incentives

(noun)

Ways to promote a desired action.

Related Terms

Examples of incentives in the following topics:

  • Individuals Respond to Incentives

    • Perhaps the most notable incentive in economics is price.
    • Remunerative incentives: The incentive comes in the form of some sort of material reward – especially money – in exchange for acting in a particular way.
    • Societies and cultures are two main sources of moral incentives.
    • Coercive incentives: The incentive is a promise of some sort of punishment if the wrong decision is made.
    • Economics is mainly concerned with remunerative incentives, though, when discussing government regulations, coercive incentives often come into play.

  • Incentive Systems for Employees

    • Human resources professionals assess organizational and employee needs to identify the ideal incentive systems for collaborative success.
    • An incentive system is a business management tool that introduces a structured motivation system to promote desired employee behaviors.
    • It's counter-intuitive, but research has shown that monetary rewards are ineffective incentives.
    • Human resources departments must identify the core culture of the organization and create incentives that match it.
    • To reduce employee errors, an incentives system could reward efficiency.

  • Financial Structures

    • Understand how to qualify and leverage financial incentives through the Small Business Administration (SBA).

  • Financial Rewards for Managers

    • The interest of participants plays a vital role in determining an incentive program, as the goal is to motivate their behavior.
    • These and other incentive programs are often used to reduce turnover, boost morale and loyalty, improve employee wellness, increase retention, and drive performance.
    • In this view, financial rewards like bonuses serve as an incentive for senior management to improve performance.
    • A risk of incentive schemes is ethical hazards.
    • In the wake of the global recession of 2008–2010, financial incentive schemes received greater criticism and oversight, partly for this very reason.

  • Motivations Behind the Formation of Interest Groups

    • Members comprising interest groups join for solidarity, material, or purposive incentives.
    • Thus, there is no real incentive to join an interest group and pay dues if the farmer will receive that benefit anyway.
    • An expressive incentive is another basic type of incentive or benefit offered to being a member of an interest group.
    • An expressive incentive is another basic type of incentive or benefit offered to being a member of an interest group.
    • Identify the benefits and incentives for individuals to join interest groups

  • Positive Reinforcement

    • Employee incentive programs are programs used to increase overall employee performance.
    • Dealer incentive programs are used to improve performance for dealer and channel resellers using sales incentive programs.
    • Sales incentive programs have the most direct relationship to outcomes.
    • To facilitate the creation of a profitable program, every feature of the incentive program must be tailored to the participants' interests.
    • A successful incentive program requires clearly defined rules, suitable rewards, efficient communication strategies, and measurable success metrics.

  • Advantages of Private Financing

    • Private financing can enhance a firm's capital structure, save on costs, and improve managerial incentive alignment.
    • Managerial incentives: In many instances it is the management which takes over and privately controls the company.
    • In this case, they have a more immediate incentive to improve the company's performance, because they are investors as well.

  • The payoff for customers

    • The incentives include:

  • Tax

    • The tax is set equal to the value of the negative externality and provides incentives for allocation of resources closer to the social optimum.
    • Taxes make it more expensive for firms to produce the good or service generating the externality, thus providing an incentive to produce less of it .
    • The polluter now has an incentive to generate less pollution.
    • This gives producers an incentive to reduce output to the socially optimum level.

  • Incentive Theory of Motivation and Intrinsic vs. Extrinsic Motivation

    • According to incentive theory, behavior is primarily motivated by the incentive of extrinsic factors.
    • In general, motivators provide some sort of incentive for completing a task.
    • Social and emotional incentives like praise and attention are also extrinsic motivators since they are bestowed on the individual by another person.
    • In those cases, extrinsic motivators can backfire: instead of serving as an incentive for the desired behavior, they undermine a previously held intrinsic motivation.
    • Differentiate between intrinsic and extrinsic incentives as related to theories of motivation