Incentive theory is a specific theory of motivation, derived partly from behaviorist principles of reinforcement, which concerns an incentive or motive to do something. The most common incentive would be a compensation. Compensation can be tangible or intangible. It helps in motivating the employees in their corporate life, students in academics, and inspire them to do more and more to achieve profitability in every field. Studies show that if the person receives the reward immediately, the effect is greater, and decreases as delay lengthens. Repetitive action-reward combination can cause the action to become a habit