Question

State any three financial incentives which may be used to motivate people.

Hint:

Name any three from pay and allowances, bonus, profit sharing, co-partnership, retirement benefits and perquisites.

Answer 1

Step 1: Understand the question:
Financial incentives are cash or cash related rewards given to motivate employees.
We must state any three of them, with one line of meaning each.

Step 2: Incentive 1: Pay and allowances:
These include basic pay, dearness allowance and other allowances.
They are the first need of an employee and a base for all other motivation.

Step 3: Incentive 2: Bonus:
Bonus is a reward paid over and above the wages or salary for good performance.
It gives workers a reason to perform better.

Step 4: Incentive 3: Profit sharing:
Under this, employees get a share in the profit of the organisation.
It makes them take interest in the profit of the firm.

Final Answer:
Three financial incentives are pay and allowances, bonus and profit sharing.