‘Shanta Enterprises’ was in the business of manufacturing solar panels for the last fifteen years. With their expertise now they were able to manufacture good quality solar panels at lower cost. As a result ‘Shanta Enterprises’ was flooded with orders and was able to generate a good profit margin.
To motivate the employees the company decided to compensate some of them for their hard work. Arvind and Yogesh, who were working on contract basis, were absorbed permanently in the company. Both were happy as now there was stability about their future income. Ekta, a regular employee of the company, working as Research and Development Head, was awarded the ‘Best Employee of the year Award’.
Identify and explain the incentives given by Shanta Enterprises to its employees.
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Solution and Explanation
1. Financial Incentive (Job Security): Arvind and Yogesh, initially on contract, were given permanent jobs. This provided them with financial stability and long-term assurance, which is a direct financial motivator.
2. Non-Financial Incentive (Recognition): Ekta, working as R and D Head, was awarded "Best Employee of the Year." This kind of recognition boosts morale, provides a sense of achievement, and reinforces productive behavior. It’s a non-monetary incentive with powerful motivational impact.
State the needs of the employees being met by such incentives as per Maslow’s Need Hierarchy Theory.
Solution and Explanation
According to Maslow, human needs are arranged in a hierarchy. Shanta Enterprises addressed the following:
Safety Needs: By offering permanent employment, the company ensured Arvind and Yogesh felt secure about their future. This reduced fear of job loss and financial instability.
Esteem Needs: By recognizing Ekta’s work through an award, the organisation fulfilled her need for appreciation and status. Such gestures enhance self-confidence and respect among peers.
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