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Awards can be a powerful source of motivation in any situation, whether it be competitive or not. Specifically, it acts as extrinsic motivation – if someone is extrinsically motivated for something, then they’re putting effort into a task because of the reward at the end of it. If compensation within a set of conditions and qualifications is established prior, then extrinsic motivation can work to encourage individuals to achieve a desired goal. 

Let’s go through the 5 most common reasons that people give each other awards.