The incentive theory

The incentive theory

The incentive theory in management involves a situation whereby the behavior of the employees is motivated. This is through the rewards that accrue as a result of good employee behaviors. This theory is mainly applied in business management, and it works by improving employee morale in high-stress work environments.

The incentive theory push employees away from actions that may lead to negative consequences. Hence, the external incentives of a given workplace pull the employees to excellently performing their duties. The main aim of the incentive theory in any organization is that it directs the employees towards receiving rewards. It is through these rewards that the employees feel motivated.

This particular theory is usually a promise to an employee due to their significant actions. For instance in business management, incentives act as an added benefit that is given to an employee as a way of appreciating their efforts or as a way of encouraging them to work harder towards the achievements of an enterprise.

Incentives are usually divided into two. This includes monetary incentives and non-monetary incentives. Some few examples of non-monetary incentives include job promotion to the employees, job satisfaction, and probably job security. In general, both types of incentives help motivate employees in their work environments.

However, incentives become of value if the employees find them essential. Hence in comparison, some incentives are more motivating than others. By the fact that people are different, a special reward posed as an incentive may fail to make different employees take similar actions. This rotates around the social and physiological factors that identify what role an incentive may play in an individual.

In conclusion, incentive theory in management helps improve the morale of individuals in their work environment. They are usually an act or a promise that is awarded to an employee out of their excellent work or as a way of encouraging them to perform better. Incentives are usually divided into two, which is the monetary incentives and non-monetary incentives.