Honours as Signals
Awards are non-material and symbolic rewards, and do not necessarily have to go with money. Award givers may emit signals of quality, of intent, and of their beliefs. Managers can use the signalling functions of awards to subtly steer the behaviour of (present and future) employees, without having to recur to control through explicit, conditional incentives. Awards can also give rise to signalling failures. They have to be used with moderation, and they can rarely be substituted for money where money is already in place. If well designed, awards can raise intrinsic motivation, as the recipients are explicitly lauded when they receive the award. In comparison to money, awards tend to raise loyalty to the giver and avoid crowding out intrinsic motivation; moreover, they have a more sustainable effect on behaviour. They also remain visible in the future, creating a trophy value that maintains the awards’ salience and their signalling functions even over the medium and long term.