Which of the following statements about non-financial incentives is incorrect?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Promotion is a financial incentive because it involves payment of extra money.
Option (1) Non-financial incentives mainly focus on psychological, social and emotional needs. — True. Money alone does not meet every need. Non-financial incentives mainly try to meet psychological, social and emotional needs.
Option (2) Sometimes, a monetary aspect may be involved in non-financial incentives as well. — True. A non-financial incentive may carry some money too. But its stress is on psychological and emotional satisfaction, not on money.
Option (3) Promotion is a financial incentive because it involves payment of extra money. — False. Promotion does bring extra pay. But the person values more the feeling of elevation, higher status, more authority and challenge in the job. These non-monetary aspects over-ride the money, so promotion is a non-financial incentive.
Option (4) Job enrichment gives workers more autonomy and responsibility and the opportunity for personal growth. — True. Job enrichment designs jobs with more variety of work, higher skill, more autonomy and responsibility and a chance for personal growth. The job itself then motivates the worker.
NCERT (2026-27 Edition): “Non-Financial Incentives: All the needs of individuals are not satisfied by money alone. Psychological, social and emotional factors also play important role in providing motivation. Non-financial incentives mainly focus on these needs. Some times, monetary aspect may be involved in non-financial incentives as well. However, the emphasis is to provide psychological and emotional satisfaction rather than money driven satisfaction. For example, if an individual gets promotion in the organisation, it satisfies him psychologically more as he gets a feeling of elevation, increase in status, increase in authority, challenge in the job etc., Though promotion involves payment of extra money, non-monetary aspects over-ride monetary aspects. …” “(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. If jobs are enriched and made interesting, the job itself becomes a source of motivation to the individual.” |