State and explain examples of non-financial incentives.

      

State and explain examples of non-financial incentives.

  

Answers


Kavungya
1. Praise: Praise satisfies one's ego needs. Sometimes, praise is more effective than another incentive. We have seen that in industry, at home or elsewhere, people respond better to praise. However, this incentive should be used with greater degree of care because praising an incompetent employee would create resentment among competent employees. Or course, occasionally, a pat on the back of an incompetent employee may act as incentive to him for improvement.

2. Competition: Competition is a kind of non-financial incentive. If there is a healthy competition among the individual employees or group of employees, it will lead them to achieve their personal or group goals in a better way.

3. Opportunity for Growth: Opportunity for growth is another kind of incentive. If the employees are provided opportunities for their advancement and growth and to develop their personality, they feel very much satisfied and become more committed to the organizational goals.

4. Feedback: Knowledge of the result leads to employee satisfaction. A worker likes to know the result of his performance. He gets satisfaction when his superior appreciates the work he has done.

5. Workers' participation in Management: Employees participation in management provides an important incentive 'to the employees. It gives them psychological satisfaction that their voice is being heard because workers' participation in management provides for tow-way communication.

6. Suggestion System: Suggestion system is an incentive, which satisfies many needs of the employees. Many organizations, which use the suggestion system, make use of cash awards for useful suggestions. They, sometimes, publish the worker's name with his photograph in the company's magazine. This motivates the employees to be in search for something, which may be of greater use to the organization.
Kavungya answered the question on March 26, 2019 at 13:27


Next: Explain the characteristics of financial incentives.
Previous: What is power as it relates to electrical energy?

View More Principles of Management Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions