Explain how organizational leaders allocate rewards.

Answers will vary. To ensure that values are accepted, leaders should reward behavior that is consistent with the values. Some companies, for example, may claim that they use a pay-for-performance system that distributes rewards on the basis of performance. When the time comes for raises, however, the increases are awarded according to length of service with the company. Imagine the feelings of a high-performing newcomer who receives only a tiny raise after hearing company leaders espouse the value of rewarding individual performance.
Some companies may claim to value teamwork. They form cross-functional teams and empower these teams to make important decisions. However, when performance is appraised, the criteria for rating employees focus on individual performance. Please see the section "The Leader's Role in Shaping and Reinforcing Culture" for more information.