What is one negative aspect of individual awards in performance related pay?

Individual awards in performance-related pay can create a competitive atmosphere that may lead to division among team members. When individuals are recognized solely for their personal achievements, this can shift focus away from teamwork and collaboration. Instead of fostering a supportive environment where everyone works together towards common goals, the emphasis on individual performance can result in rivalry and a lack of cohesion within the team.

Team members may feel resentment or jealousy towards those who receive awards, which can erode trust and diminish the overall effectiveness of the team's efforts. This division may hinder communication and cooperation, ultimately affecting productivity and morale. Such dynamics can be counterproductive, as they deter the collective effort needed to achieve organizational objectives.

In contrast, the other choices suggest positive outcomes associated with team dynamics and collaboration, which are less likely in environments that focus heavily on individual accolades. Thus, the negative impact of individual awards on team unity highlights the importance of balancing recognition to maintain a harmonious and productive team environment.