Incentive Motivation Psychology Concepts You Should Learn About This Time

incentive motivation psychology

In any office around the world, managers are generally responsible for controlling, finding solutions to a problem, and leading their teams further. All managers want to have a good skillful team that really enjoys their work. Sometimes people are motivated to do better due to internal wishes and desires but at other times, their behavior is often driven by external rewards. Incentives are one such motivation tool that is used to achieve something bigger and much better for the employees.

How Does Incentive Motivation Psychology Work?

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Motivation is defined as the force that encourages, guides, and sustains goal-oriented behaviors of people. It is the reason behind people performing an action or engaging in a behavior. People are motivated by a drive for incentives and reinforcement and they try to behave in a way they believe will lead to a reward and avoid actions that may entail punishment.

In business, psychological, social, and cognitive factors can play a role in what incentives an employee finds motivating and to what degree. For instance, an employee might be motivated to work if a huge paycheck is provided as an incentive while another who is already having money might be motivated with a name rather than fame. Incentives can only be powerful enough to motivate when the importance of the individual place on the reward they are about to receive for their actions. Also, the incentive motivation psychology only works when the rewards are realistic and achievable.

Incentive Motivation Psychology – Different Workplace Incentives

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Employee incentives can play a significant role in retaining the employees whom you most want to keep while it can also attract employees to join your organization. At work, there are four types of incentives available that work for most situations.

Compensation incentives, that may include bonuses, raises, profit sharing, and signing bonuses.

Recognition incentives, that may include actions such as thanking employees, praising employees, announcing a particular employee’s accomplishment at one company meeting, or presenting them with a certificate of achievement. As part of an overall company employee recognition program, employers may offer recognition incentives. This type of incentive can also be offered in the day-to-day interaction of the managers with employees.

More Incentives

Appreciation incentives, that may include happenings in the companies such as celebrations, company parties, birthday celebrations, family activity events, sporting events, and paid group lunches.

Reward incentives, which may include items such as gifts, monetary rewards, gift certificates, service award presents. The employer often awards these incentives concurrently with the recognition incentives because, by this, they send a positive message to the employees about what better work and behavior they wish to see more in the workplace.


Incentives can be a great tool to get people engaged in a certain behavior or action, however, they can also be used to get people to stop doing certain actions. Mastering the incentive motivation psychology can help to improve management style, help focus on the professional development goals, and help the team members feel more valued.

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