Shan works as an Assistant Accounts Officer in a company. He feels proud of the fact that he is the in charge of recreation committee in his office. Identify the type of incentive being offered to Ishan.

Employee Participation

The correct answer is Option 4: Employee Participation

Employee participation involves involving employees in decision-making processes related to issues that affect them. In Ishan's case, being in charge of the recreation committee allows him to actively participate in organizing recreational activities for his colleagues. This involvement gives him a sense of empowerment and ownership in the decision-making process within the organization, contributing to his psychological and emotional satisfaction. 

All the given options are non financial incentives given to employees in an organisation. 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. These non financial incentives are explained below:

Employee participation: It means involving employees in decision making of the issues related to them. In many companies, these programmes are in practice in the form of joint management committees, work committees, canteen committees etc.

Organisational Climate: 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.

Employee Empowerment: Empowerment means giving more autonomy and powers to subordinates. Empowerment makes people feel that their jobs are important. This feeling contributes positively to the use of skills and talents in the job performance.

Employee Recognition programmes: Most people have a need for evaluation of their work and due recognition. They feel that what they do should be recognised by others concerned. Recognition means acknowledgment with a show of appreciation. When such appreciation is given to the work performed by employees, they feel motivated to perform/work at higher level. Some examples of employee recognition are:

a. Congratulating the employee for good performance.

b. Displaying on the notice board or in the company news letter about the achievement of employee.

c. Installing award or certificate for best performance.

d. Distributing mementos, complimentaries like T-shirts in recognition of employee services. n Rewarding an employee for giving valuable suggestions.