Praise for a job well done is a great motivator for an employee, especially if he comes from a higher position.
The counter effect of praise is only in the situation when there are too frequent, and they are not accompanied by any kind of reward (preferably monetary).
I like to praise the colleagues I work with for a job well done, and to say "Thank you".
As well as give criticism when something is not well done.
As a leader myself, I give praise where it is due, but only when it is due because it has to be genuine. I also don't believe praise has to come with financial reward, often that diminishes the value of a heartfelt thank you or greatitide. Praise has to be relevant and if not, it diminishes and cheapens those occasions when it is relevant.