Final answer:
The incentive principle states that a person is motivated by the prospect of receiving rewards or benefits for their actions or behaviors. They can be motivated by intrinsic or internal incentives such as personal satisfaction or a sense of accomplishment, as well as extrinsic or external incentives such as monetary rewards and recognition.
Step-by-step explanation:
The incentive principle states that a person is motivated by the prospect of receiving rewards or benefits for their actions or behaviors.
For example, in the given scenario of a businessman who feels that he deserves a raise but is nervous to ask his manager, he may comfort himself with the idea that hard work is its own reward. In this case, the businessman is motivated by the intrinsic or internal incentive of personal satisfaction or a sense of accomplishment from his hard work.
However, the incentive principle recognizes that individuals are also motivated by extrinsic or external incentives such as monetary rewards, recognition, promotions, and other material benefits. These external incentives can significantly influence a person's behavior and decision-making.