Question

Explain the following non-financial incentives :

(i) Status

(ii) Organisational climate

(iii) Job security

Hint:

Define non-financial incentives, then explain status as rank and respect, organisational climate as the work environment, and job security as assurance of a continuing job.

Answer 1

Step 1: Understand the question:
Non-financial incentives satisfy the social and psychological needs of employees, and they are given other than in the form of money.
We explain each of the three in two points.

Step 2: (i) Status:
Status means the position or rank of a person in the organisation, along with the authority, responsibility and prestige attached to it.
People want to be seen as important. A higher status raises their self-respect and urges them to work harder to earn it.

Step 3: (ii) Organisational climate:
It means the characteristics that make one organisation different from another and that influence the behaviour of its people. These include the degree of autonomy, the style of leadership and the relationships at work.
A healthy climate with trust, freedom and recognition makes employees feel valued, so they give their best.

Step 4: (iii) Job security:
Employees want assurance that their job will continue and that they will earn a regular income.
This assurance removes fear of losing the job, so the employee works with a calm mind and stays loyal to the firm.

Final Answer:
Status satisfies the need for position, organisational climate creates a healthy work setting, and job security gives stability. All three motivate employees without money.