Under this financial incentive, employees are offered company shares at a set price which is lower than market price. Name the incentive.
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - Co-partnership.
Under Co-partnership financial incentive, employees are offered company shares at a set price which is lower than market price.
Co-partnership/ Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than market price. Sometimes, management may allot shares in line of various incentives payable in cash. The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organisation. In Infosys the scheme of stock option has been implemented as a part of managerial compensation.
OTHER OPTIONS
* Bonus: Bonus is an incentive offered over and above the wages/ salary to the employees.
* Profit Sharing: Profit sharing is meant to provide a share to employees in the profits of the organisation. This serves to motivate the employees to improve their performance and contribute to increase in profits.
* Status: In the organisational context, status means ranking of positions in the organisation. The authority, responsibility, rewards, recognition, perquisites and prestige of job indicate the status given to a person holding a managerial position. Psychological, social and esteem needs of an individual are satisfied by status given to their job.