I've been giving awards to students now for about 5 years. An example, Award for Best Game Design Document. I give the requirements for the document and let the students know they must meet the requirements, yet for the students that want to go above and beyond, and award certificate is in their reach.
The documents I receive from the students are 90% excellent.
I find passive competition works well and it puts no pressure on the students that are not great writers.
A list of the Award winners can be seen at davidpinter.com
