Question

6
Three friends, Rajat, Raman and Ansh, after completing their MBA from
a reputed business school at Mumbai, were discussing about the type of
organisation they would like to join. Rajat was very clear that he would
like to take up a government job as it gives stability about the future
income and work which will help him to work with greater zeal. It will
also provide him pension when he will retire from his service.
Raman wanted to work in a company, which has appropriate skill
development plans for its employees and helps the employees to grow to
higher levels in the organisation. In addition to this, the company should
also provide facilities like housing, medical aid, etc.
Ansh said that he would prefer to work in an organisation, which has the
culture of individual autonomy, is considerate to employees and provides
the employees with opportunity for personal growth and a meaningful
work experience.
Identify the various financial and non-financial incentives
diseussed by the three friends in the above conversation.
7 D ) . Explain three other non-financial incentives which were not
discussed by any one
of them.​

Answer 1

An incentive refers to the benefit (financial/service) that the worker/employee receives along with a stable salary. It works as a motivating factor which encourages workers/employees to improve their quality of work.

In this case study the incentives for each person are as follows:

1. Rajat: Job and future security

• Government employees benefit from the security of being permanent on the job they land within the government authorisation. They do not have to face the threat of redundancy or job dismissal.
• In addition, many benefitting schemes are in the run for the post-retirement period of a government employee. Pension is one such running scheme.  
• Also, many government employees are offered a house in government quarters to live in paying no money. This can motivate individuals such as Rajat to opt for government jobs as their lifelong source of income and benefits.

2. Raman: Personal growth, Promotion and Fringe benefits

• Raman seems to be motivated by the chances of promotion. Promotion is a common incentive for employees as it is rewarding to them in financial as well as social settings. Promotion promises a salary boost and stronger status in the social hierarchy which will motivate anyone to work more efficiently.
• Moreover, Rajat also is possibly interested in enriching his skills. Programs for improving skillsets are a major motivator in terms of self-development.
• Lastly, fringe benefits help the employees cut their personal expenses such as fuel/ travel costs, food expenses and medical insurance. These additional benefits encourage employees to never think of leaving the organisation and work hard to be safe from being redundant or replaced.

3. Ansh: Job enrichment, Focus group

• Ansh seems to be keen on bettering his MBA skills. This suggests he is passionate about his job. Being comfortable and genuinely liking the job is the best motivating factor that can improve your efficiency at work.

Some other incentives include:

1. Flexible working hours: employees may be motivated to work in an organisation that is lenient with their working hours so that the employees have enough time to spend on their personal life
2. Maternity care programs: New mothers in the office need to be granted enough days off without having their pay cut off. An organisation offering these benefits might attract and motivate more female employees to be loyal to the organisation.  
3. Performance bonuses: If a financial reward is promised with enhanced employee performance, every individual will be motivated to work accordingly to secure their bonuses of extra finance.

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