Explain the three kind’s non-financial incentives, Financial Management

Assignment Help:

Q. Explain the three kind’s non-financial incentives?

Non-Financial incentives: Incentives which cannot be offered in terms of money are known as non-¬financial incentives. Individual Incentives:

1. Status: We are living in a status system. Status refers to the ranking of people from the viewpoint of organisation. Status means ranking of positions, rights, duties, responsibilities of employees in an organisation. Status is one of the most important non-financial incentives. Good many managers are status-conscious. Every organisation is wedded to a status system; organisation cannot exists without status distinctions. It should be noted that an increase in status will automatically result in increase in pay.

2. Promotion: Promotion is defined as a vertical movement of employees in hierarchy. Promotion is a widely used incentive in most of the organisations. But, promotion depends on performance, the skills, competencies, and faculties of employees. That is the reason why only some people get promotion.

3. Responsibility: Many people have strong performance for challenging and responsible jobs and dislike monotonous, dull and boring tasks. If the job is more responsible it satisfies those people who are enthusiastic, dynamic and versatile in encountering the challenging assignments. Increase in responsibility is one kind of non-financial incentive to the employee.

4. Recognition of work: Good many people have an inherent feeling that their work must be recognized and acknowledged. Appreciation and applause are the chief ways of recognising the hard work done by the employee. Such appreciation motivates employees. For example, a part on the back for doing work in an efficient fashion will bring more happiness to the employee than the ritual increment in pay.

5. Job security: The first preference for all the employees is the job security. Certain stability in the job ensures future income and the employee is motivated by the consideration of 'job security'. Of course one negative point is also associated with job security, i.e., when people feel that they are not likely to be thrown out, they become complacent.


Related Discussions:- Explain the three kind’s non-financial incentives

Leveraged buyout (lbo), Leveraged Buyout (LBO) Acquisition of an organi...

Leveraged Buyout (LBO) Acquisition of an organization through the accumulation of 70 % or more of the organizations total capitalized debt.

How is present value affected by a change in discount rate, How is present ...

How is present value influenced by a change in the discount rate? Present value is oppositely related to the discount rate.  Alternatively, present value moves in the reverse dire

Advantage of weighted average cost of capital, Advantage of Weighted Averag...

Advantage of Weighted Average Cost of capital 1) Straight Forward and logical: Weighted Average ost of Capital defines the oveall cost of capital as the sum of the cost of t

Lease, Lease A lease is a contractual arrangement allowing one party th...

Lease A lease is a contractual arrangement allowing one party the use of some exact assets for a specific times period in exchange for a payment it is same as a rental arrangem

Marketing, How to use integrated promotional mix to achieve marketing objec...

How to use integrated promotional mix to achieve marketing objectives

Define supply curve for a good is totally inelastic, Suppose the supply cur...

Suppose the supply curve for a good is totally inelastic.  If the government imposed a price ceiling below the market-clearing level, would a deadweight loss result?  Explain.

Public finance, suppose perfect competition prevails in the market for hote...

suppose perfect competition prevails in the market for hotel rooms. the current market equilibrium price of a stanar hotel room is 100 per night

Define market value in modigliani miller equation, Define in the Modigliani...

Define in the Modigliani-Miller equation (MM equation), why is the market value of the levered firm greater as compared to the market value of an equivalent unlevered firm? Th

Bonds/debentures, Bond are formal certificates issued by the companie...

Bond are formal certificates issued by the companies or government agencies acknowledging the indebtedness. To the investors, they are proofs of investment. In th

Effect of volatility and the arbitrage free value, The volatility ass...

The volatility assumption has a great influence on the arbitrage free value of the bond. The higher the expected volatility, the greater the value of an option. W

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd