Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Directing

Question:

Read the text given below and answer the questions.

Mr. Murthy is the chairman of a leading business organisation. He grabs all possible opportunities and leads the organisation by example and trust. He always motivates his team and introduced a number of motivational schemes like;

-Employees are offered shares at a price lower than the market price.

-Employees are given individual autonomy and rewards for performance.

He realises that satisfied and secured employees can best focus on organisational success. He ensures hiring competent people for various jobs. Every employee is required to undergo training, their jobs are well defined and regular feedbacks are provided so that their long term interest is also served.

In order to keep an eye on employees performance, a strategic decision was introduced that all communication must be recorded and filed in the office. He has also devised various ways to know the reactions of employees on different policies and decisions. As a result, employees are highly motivated, goals are achieved and organisation is growing.

"Employees were given individual autonomy and reward for performance".

Which non financial incentive is highlighted in the above statement?

Options:

Status

Organisational climate

Employee recognition

Career advancement opportunity

Correct Answer:

Organisational climate

Explanation:

Organisational climate indicates the characteristics which describe an organisation and distinguish one organisation from the other. These characteristics influence the behaviour of individuals in the organisation. Some of these characteristics are–individual autonomy, reward orientation, consideration to employees, risk-tasking, etc., If managers take positive measures regarding these aspects, it helps to develop better organisational climate.