At its core the purpose of management is the achievement of goals through the efforts of subordinate employees. That is true in every organization. No organization can succeed if the workforce is not on board and committed to achieving goals.
In business, financial rewards are integral to the management of performance. Linking incentives to goal achievement makes the goals an ongoing concern and a frequent topic of discussion among co-workers. It reinforces management’s priorities. The basic model for management incentives has been used for years.