IDEAS home Printed from https://ideas.repec.org/h/spr/spbrcp/978-981-16-2979-2_3.html
   My bibliography  Save this book chapter

The Theory of Incentive

In: Management Theory by Chester Barnard

Author

Listed:
  • Kazuhito Isomura

    (Chuo University)

Abstract

The theory of incentive is mainly related to a willingness to cooperate that is the condition of establishing a formal organization. The formal organization depends upon individuals’ willingness to cooperate and their contributions to the formal organization. Therefore, individuals are a strategic factor in the formal organization. The formal organization is continuously required to attract individuals and elicit their contributions. Individuals’ contributions are basically induced by incentives. They have their own individual motives, and the formal organization needs to provide incentives appropriate to them. When incentives are greater than individuals’ contributions, individuals decide to join the formal organization and contribute to it. Thus, the formal organization has to produce and distribute sufficient incentives to contributors. This chapter first examines the significance of incentives, then shows different types of incentive. Subsequently, it explains two methods to induce individuals’ contributions: incentives and persuasion. Finally, the chapter argues how to construct the economy of incentives to increase organization efficiency.

Suggested Citation

  • Kazuhito Isomura, 2021. "The Theory of Incentive," SpringerBriefs in Business, in: Management Theory by Chester Barnard, chapter 0, pages 21-35, Springer.
    • Handle: RePEc:spr:spbrcp:978-981-16-2979-2_3
    DOI: 10.1007/978-981-16-2979-2_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:spbrcp:978-981-16-2979-2_3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.