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

Is conservatism an investment strategy, Q. Is Conservatism an investment st...

Q. Is Conservatism an investment strategy? Conservatism - An investment strategy aimed at long-term capital appreciation with low risk; moderate; cautious; opposite of aggressi

Evaluate the fair value of the net assets, IFRS 3 Business combinations n...

IFRS 3 Business combinations necessitate goodwill on gaining to be calculated at the date control is gained. The second gaining gives ROB a 75% holding and consequently control o

Evaluate alternative hedging strategies, Peak Inc. needs to order Canadian ...

Peak Inc. needs to order Canadian raw materials to use in its production process. The Canadian exporter typically invoices Peak in Canadian dollars. Assume that the current exchang

Determine the expected net present, Karl Robinson is about to make his firs...

Karl Robinson is about to make his first major decision as president and chief executive officer of Conway Control & Instrument Corporation, a manufacturer of electronic test instr

Interpretations of short term solvency or liquidity ratio''s, Short Term So...

Short Term Solvency or Liquidity Ratio's   CR:          The Current Ratio is calculated by current assets to current liabilities and is the index of company's financial stab

Leverage, what is the meaning of market feasibility? What are its different...

what is the meaning of market feasibility? What are its different types with their degree?

Option based valuation approach, When an investor purchases non-calla...

When an investor purchases non-callable or non-putable convertible bonds, he would be buying a non-callable/non-putable straight security and also buying a call o

Risks associated with investing in bonds, Interest rate risk is the risk wh...

Interest rate risk is the risk wherein the investor in bonds faces the risk of a fall in his bond price as and when there is a rise in the market interest r

Describe the benefits of wealth maximisation criterion, Describe the benefi...

Describe the benefits of Wealth maximisation criterion Value of an asset must be viewed in terms of the benefits it can produce. Worth of a course of action can similarly be ju

Macro-economic analysis, Macro-Economic Analysis Measuring the Level o...

Macro-Economic Analysis Measuring the Level of Economic Activity Gross National Product (GNP) and the Gross Domestic Product (GDP) are the two most widely used aggregates

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