Difference between revisions of "Incentive"
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| − | An '''incentive''' is a | + | An '''incentive''' is usually some sort of reward (or a threat of punishment) that persuades a person to complete a task. Many companies use incentives to entice new customers to their business. For example, car manufacturers offer incentives to consumers, such as 0% financing, cash back offers or lifetime warranties, to bring in business. |
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| + | Of course, the main incentive for Americans is their paycheck. Performing tasks that go above and beyond one's responsibilities at a firm can result in a bonus for that individual or consideration for a promotion, while performing below expectations can lead to termination of employment, and loss of one's income. | ||
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| + | ==Minneapolis 35W Bridge Collapse & Reconstruction== | ||
| + | After the collapse of the [[35W]] bridge in [[Minneapolis]] in 2007, incentives for finishing the bridge ahead of schedule had the potential of netting the company responsible for reconstruction $27 million, in addition to the original cost of replacing the bridge. On the other hand, missing the completion date would have resulted in a $200,000 a day penalty for every day past the target date. As a result of the incentives offered, the bridge was finished in September 2008, three months ahead of schedule.<ref>[http://minnesota.publicradio.org/display/web/2008/09/18/bridge_opens/ New Interstate 35W bridge in Minneapolis opens] MPR News, September 18, 2008</ref> | ||
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| + | ==References== | ||
| + | {{reflist|1}} | ||
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| + | [[Category:Economics terms]] | ||
| + | [[Category:Business]] | ||
Revision as of 18:15, April 12, 2011
An incentive is usually some sort of reward (or a threat of punishment) that persuades a person to complete a task. Many companies use incentives to entice new customers to their business. For example, car manufacturers offer incentives to consumers, such as 0% financing, cash back offers or lifetime warranties, to bring in business.
Of course, the main incentive for Americans is their paycheck. Performing tasks that go above and beyond one's responsibilities at a firm can result in a bonus for that individual or consideration for a promotion, while performing below expectations can lead to termination of employment, and loss of one's income.
Minneapolis 35W Bridge Collapse & Reconstruction
After the collapse of the 35W bridge in Minneapolis in 2007, incentives for finishing the bridge ahead of schedule had the potential of netting the company responsible for reconstruction $27 million, in addition to the original cost of replacing the bridge. On the other hand, missing the completion date would have resulted in a $200,000 a day penalty for every day past the target date. As a result of the incentives offered, the bridge was finished in September 2008, three months ahead of schedule.[1]
References
- ↑ New Interstate 35W bridge in Minneapolis opens MPR News, September 18, 2008