Identify which of the following is not a Non-financial Incentive:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Retirement Benefits
Option (1) Job Enrichment — A non-financial incentive (Incorrect). The job is made more interesting and challenging, with more variety and more scope for growth.
Option (2) Employee participation — A non-financial incentive (Incorrect). Employees take part in decisions on matters that concern them, which makes them feel valued.
Option (3) Retirement Benefits — Not a non-financial incentive (Correct). Provident fund, pension and gratuity are paid in money and give financial security after retirement. So this is a financial incentive.
Option (4) Job security — A non-financial incentive (Incorrect). Employees want to be sure of a steady job and income. This sense of safety motivates them, though no extra money is paid.
NCERT (2026-27 Edition): “(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.” “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. …” “(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. …” “(vi) Job security: Employees want their job to be secure. They want certain stability about future income and work so that they do not feel worried on these aspects and work with greater zeal. …” “(vii) Employee participation: It means involving employees in decision making of the issues related to them. …” |