How to Create an Inspiring Work Setting « Workplace Psychology

Harvard Business Review’s Answer Exchange lists some great ways to foster an inspired work environment:

• Regularly explain to your employees the importance of their work to the company’s larger goals.
  
• Express your appreciation of their efforts towards this goal
  
• Break down long-term assignments into clear, achievable, short-term milestones that can be celebrated when achieved.
• Demonstrate confidence in your employees’ ability to overcome problems. (not by disappearing to the golf course or having long lunches)
  
• Regularly take employees aside and ask them if they feel challenged, listened to, and recognised. (check you know their names first)
  
• When giving feedback, balance negative criticism with feedback that accentuates the positive.
• Always recognise others for a job well done. Use rewards to acknowledge superior performance.
  
• Celebrate every success and milestone. (remember to Budget for this and don't skimp)
  

Reference: Harvard Business Review (2010). HBR Answers Exchange. http://answers.hbr.org/
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