Final answer:
An incentive motivates or discourages behavior toward a goal, with intrinsic motivation arising from internal satisfaction and extrinsic from external rewards. External incentives can undermine intrinsic motivation, but intrinsic motivation can persist if rewards are unexpected. Incentives are crucial in the decision-making process and behavior in organizational contexts.
Step-by-step explanation:
The factor that motivates performance of a desired behavior or discourages performance of an undesired behavior is known as an incentive. Motivation involves the wants or needs that direct behavior toward a goal and can be either intrinsic motivation, which is based on internal feelings, or extrinsic motivation, which involves external rewards. While intrinsic motivation leads to performing a behavior for personal satisfaction, extrinsic motivation entails performing a behavior to receive something from others, such as money or praise.
Research has shown that external rewards can undermine intrinsic motivation, a phenomenon known as the overjustification effect. This happens when an activity that one initially enjoys for its own sake becomes associated with extrinsic rewards, such as payment, leading the activity to be perceived as work rather than pleasure. However, if extrinsic rewards are unexpected, intrinsic motivation may persist.
Incentives play a vital role in our decision-making process, as different types of incentives can motivate behaviors in various contexts, such as joining organizations that offer purposive, solidary, or material incentives.