Which of the following is not a non financial incentive:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Perquisites
Option (1) Job Enrichment — A non-financial incentive (Incorrect). The job is made more interesting and challenging, with more variety and more freedom.
Option (2) Employee Recognition programmes — A non-financial incentive (Incorrect). Praise, certificates or an “employee of the month” honour satisfy the need for respect.
Option (3) Career Advancement Opportunity — A non-financial incentive (Incorrect). The chance to grow into higher posts motivates the employee to improve his skills.
Option (4) Perquisites — Not a non-financial incentive (Correct). Perquisites, or perks, are benefits such as a car allowance, housing and medical aid, given over and above the salary. They can be measured in money, so they are a financial incentive.
NCERT (2026-27 Edition): “Perquisites: In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children, etc., over and above the salary. These measures help to provide motivation to the employees/ managers.” |