Question

Explain the following non-financial incentives which motivate employees for higher performance:
(i) Employee Recognition Programs
(ii) Status

Answer 1

Non-financial Incentives Motivating Employees for Higher Performance:
(i) Employee Recognition Programs: Employee recognition programs are non-financial incentives where employees are acknowledged for their outstanding work and contributions. Recognition can be in the form of awards, certificates, or public appreciation during meetings. These programs make employees feel valued and appreciated, boosting morale and encouraging high performance.

(ii) Status: Providing employees with higher status within the organization is a motivational tool. This could be in the form of titles, prestigious roles, or decision-making authority. Higher status leads to increased respect from peers and boosts an individual’s sense of accomplishment, driving them to maintain or improve their performance.