Which of the following statements is TRUE about incentives in a business context?

In a business context, the statement that incentives can motivate employees through alignment with business interests is accurate. This reflects a fundamental principle of motivation theories, such as self-determination theory and expectancy theory, which emphasize the importance of aligning individual goals with organizational objectives. When employees see a clear connection between their efforts and the rewards offered—whether these are financial bonuses, recognition, or career advancement—they are more likely to feel motivated to perform at their best. This alignment serves to not only enhance productivity but also to foster a culture of engagement and commitment within the organization.

Moreover, effective incentives can create a win-win situation where employees are driven to contribute to the company’s success, while the company, in turn, recognizes and rewards their contributions accordingly. This can also enhance job satisfaction and employee morale, encouraging a sense of belonging and loyalty to the organization.

Other statements are misleading in their implications. For instance, not all incentives are monetary; they can also include non-monetary rewards such as praise, promotions, or opportunities for professional development, which are vital for employee engagement and satisfaction.