Explain the following non-financial incentives.
(i) Status
(ii) Organisational climate
(iii) Career advancement opportunities
Types of non-financial incentives:
(i) Status
In business terms, status means ranking of positions in the organisation. The authority, responsibility, rewards, recognition, perquisites and prestige of job indicate the status given to a person holding a managerial position. It satisfies psychologial and social needs of an individual.
(ii) Organisational Climate
Better conditions in an organisation like individual autonomy, reward orientation, consideration to employees, risk taking, etc provide an organisation to be different from the other organisations.
Positive measures taken in these aspects helps to develop better organisational climate.
(iii) Career Advancement Opportunity
When employees are provided opportunities to grow in status and responsibility, they are satisfied and are committed to organisational goals.
Appropriate skill development programmes and sound promotion policy help employees to improve their skills and be promoted to higher levels and exhibit improved performance.
(iv) Job Enrichment
It is concerned with designing of jobs that include greater variety of work content, requiring 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.
(v) Employee Recognition Programmes
Recognition means acknowledgement of work with a show of appreciation. With such appreciation, employees feel motivated. It can be done in the following ways:
(a) Congratulating an employee for his/her good performance.
(b) Display on notice board or newsletter of the company about the achievement of the employee.
© Giving award/certificate for best performance.
(d) Distributing momentos, complimentaries like T-shirts, caps, bags, etc.
(e) Rewarding an employee for giving valuable suggestions.
(vi) Job Security
It ensures stability of income and work, which motivates an individual to work with great zeal. However, it has one negative aspect i.e. it makes individuals feel that they are not likely to lose their jobs and hence may become complacent and careless. -
(vii) Employee Participation
It means involving employees in
decision-making regarding the issues related to them. e.g. encourage participation in joint management committees, work committees, canteen committees, etc.
(viii) Employee Empowerment
It means giving more autonomy and powers 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 (vi) Job Security
It ensures stability of income and work, which motivates an individual to work with great zeal. However, it has one negative aspect i.e. it makes individuals feel that they are not likely to lose their jobs and hence may become complacent and careless. -
(vii) Employee Participation
It means involving employees in
decision-making regarding the issues related to them. e.g. encourage participation in joint management committees, work committees, canteen committees, etc.
(viii) Employee Empowerment
It means giving more autonomy and powers 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 (vi) Job Security
It ensures stability of income and work, which motivates an individual to work with great zeal. However, it has one negative aspect i.e. it makes individuals feel that they are not likely to lose their jobs and hence may become complacent and careless. -
(vii) Employee Participation
It means involving employees in
decision-making regarding the issues related to them. e.g. encourage participation in joint management committees, work committees, canteen committees, etc.
(viii) Employee Empowerment
It means giving more autonomy and powers 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.