ECONOMICS
INCENTIVES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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demotivate
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link
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help
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motivate
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Detailed explanation-1: -A financial incentive is defined as: a monetary benefit offered … to encourage behaviour or actions which otherwise would not take place. A financial incentive motivates actions which otherwise might not occur without the monetary benefit.” ➢It is a policy instrument for the State.
Detailed explanation-2: -Monetary incentives include profit sharing, project bonuses, stock options and warrants, scheduled bonuses (e.g., Christmas and performance-linked), and additional paid vacation time. Traditionally, these have helped maintain a positive motivational environment for associates.
Detailed explanation-3: -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.
Detailed explanation-4: -Stock Incentive is a financial incentive.