Final answer:
Competency-based rewards can motivate employees to work in teams if they emphasize teamwork competencies, but it's not a universal effect. The specific design of the reward system and organizational culture play a critical role in influencing team motivation. An example of a possible downside is the 'team halo effect', which may lead to an overestimation of a team's effectiveness.
Step-by-step explanation:
Competency-based rewards are designed to motivate employees by recognizing and rewarding their skills, abilities, and achievements rather than their job titles or seniority. One of the effects of this type of reward system can be increased motivation to work in teams if the competencies rewarded include teamwork and collaborative skills. However, it is not inherently true or false that competency-based rewards always motivate employees to work in teams, as this depends on the specific context and design of the reward system. Team motivation can be influenced by a variety of factors, including team dynamics, organizational culture, and individual employee values.
As an example, if a company rewards competencies such as effective communication, conflict resolution, and joint problem-solving, it might encourage employees to work better in teams. On the other hand, if competencies are rewarded on an individual basis with no focus on team performance, employees might be motivated to work well on their own instead. It's important to note that even within team-based rewards, there can be downsides like the 'team halo effect' where teams appear to work better than they actually do (Answer: a). This can overshadow individual contributions or hide dysfunctions within the team.