The Financial Incentives are:
(A) Bonus
(B) Co-partnership
(C) Status
(D) Perquisites
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A), (B) and (D) only
(A) Bonus — Correct. A bonus is a financial incentive: extra money paid over and above the salary.
(B) Co-partnership — Correct. Under co-partnership or stock option, employees are given shares of the company, often at a lower price. The shares have a money value.
(C) Status — Incorrect. Status is the rank of a position in the organisation. It meets the need for respect and is a non-financial incentive, which satisfies psychological and social needs, not a money need.
(D) Perquisites — Correct. Perquisites or fringe benefits, such as a car, a house or medical aid, are provided over and above the salary, and each has a money value.
NCERT (2026-27 Edition): “Financial Incentives: … Financial incentives refer to incentives which are in direct monetary form or measurable in monetary term and serve to motivate people for better performance. These incentives may be provided on individual or group basis. The financial incentives generally used in organisations are listed below:” “(iii) Bonus: Bonus is an incentive offered over and above the wages/ salary to the employees.” “(v) Co-partnership/ Stock option: Under these incentive schemes, employees are offered company shares at a set price which is lower than market price. …” “(vii) Perquisites: In many companies perquisites and fringe benefits are offered such as car allowance, housing, medical aid, and education to the children, etc., over and above the salary. …” “Non-Financial Incentives: … (i) Status: In the organisational context, status means ranking of positions in the organisation. …” |