There are no logical actors. People base their decisions on emotion and how well they like a person. Promotions and office political power are doled out to those who can most successfully navigate within the circles of top management. Acting rationally is not always the most productive choice for the company. This is even more often true for society.
Hard work is just hard work.
Most of the time corporations and businesses have no system to reward or even recognize those who work longer, harder and better. As a matter of fact, many times people are given an incentive to work less. Oftentimes, lower-level managers purposely stifle excellent workers that may replace them under more objective circumstances. Never underestimate the power of kissing ass. A good golf game, inviting the boss over for dinner and bending company rules in order to placate a person in top management are all strategies that I have seen employed with great effect.