ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Several organizations offer perquisites and fringe benefits such as accommodation, car allowance, medical facilities, education facilities, recreational facilities, etc. in addition to the salary and allowances to its employees. These incentives also motivate the employees to work efficiently.

Detailed explanation-2: -Compensation Management is an organized practice that involves balancing the work-employee relation by providing monetary and non-monetary benefits to employees. Compensation includes payments such as bonuses, profit sharing, overtime pay, recognition rewards and sales commission.

Detailed explanation-3: -Monetary incentives may offer short-term benefits but involve significant downsides. Non-monetary incentives, on the other hand, can shift your company culture, especially if the benefits package is constructed with your employees in mind. Monetary incentives can help you recruit and reward employees, to an extent.

Detailed explanation-4: -We might be motivated by the lure of financial rewards like bonuses, pay hikes, and other monetary benefits. We also might be motivated by recognition, reward, fame, and glory. Thirdly, there are some of us who are motivated by the fulfillment that comes from doing a good job.

Detailed explanation-5: -Use rewards that interest your employees. You can’t incentivize people to take action if you’re not offering a reward they actually want. Be fair. Use a mix of tangible and intangible rewards. Give both personal and team rewards. Ensure employees know why they are being rewarded. 23-Nov-2021