Manager should set the example or you will only encourage them to hide their mistakes. This could create waste and expense in the longer term. Criticism Never criticize an employee in front of other employees. You will lose the respect of those who view the incident. Take the sting out of criticism by focusing the discussion on the task and not on the person.
Praise is a non-expense method to increase morale, motivation and productivity.
Most people respond to praise by working harder. Loyalty Healthy loyalty is built on mutual respect. Loyalty is not built on a dishonest base. Loyalty is a willing commitment. Obligation throws loyalty into subservience.