Financial Incentive
Money-based rewards motivating performance: salary increases, bonus, commission, profit share, pay rises.
Real World
Salespeople at car dealerships like Arnold Clark earn commission on each sale, directly linking pay to performance and incentivising higher effort — but this can encourage mis-selling if not managed carefully.
Exam Focus
Always evaluate financial incentives against motivational theory (e.g. Herzberg's hygiene factors) to show limitations for top-band marks.
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