Distinguish.between.monetary.nd non.monetary incentive.in points
Answers
-Monetary terms are those terms which can be expressed in money..
-It comes under economic activity..
-eg. Teacher teaching in school..she is being paid..
-Non monetary terms are those that can not be expressed in terms of money..
-It comes under non economic activity
-eg. Teacher teaching his son/daughter..she is not being paid..
Monetary incentive:
-These are classified as money based rewards given to employees as an appraisal for their performance.
-These incentives mainly include cash bonus, profit-sharing, commissions etc.
-It is rewarded to employees for a job done well so they look forward to something to strive for.
-Monetary incentives are more powerful in motivating the employees
- The drawback is that the employee acts in order to possess the monetary reward and loses creativity.
Non-monetary incentive:
-These come with the promise of an opportunity. These include flexible hours of work, monetary leaves, insurance, education allowance, medical allowance etc.
-the purpose of a non-monetary incentive is to reward the employee after the fact of doing a good job. So employees do not usually strive for it.
-It is not as effective as monetary rewards