Page 1 - Microsoft Word - Home assignment 19 Directing Meaning Importance
P. 1
SAI INTERNATIONAL SCHOOL
th
Class-12
Business studies
Chapter – 7, Directing
Topics: Financial and Non-Financial Incentives
(Lesson - 22)
Financial and Non-Financial Incentives
Incentive means all measures which are used to motivate people to
improve performance. These incentives may be broadly classified as
financial and non financial.
Financial Incentives: In the context of existing economic system, money
has become a means to satisfy the physical needs of daily life and also
of obtaining social position and power. Since, money has the
purchasing power; it becomes a very important incentive for every
individual.
Meaning: Financial incentives refer to incentives which are in direct
monetary form or measurable in monetary term and serve to motivate
people for better performance. These incentives may be provided on
individual or group basis. The financial incentives generally used in
organizations are listed below:
