Welcome to the NCERT Solutions for Class 12 Business Studies - Chapter Directing. This page offers a step-by-step solution to the specific question from Exercise 3, Question 4: . With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.
Explain different financial and non-financial incentives used to motivate employees of a company?
Financial incentives, which are in direct monetary from or measurable in monetary incentive. It includes basic pay, dearness allowance, house rent allowance, etc. some organisations provide pay hikes and increments for better performance.
The different financial incentive plans to motivate employees are:
Pay and allowance: For every employee, salary is the monetary incentive. It includes basic pay, dearness allowance, house rent allowance, etc. some organisations provide pay hikes and increments for better performance.
Productivity linked wage incentives: In this incentive, rewards are given to employees as a percentage of sales achieved. Its advantage is that reward is directly related to performance.
Bonus: It is a one time reward for high performance. Bonus may be paid in cash or kind over and above the salary. E.g. performance bonus, 100% attendance bonus, festive bonus etc.
Retirement benefits: Several retirement benefits such as provident fund, pension, and gratuity are provided to the employees as a financial security after retirement.
Perquisites: Apart from basic salary, some companies offer fringe benefits and perquisites to employees, e.g. perks like rent free accommodation, education of children, medical allowance, car allowance, etc to motivate their staff.
Non-financial incentives: All the needs of individuals are not satisfied by money alone. Psychological, social and emotional factors also play an important role in motivating employees. The incentives which are provided to satisfy these needs are termed as non-financial incentives. Some of the important non-financial incentives are listed below:
Status: In business terms, status means ranking of positions in the organisation. The authority, responsibility, rewards, recognition, perquisites and prestige of a job indicate the status given to a person holding a managerial position. It satisfies the psychological and social needs of an individual.
Job enrichment: It is concerned with designing of jobs that include a greater variety of work content, requiring a higher level of knowledge and skill. This provides opportunity for growth and development of an employee on one hand and more autonomy and responsibility on the other, which becomes a source of motivation to the individual.
Job security: It ensures stability of income and work, which motivates an individual to work with great zeal. However, it has one negative aspect that is it makes individuals feel that they are not likely to lose their job and hence may become complacent and careless.
Employee participation: It means involving employees in decision making regarding the issue related to them. E.g. encourage participation in joint management committees, etc.
Employee empowerment: It means giving more autonomy and power to subordinates. It makes people feel that their jobs are important, as a result of which, they contribute positively to the use of skills and talents in the job performance.
NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:
Stay updated with our latest educational content and study tips
Online gaming has rapidly become one of the most popular pastimes among children. Whether it’s multiplayer mobile games , PC adventures or console challenges , kids are spending more time than ever in the virtual world . On the surface, gaming seems entertaining and even educational – improving hand- eye coordination , teamwork and problem […]
Read MoreKids today are surrounded by screens from the moment they wake up . Whether it’s smart classrooms, online lessons or video games with friends technology has quietly become a part of everything they do. It’s amazing how much they can learn, explore and create with just a tap or a click. But it also brings […]
Read MoreThe internet is full of entertaining apps, games and movies for kids of all ages. However not everything online is safe. Hidden among these entertaining platforms are internet frauds that target children with phony gifts, free game currencies or friendly looking people. As a parent, you may believe that scammers only target adults; yet children […]
Read MoreDid you know? The average teenager spends 7 – 8 hours daily on screens . That’s almost like working a full – time job in front of a screen – except kids aren’t earning a paycheck; instead they’re often trading sleep, focus and health for digital time. In today’s world, screens are everywhere – TV, […]
Read MoreWelcome to the NCERT Solutions for Class 12 Business Studies - Chapter . This page offers a step-by-step solution to the specific question from Excercise 3 , Question 4: Explain different financial and non-financial incentives used to motivate employees of a company?....
Add Comment