Page 3 - Microsoft Word - Home assignment 19 Directing Meaning Importance

Example: In Infosys the scheme of stock option has been

implemented as a part of managerial compensation.

(vi) Retirement Benefits: Several retirement benefits such as

provident fund, pension, and gratuity provide financial security

to employees after their retirement. This acts as an incentive

when they are in service in the organization.

(vii) Perquisites: In many companies perquisites and fringe benefits

are offered such as car allowance, housing, medical aid, and

education to the children etc., over and above the salary. These

measures help to provide motivation to the employees/

managers.

All the needs of individuals are not satisfied by money alone.

Psychological, social and emotional factors also play important role

in providing motivation. Non financial incentives mainly focus on

these needs.

Sometimes, monetary aspect may be involved in non-financial

incentives as well. However, the emphasis is to provide psychological

and emotional satisfaction rather than money driven satisfaction.

For example, if an individual gets promotion in the organization, it

satisfies him psychologically more as he gets a feeling of elevation,

increase in status, increase in authority, challenge in the job etc.,