Question

Explain the following non-financial incentives :

(i) Employee participation

(ii) Employee empowerment

Hint:

Participation means involving employees in decisions on matters that concern them. Empowerment means giving them more autonomy and powers.

Answer 1

Step 1: Understand the question:
Two non-financial incentives are to be explained: employee participation and employee empowerment.
For four marks I give the meaning and the effect of each.

Step 2: Employee participation:
Meaning: It means involving employees in decision making on issues that relate to them, such as work methods and working conditions.
How it works: Managers seek views through meetings, suggestion boxes or joint committees before they decide.
Effect: The employee feels that his opinion counts. He accepts the decision as his own and works hard to make it a success.

Step 3: Employee empowerment:
Meaning: It means giving more autonomy and powers to subordinates, so that they can take decisions in their own area of work.
How it works: The manager shares authority and trusts the staff to act, rather than checking each step.
Effect: Employees feel confident and responsible. They use their skills fully, which raises motivation and performance.

Final Answer:
Participation gives employees a voice in decisions. Empowerment gives them more powers to act. Both motivate without paying more money.