Question

Explain different financial and non-financial incentives used to motivate employees of a company?

Answer 1

financial employees are those which motive of company is earn profit.
ex: banks ,business ,enterprises etc
and
non financial employees are those which company of motive is  social service  ,attraction etc.

Answer 2

SOLUTION :  

Different financial and non-financial incentives used to motivate employees of a company are :  

FINANCIAL/MONETARY INCENTIVES :  

The incentive which are directly or indirectly associated with monetary benefits are called monetary incentives.

It includes salary, bonus, commission and other financial perquisites like free house , servant, car,etc.

(a) PAY AND ALLOWANCES :  

It includes basic salary, wages and allowances.  Salary system consists of regular increments in the pay and  enhancement of allowance from year to year.

For example : At present, corporate sector links the hike in salary to the performance.

(b) PRODUCTIVITY LINKED WAGE INCENTIVES :  

Several plans are adopted by the organisations to increase the output, higher the output, higher the salary and wages.

For example : Differential wage rate system as suggested by Taylor.

(c)BONUS :  

It is a financial incentives which is given over and above salary and wages. Normally it is given at the time of festivals.

For example : Bonus is given by many companies during the festival of Diwali.

NON FINANCIAL / NON MONETARY INCENTIVES :  

Incentives which are not measurable in terms of money are called non monetary incentives like security of service, opportunities for promotion, good working conditions, recognition and praise, etc.  

(a) STATUS :  

Status means position or rank of a person in the organisation. Everybody has a wish for a higher status. This incentive satisfies psychological and social needs of an individual.

(b) ORGANISATIONAL CLIMATE :  

Organisational climate carries individual autonomy, reward orientation, consideration to employees, risk taking, etc., if managers take positive note of such characteristics, it helps to be build better climate.

(c)CAREER ADVANCEMENT OPPORTUNITIES :  

Managers provide subordinates to grow professionally with the help of skill development program, sound promotion policy, sending them for training programmes, workshops, etc.

HOPE THIS ANSWER WILL HELP YOU…

 

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