Recognizing employees with incentive awards is probably the most flexible management tool you have as a manager. Public recognition of superior ideas and outstanding individual and group performance helps build morale. It can also help you as a manager to build and maintain a highly motivated and productive organization. Your employees will perceive that you welcome new ideas and reward high performance.
Types of Recognition - There are three categories of recognition: Honorary, Monetary, and Time-off.
All can serve as motivation to the recipients and other employees. Effective use of awards requires consideration of the nature of the contribution and the needs and interests of the employees. For example, while it might be more appropriate to grant an honorary award to an individual for long and distinguished service, cash recognition might be considered appropriate for individual sustained superior job performance or for an individual or a group of employees who have produced an excellent product or completed a complex assignment in an outstanding way.
The Appropriate Use of Awards - The granting of awards should be considered judiciously by managers, especially in the area of performance awards, in order to avoid giving the impression that it is an employee's entitlement. Awards should only be granted where fully deserved, to those who meet the criteria, and with full explanation as to the accomplishments being recognized. In this way, you will maintain employees' confidence in the value and integrity of awards granted in your organization.