In an effective organisation, rewards are used well. Rewarding means recognising employees, individually and as members of teams, for their performance and acknowledging their contributions to the company’s mission. A basic principle of effective management is that all behaviour is controlled by its consequences. Those consequences can and should be both formal and informal.
Good performance is recognised without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance Ñ like saying “Thank you” Ñ don’t require specific approval.