Question

(a) Explain any four non-financial incentives.

Accepted Answer

Non-financial incentives: (i) Status  Status means ranking of positions in the organisation. The authority, responsibility, rewards, recognition, perquisites and prestige of job indicate the status given to a person holding a managerial position.  Psychological, social and esteem needs of an individual are satisfied by status given to their job. (ii) Organisational Climate:  Organisational climate indicates the characteristics which describe an organisation and distinguish one organisation from the other, like, individual autonomy, reward orientation, consideration to employees.  These characteristics influence the behaviour of individuals in the organisation and if managers take positive measures regarding these aspects, it helps to develop better organisational climate. (iii) Career Advancement Opportunity:  Managers should provide opportunity to employees to improve their skills and be promoted to the higher level jobs.  Appropriate skill development programmes, and sound promotion policy will help employees to achieve promotions. Promotion encourages employees to exhibit improved performance. (iv) Job Enrichment:  Job enrichment is concerned with designing jobs that include greater variety of work content, require higher level of knowledge and skill; give workers more autonomy and responsibility; and provide the opportunity for personal growth and a meaningful work experience.  If jobs are enriched and made interesting, the job itself becomes a source of motivation to the individual. (v) Employee Recognition programmes:  Recognition means acknowledgment with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform/work at a higher level.  Examples of employee recognition are congratulating the employee for good performance, displaying on the notice board or in the company news letter about the achievement of an employee, installing award or certificate for best performance, distributing mementos, etc. (vi) Job security:  Employees want their jobs to be secure. They want certain stability about future income and work so that they do not feel worried about these aspects and work with greater zeal.  However, when people feel that they are likely to lose their jobs, they may become complacent. (vii) Employee participation: It means involving employees in decision making of the issues  related to them. In may be in the form of participation in joint management  committees, work committees, canteen committees etc., (viii) Employee Empowerment: Empowerment means giving more autonomy and powers to  subordinates. Empowerment makes people feel that their jobs are important. This  feeling contributes positively to the use of skills and talents in the job performance.

Marking-scheme solution

More from Directing