✓ Board-verified
Business Studies · 2022 · 3 marks
CBSE 2022 · Region 3 · Set 1 · Q6
What is meant by financial incentives? State any two financial incentives.
What is meant by financial incentives? State
any two financial incentives.
OR
State any three benefits of training to employees.
Marking-scheme solution
Financial incentives refer to incentives which
are in direct monetary form or measurable in
monetary terms and serve to motivate people for
better performance.
Financial incentives :
(i)
Pay and allowances include basic pay, dearness
allowance and other allowances given to
employees.
(ii)
Productivity linked wage incentives aim at
linking payment of wages to increase in
productivity at individual or group level.
(iii)
Bonus is an incentive offered over and above the
wages/salaries to the employees for higher
performance.
(iv)
Profit- sharing means providing a share to
employees in the profits of the organisation.
(v)
Co-partnership/stock option is an incentive in
which employees are offered company shares at a
set price, which is lower than market price, to
create a feeling of ownership and make them
contribute for the growth of the organisation.
Retirement benefits such as provident fund,
(vi)
pension and gratuity, which provide financial
security to employees after their retirement, act as
an incentive when they are in service in the
organisation.
Perquisites such as car allowance, housing and
(vii)
medical aid, etc., are offered to employees over
and above the salary to provide motivation to them.
OR
Benefits of training to employees :
(i)
Improved skills and knowledge due to training lead
to better career of the individual.
(ii)
Increased performance by the individual help him
to earn more.
(iii)
Training makes the employee more efficient to
handle machines, thus, less prone to accidents.
(iv)
Training increases the satisfaction and morale of
employees.
More from Directing
- To motivate its employees on one side, ‘Harshita Pearls’ rewards them with increase in pay, promotion, recognition, etc. whereas on the other side it…2024
- Identify and state any three features of the process of stimulating people to action to accomplish desired goals. OR Identify and state three points…2023
- Sara recently received her degree in automobile engineering and decided to join her father's electric vehicle business. They were not only selling…2025
- Explain any four psychological barriers to communication. OR Explain first four steps in the process of controlling.2026
- Ankita was the Managing Director at ‘Tech Smart’, an IT company. She was facing problems in retaining the employees in the company. While discussing…2025
- The leadership style in which a leader develops action plans and makes decisions in consultation with his subordinates, is known as:2025
- What is meant by ‘leadership’? State any two leadership styles.2022
- Explain ‘Job Enrichment' and 'Employee Participation' as non-financial incentives. OR Explain any two personal barriers to effective communication.2025
CBSE Class 12 Business Studies past-paper question from the 2022 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.