Q. Explain the three kind’s non-financial incentives?
Non-Financial incentives: Incentives which cannot be offered in terms of money are known as non-¬financial incentives. Individual Incentives:
1. Status: We are living in a status system. Status refers to the ranking of people from the viewpoint of organisation. Status means ranking of positions, rights, duties, responsibilities of employees in an organisation. Status is one of the most important non-financial incentives. Good many managers are status-conscious. Every organisation is wedded to a status system; organisation cannot exists without status distinctions. It should be noted that an increase in status will automatically result in increase in pay.
2. Promotion: Promotion is defined as a vertical movement of employees in hierarchy. Promotion is a widely used incentive in most of the organisations. But, promotion depends on performance, the skills, competencies, and faculties of employees. That is the reason why only some people get promotion.
3. Responsibility: Many people have strong performance for challenging and responsible jobs and dislike monotonous, dull and boring tasks. If the job is more responsible it satisfies those people who are enthusiastic, dynamic and versatile in encountering the challenging assignments. Increase in responsibility is one kind of non-financial incentive to the employee.
4. Recognition of work: Good many people have an inherent feeling that their work must be recognized and acknowledged. Appreciation and applause are the chief ways of recognising the hard work done by the employee. Such appreciation motivates employees. For example, a part on the back for doing work in an efficient fashion will bring more happiness to the employee than the ritual increment in pay.
5. Job security: The first preference for all the employees is the job security. Certain stability in the job ensures future income and the employee is motivated by the consideration of 'job security'. Of course one negative point is also associated with job security, i.e., when people feel that they are not likely to be thrown out, they become complacent.