Identify the example of financial incentive that is used to motivate the individuals at job.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Retirement Benefits
Option (1) Career Advancement Opportunity — Incorrect. A chance to grow and get promoted. It is a non-financial incentive.
Option (2) Job Security — Incorrect. A feeling of safety in the job. It is not paid in direct money form, so it is a non-financial incentive.
Option (3) Retirement Benefits — Correct. Provident fund, pension and gratuity are in direct monetary form, so they are financial incentives.
Option (4) Job Enrichment — Incorrect. Designing jobs with more variety, skill and responsibility. It is a non-financial incentive.
NCERT (2026-27 Edition): “Financial Incentives: … Financial incentives refer to incentives which are in direct monetary form or measurable in monetary term and serve to motivate people for better performance. These incentives may be provided on individual or group basis. …” “(vi) Retirement Benefits: Several retirement benefits such as provident fund, pension, and gratuity provide financial security to employees after their retirement. This acts as an incentive when they are in service in the organisation.” “(iii) Career Advancement Opportunity: Every individual wants to grow to the higher level in the organisation. Managers should provide opportunity to employees to improve their skills and be promoted to the higher level jobs. …” “(iv) Job Enrichment: Job enrichment is concerned with designing jobs that include greater variety of work content, require higher level of knowledge and skill; give workers more autonomy and responsibility; and provide the opportunity for personal growth and a meaningful work experience. …” |