ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Salary – It is the basic Financial Incentive for any employee to work diligently for the organisation. It includes components like basic pay, house rent allowance, dearness allowance and other such benefits. Bonus – It is a consolidated amount that an employee gets from the organisation for performing well.

Detailed explanation-2: -Incentive pay refers to giving employees bonuses or other forms of compensation in exchange for going above and beyond their normal duties. It is used as a way to incentivise employees to continue doing excellent work.

Detailed explanation-3: -Employee incentives are monetary or non-monetary (but still tangible) rewards, like points or gift vouchers, designed to motivate and engage employees. Striving for ambitious goals, managing tight deadlines, or improving efficiencies are all scenarios in which an incentive could be a valuable investment for a company.

Detailed explanation-4: -Compensation incentives. Compensation incentives tend to cover some of the more basic incentive options. Recognition incentives. Reward Incentives. Appreciation incentives.

Detailed explanation-5: -Economic Incentives – Material gain/loss (doing what’s best for us) Social Incentives – Reputation gain/loss (being seen to do the right thing) Moral Incentives – Conscience gain/loss (doing/not doing the ‘right’ thing) 15-Jun-2014