I envisioned the sword as a sort of loyalty test, yes. If you have this sword, you definitely know how your subordinates feel about you.
The idea behind the ruby is that people go through a lot of shit if they're convinced they'll be satisfied in the end. And here's a magic stone that can guarantee you'll feel that way!
(EDIT: Although if you wanted to read it as the ruby making other people satisfied, that's still a great plot hook.)