Page 3 - Home Assignment 4

3. What is meant by financial incentives? State any two financial incentives.

5/6 mark questions

Q.1 Differentiate financial and non financial incentives of motivation.

Q.2 Two friends, Ekta and Kritika, are working as managers in the

different departments of ‘libra Limited'. They often talk about the

performance level in their respective departments. Both of they are not satisfied

with their subordinates. They tried to ascertain when the employees got their full

salaries, what problem they had in working honestly. After investigating for some

days they arrived at the conclusion that there was lack of motivation in their

company. Both held a meeting together in order to find out the solution of the

problem.

Ekta suggested participation of the employees in the Company’s Profits, which

she thought would create in the employee’s the feeling of belongingness to the

company. Such a feeling, she was of the view, would ‘have a direct influence on

their performance level. Kritika, on the basis of her experience, said that if

the feeling of Job Security was aroused in the employees, there could be

improvement in their performance level. Both of them contacted their

Managing Director With their suggestions. All the three of them deliberated over

this issue. The Managing Director listened to them very attentively. He said,

"Both of you are right, but I too have a suggestion. If the employees are

made participants-in taking decisions, they win feel good and their

performance level w.ill improve". Ultimately, the company implemented the

suggestions of all the three of till them.