Alarm One, an Anaheim, Calif., home-security company, recently learned the cost of not properly overseeing managers' motivational practices: This spring, a jury awarded Janet Orlando, a former employee in Alarm One's Fresno office, $1.7 million, for damages suffered as the result of a misguided recognition program. The Fresno office is now closed. The suit detailed sales meetings in which winners ridiculed losers by throwing pies in their faces, feeding them baby food and spanking them with competitors' lawn signs. "According to [sales vice president Mike Odumuyiway], this was all part of team building and camaraderie amongst the sales force," reads the brief submitted by the defense. Alarm One didn't return calls to its human resources department seeking comment. —M.R.

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