Q. Non financial incentives?

The Financial or pecuniary incentives are monetary in the nature as they involve flow of money from the organization to its staff. The examples of pecuniary benefits are wages, salaries, allowances, bonus, efforts towards tasks etc. On the other hand, non pecuniary incentives do not involve much financial commitments on the part of the organization. They do not add to the money income of those who receive them. They take the form of job enrichment, participative management, praise, opportunity for the growth etc. the financial incentives may be distinguished from the non financial incentives on the following groups:

1. Financial or monetary incentives may be distinguished from the non financial incentives are meant to satisfy those needs which money can buy. The needs for foods, clothing and shelter can be fully satisfied by money, but the needs for security, social affiliation and status can be partially satisfied by money, but the needs of security, meant for the satisfaction of those needs which can't be satisfied by the money. The examples are higher level needs such as status, ego, sense of responsibility, career achievements, autonomy, self actualization etc.

2. Financial incentives are tangible, visible and measurable. They have a direct effect on the organization and the members. But the non financial incentives are intangible and they have an indirect influence on the organization and the members.

3. Financial incentives are determined by reference to several factors such as job evaluation, cost of living trends, fringe benefits offered by competitors agreement b/w the employers and the employees, etc. Non financial incentives are based on the nature of jobs, strength of aspirants and urges of employees and behavioural orientation of management.

4. Financial incentives are generally used to motivate workers and outer non managerial employees. But non financial incentives are used to motivate managerial and other higher level personnel. They are also used to supplement and support the pecuniary incentives in the organizations.