APA Dictionary of Psychology

incentive system

Updated on 04/19/2018
in organizational settings, a set of rewards and rules for their disbursement that is designed to influence future performance. Incentives vary in motivating power from group to group. As well as increased pay, common incentives include pensions, gainsharing schemes, performance-related bonuses, employee stock shares, gym memberships, and corporate entertainment (e.g., tickets for sports events). See also disincentive; work motivation.
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