This can be a positive thing for incentive, but can cause jealousy and strife, which really is unfortunate.

Most businesses are limited by financial resources. Increases in pay are what most people want most, but it is unrealistic to always provide those. Recognizing an individual or group for excellent work is a great way to keep people motivated. It is validating to know that others where you work see and appreciate your contributions.

Absolutely.  Either a shout out at a meeting or a thank you for your boss will go a long way.  Not everyone needs this but most people feel good about it.  Part of the reason why many sales people get excited about their jobs is not just for the money but for the gratification.  Its competetitve and getting recognized in some way to stand out from your peers/competition makes people want to work that much harder.

Novel idea...but...only if the employee will be recognized AND receive extra pay! I'll be damed if I want to have my mug posted on a wall and not receive the corresponding pay to go along with.

An employee deserves to be recognized if they are working hard.

we are supposed to be recogninzed one month a year, but they don't start to do anything until the month is almost over.

Awesome, I work at Les Schwab and there is nthing but good things said from my supervisoors mouth. Because of this I work my ass off to satisfy these people.

Magellan is so right! Such a simple thing to do, costs the company nothing at all, costs the boss only seconds of his/her time. How these simple facts slip past so many is beyond me. I have had the pleasure of having at least one or two supervisors who got it. And, since the recognition was very genuine as well I was definatley willing to go the extra mile for these people.

An almost four. It is nice to know that your boss appreciates you when you work your back-end off to do your job. And for them to tell you it means a lot. Sometimes getting extra perks is nice too. my husband gets tickets to sports events and an occasional gift certificate, it makes all the difference in his attitude about his job.{ i am not employed right now so cannot use myself as an example} the only thing that would be lame is the dumb employee of the month thing where they put their face on the bulliten board for all to see. would cause more resentment amongst other employees than do any good.

This is a big one. And it doesn't have to be a prize, or a check, or a forced appreciation during an all-employee meeting. All it takes is for your boss to notice if you are busting your ass, and tell you that they appreciate it. A shocking number of managers don't get this.