Option 1 -> Planning involves setting goals and determining the course of action, not implementing reward systems for performance.
Option 2 -> Motivation involves inspiring employees to achieve better performance through incentives and rewards, which is exactly what the reward system does.
Option 3 -> Leadership focuses on guiding and influencing people, but the specific implementation of a performance-based reward system is primarily a motivation tool.
Option 4 -> Delegation refers to assigning tasks and authority to subordinates, which is unrelated to reward systems.
Hence, Option 2: Motivation -> The reward system with incentives for employees who exceed targets is a classic application of the motivation concept in management. It uses positive reinforcement (rewards) to encourage employees to perform better and achieve beyond their set targets, thereby driving productivity and performance -> correct