What best describes the incentive theory?

In the business world, Incentive Theory is the theory that firm owners should structure employee compensation in such a way that the employees' goals are aligned with the owners' goals.

In the world of Psychology, Incentive Theory is the theory that a person's actions always have social ramifications such as: If actions are positively received then people are more likely to act in that manner or if actions are negatively received people are less likely to act in that manner.

This theory argues that humans focus on external or environmental cues instead of internal drives to motivate behavior, and can be effectively used in education.