The Organizational Behaviour modification theory or the Reinforcement theory deals with changing behaviour through rewards or punishments that are essentially contingent on performance.
It is primarily based on the following two principles.
1. A behaviour that leads to a positive consequence (reward) tends to be repeated, while a behaviour that leads to a negative consequence (punishment) tends not to be repeated.
2. Managers can influence and change an employee’s behaviour through properly scheduled rewards or punishment.
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