Sunday 21 October 2012

Incentive

Incentive
Something that provides a motive for aperson to choose a particular course of action. Organized cooperative activities ina social setting -- such as cooperation for the purpose of economic production -- depends upon each of the participants having some sort of incentive to behave in the required cooperative fashion. Different societies (and even different organizations within the same society) vary considerably in the nature of the incentive systems upon which they characteristically rely to organize their common projects.
Incentives may be classified according to a number of different schemes, but one of the more useful classifications subdivides incentives into three general types: moral incentives,coercive incentives andremunerative incentives.