The widespread presence of awards throughout human history in all kinds of forms and contexts personifies human motivation to always do better and aspire to improvement. Even today, with globalization, increasing competition and the movement of talent around the world, there is evident need to ensure people are motivated. Why is it important to bring prestige to individuals who have highlighted the values of a particular group, or society in general?

1. Establishment of role models

Award winners are individuals recognized by society to be promoting positive values. They represent role models of desirable behavior regardless of the fact whether they consciously worked towards awards or were simply rewarded for their spontaneous contribution. Publicity has a substantial positive effect on the others, encouraging their sense of reward, motivation and hence their behavior and performance in an upward spiral.

2. Quest for social recognition

Quest for social recognition is an important driver of behavior. Awards are regarded to be symbols of recognition within a community or society. They are specifically designed to fulfill the human desire to be publicly recognized and honored by others in their own reference group. In this way people are motivated and can use competitive advantage to boost productivity or create breakthrough ideas. The urge for recognition then becomes an exciting incentive to bring out the best in an individual.

3. Equal opportunities for all

Financial incentives providing additional resources to vulnerable groups in forms of grants or monetary awards represent an indispensable tool in fight against unequal opportunities and budget constraints. The capacity of such programs to promote equal opportunities and change ingrained patterns of behavior contributes to the possibility for great improvement. At the heart of motivation is the opportunity to pursue projects that would otherwise not be realized. This maximizes both positive behavior and confidence, and reinforces positive expectations underprivileged individuals can aspire to have.

Perceptions of fairness and equity are critical to the maintenance of all these advantages of using award system. Along with perceived desirability and repetition of awards, the way an award is managed determines how effective the award will be and whether it will live up to the expectations. Unmet expectations can have the entirely opposite effect. One way of ensuring the award granting process is successfully managed is trying to reduce the possibility of human error.