Which among the following is not a non-financial incentive?

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Provident fund, pension, and gratuity.

Option (1) Rewards, recognition and prestige of job. — A non-financial incentive (Incorrect). These give a person status and self-respect, which satisfy esteem needs.
Option (2) Provident fund, pension, and gratuity. — Not a non-financial incentive (Correct). These are retirement benefits, paid in money after service ends, so they are financial incentives.
Option (3) Individual autonomy, consideration to employees, and risk tasking. — A non-financial incentive (Incorrect). These are features of the organisational climate. Freedom at work and a caring management make people want to work better.
Option (4) Skill development programmes and sound promotion policy in the organisation. — A non-financial incentive (Incorrect). These create career advancement opportunity. The chance to grow and be promoted spurs employees to perform better.

Note: It seems that there is a mistake in the original NTA paper, which prints “risk tasking” in Option (3) when it should read “risk taking”. The slip is NCERT’s own: the book prints “risk-tasking” in the same list, and NTA copies lines from NCERT word for word, even where the book is wrong. Read the word as “risk taking”.

NCERT (2026-27 Edition): “(ii) 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.”

“Financial and Non-Financial Incentives … (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. …”