Man-of-the-match and zero sum game

In a cricket match, they award man-of-the-match for that key player who made the difference. Rewarding just one player, inspires other men in the team, instead of letting them down, to try hard and win that title in coming matches.

Let me try draw parallels to a corporate setting. In a software project team of 10, with a composition of three categories of people :

Type-1 # Performers             -   Say 2

Type-2 # OK OK Performers    -    5

Type-3 # Poor performers      -    3

If you recognise and reward just Type-1 performers, the 5 ok ok Type-2’s are let down (don’t forget they form the majority), demotivated and they slid towards category three type. Their productivity dips. But let’s assume this dip is somehow covered up by those overworked top performers of Type-1.  Net result, the team  performs at the same level as it was earlier.

Question 1: Why reward in the first place, if the output of the overall team is not improved and remains the same ?

Question 2: Well…if you still insist that there should be a  tradition of recognition, there must be a cleverer way to recognise. A recognition which does not demotivate the OK OK Type-2 set of people.

Is there a much fairer way of recognition, where even OK OK type-2’s are also pleased ?