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People often expect reward for work. When high performance is not followed by a monetary reward, future high performance is less likely according to Reinforcement theory

Reinforcement theory is known to be a psychological principle that state that behaviors are molded as a result of consequences and individual behaviors are altered through rewards and punishments.

  • Positive reinforcements often make use of rewards to reinforce behaviors.

Performance-based rewards are said to be based on the performance of an employee in a company.

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