Each employee’s performance is important in an organization. A way to motivate it is through the application of reinforcement theory which is developed by B. F. Skinner. One of the most commonly used methods is positive reinforcement in which one’s behavior is strengthened or increased based on consequences. This paper aims to review the impact of positive reinforcement on the performances of employees in organizations. It can be applied by utilizing extrinsic reward or intrinsic reward. Extrinsic rewards include salary, bonus and fringe benefit while intrinsic rewards are praise, encouragement and empowerment. By applying positive reinforcement in these factors, desired positive behaviors are encouraged and negative behaviors are eliminated. Financial and non-financial incentives have a positive relationship with the efficiency and effectiveness of staffs.
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