question_answer

Ela is running a successful business of providing high-end beauty services to If upper section of society. Her parlour boasts of innovative beauty products. She has an in-house training programme for new employees. Also, she believes in high standards of performance and shares her profits with her employees. She also gives them yearly bonus and salary hikes. But still she feels that her employees are not as motivated as she wants them to be.

(i) Are financial incentives the only way to motivate employees?

(ii) What are non-monetary incentives?

(iii) State any four non-monetary incentives which contribute to the performance of employees.

Answer:

(i) No, financial incentives are not the only way to motivate employees. Employees can also be motivated with the help of non-monetary incentives. (ii) Non-monetary Incentives These are not directly related with money. These incentives help in the satisfaction of top hierarchy needs like respect, self-actualisation, etc. (iii) Following are the four important types of non-monetary incentives: [a] Status It means the position or rank of a person in the organisation. It can be high or low. The rank of an employee is directly linked with his authority, responsibility and other facilities (e.g. A separate cabin, costly furniture, car, peon, PA, etc). Everybody has a wish for a higher status. Therefore, the employees can be motivated by raising their rank or position. The attainment of a higher status fulfils the psychological, social and esteem needs. [b] Career Advancement Opportunity Every employee of the organisation wants to advance in his life. Promotion is an important example of advancement. When the avenues for promotion are available, the employees certainly get motivated. [c] Employee Recognition Programmes Every employee wishes to be considered as an important part of the organisation. It means that he should have his own identity and he should appear to be distinctive. The manager should distribute work among the employees in such a manner which gives a feeling to every employee that his work is special and he alone is capable of doing it. By getting such kind of importance, they are motivated and work harder in a more responsible manner. [d] Employee Participation Employees get encouraged if they are allowed to participate in managerial works. Therefore, they offer their full cooperation in making successful the policies prepared with their help.