But reward and punishment have limitations. Employees know that they will only be rewarded to a certain degree and that they can only be punished until they decide to make a career change. Leaders create a culture that appeals to the highest need in people. This can be illustrated by using psychologist's Abraham Maslow's hierarchy of needs. You trade a day's labor for enough compensation to put a roof over your head, food on the table, a pension, and some insurance.
Leaders appeal to the higher needs or the psychological needs.
They recognize employees for a job well done and create a sense of belonging through a culture that rewards teamwork. The most dynamic organizations appeal to our need to fulfil our own unique potential by helping us find our own niche within the organization and allowing us to contribute what we do best. Therefore, the most critical contribution that leaders make in an organization is painting the picture of that common purpose so vividly that no one can help but understand it. FSP is the largest provider of fire service training materials in the world. The purpose of the organization is not only found in their mission statement but it is posted prominently in all offices and hallways and on items such as coffee mugs and computer mouse pads.