which type of incentive makes it more profitable to follow a certain course of action?
Answer:
It is in financial incentive that we get the best type of incentive that makes it more financially rewarding to adhere to a particular course of action. Yet, the role of incentives remains contingent upon the given context; however, money, as a rule, is described as a strong motivator for many people and companies.
As a type of motivation, financial incentives are based on the rewards of providing a subject with more money, to respond to a task in a preferred manner and/or to meet certain objectives. For instance, a firm may offer an incentive of a commission for reaching the projected sales, implying that the organization gains when employees work hard to meet the target of selling products. In the same manner, governments can offer incentives such as tax exemptions and subsidies to companies that support environmentally friendly products so that those supporting unfavourable environmental impacts are discouraged.
These remunerations may be in terms of money, bonuses, stocks, direct cash payments, or deductions on bills. They can be quite useful in cases where the expected action is somehow very costly or risky because the monetary incentive makes up for the costs or dangers involved. That said, it should be mentioned that, although financial incentives are most of the time extremely effective, they cannot necessarily be considered the best strategy in every case. In some instances, other motivators such as goodwill, other fringe benefits such as promotions within the company or satisfaction that comes with the work done could also act as an incentive. In promoting incentive strategy, it is reported that best practice incentive rewards are always a mix of Financial and Non-financial incentives in most cases, which are inclined to the condition and the people involved
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