carrot and stick

carrot and stick definition - business

carrot and stick

A combination offer of a reward along with a threat of punishment if the carrot isn't earned. For example, a construction company may be offered a bonus if a building is completed by a specified date, but be penalized if the target date isn't met.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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