Incentive Theory

Incentive theory suggests that our behavior is motivated by external rewards or incentives. It posits that people are driven to act in ways that will lead to positive outcomes or benefits, such as money, praise, or recognition. For example, students may study hard to earn good grades, while employees may work diligently to receive bonuses or promotions. This theory highlights how environmental factors and rewards influence decisions and actions, emphasizing the importance of motivation in achieving goals. Essentially, it explains why we pursue certain actions based on the potential rewards we expect to receive.