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 are offered shares at a price lower than the market price.'

Financial incentives identified above is:

Co-partnership/Stock option

The correct answer is option 2- Co-partnership/Stock option.

The financial incentive described in the statement "Employees are offered shares at a price lower than the market price" is Co-partnership/Stock option. This refers to giving employees the opportunity to purchase company shares at a discounted price, which aligns with the concept of stock options or co-partnership, where employees are given a stake in the ownership of the company, often at a price lower than market value. This incentive aims to motivate employees by linking their financial interests to the success of the organization.

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.