Question

Explain the following non-financial incentives :

(i) Status

(ii) Organisational climate

Hint:

Define status as ranking of positions and organisational climate as the features that distinguish one organisation from another, then show how each motivates.

Answer 1

Step 1: Understand the question:
Two non-financial incentives are to be explained: status and organisational climate.
Four marks means about two marks for each, so I give meaning and effect for both.

Step 2: Status:
Meaning: Status means the ranking of positions in the organisation. It shows in the authority, responsibility, rewards, recognition and prestige of a post.
Effect: People have a need for position and respect. When a person is given a higher status, he feels valued and works with more energy.
A higher status also brings perquisites and a wider scope of work, so employees try to earn it.

Step 3: Organisational climate:
Meaning: Organisational climate means the features that describe an organisation and make it different from others.
These features include individual autonomy, the degree of structure, the reward orientation, and the consideration shown to employees.
Effect: A healthy climate makes the staff feel happy and secure. They stay with the firm and perform better.

Final Answer:
Status (the ranking of a position) and organisational climate (the character of the organisation) both motivate employees through non-financial rewards.