Rajat, Raman and Rohan have just passed out of college. Rajat wants to pursue career in government job, as it provides job security. He is excited about the work undertaken by the government sector employees. Raman wants to work with a company which has a clear development plan and helps the employees to grow to higher levels in the organisation. He will prefer the company which provides him with post retirement benefits. He is looking for perks as holiday packages, medical benefits, car allowance, housing, medical aid, and education to the children. Rohan’s preference for work is with an organisation, which has a culture of individual autonomy, opportunity for personal growth and meaningful work experience. Rohan is looking to focus on long term career growth, he is interested in joining at the firm where he would be given exciting and thrilling tasks to accomplish.
“He is looking for perks as holiday packages, medical benefits, car allowance, housing, medical aid, and education to the children”. The type of incentive that is being discussed here is:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Perquisites
Option (1) Perquisites — Correct. Perquisites, or perks, are fringe benefits over and above the salary, such as car allowance, housing, medical aid and education for the children. They are a financial incentive.
Option (2) Retirement benefits — Incorrect. Provident fund, pension and gratuity give security after retirement. Raman does want these, but the benefits in this line are enjoyed while in service.
Option (3) Stock Option — Incorrect. A stock option lets employees buy the company’s shares at a price lower than the market price. None of the listed benefits is a share.
Option (4) Pay — Incorrect. Pay is the basic salary with its allowances. Perks come on top of it.
NCERT (2026-27 Edition): “(i) Pay and allowances: For every employee, salary is the basic monetary incentive. It includes basic pay, dearness allowance and other allowances. …” “(v) 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. …” “(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. |