Future Business Leaders of America (FBLA) Organizational Leadership Practice Test

Why is it essential not to reward poor or mediocre work, according to leadership guidelines?

1. It can demotivate high performers

2. It encourages a competitive environment

3. It complicates the management process

4. It negatively impacts employee morale

The correct answer is: It can demotivate high performers

Rewarding poor or mediocre work can significantly demotivate high performers because they may feel that their exceptional contributions are not valued or recognized appropriately. When rewards are given equally or generously to all levels of performance, it creates a perception that effort and quality are irrelevant. This can lead to frustration among high achievers, who typically seek acknowledgment for their hard work and accomplishments. As a result, they might reduce their productivity or disengage from their tasks, ultimately harming the overall performance of the team or organization. High performers thrive in an environment that recognizes and incentivizes excellence, which helps to maintain and elevate standards of quality across the board.