(i) Monetary Incentives: A monetary incentive is expressed in terms of money. It is very commonly
used in modern organisation to motivate the employees to increase their productivity. It consists of
wage payments, in excess of those paid to time rate workers, premiums, bonus, prizes and return on
investments. Monetary incentives should have a relevance to the financial and social needs of the
workers.
(ii) Non-Monetary Incentives: Non monetary incentives cannot be expressed in terms of money.
(i) Individual Incentives: (a) Status: It is the ranking of positions, rights and duties in the organisation. Research indicated the
fact that middle and higher level employees prefer escalations in status increments in pay.
(b) Promotion: It is the vertical movement of a person in the organisation. Promotion are accompanied
by increased responsibilities, enhanced prestige and power, usually since promotions depend on
good performance, most employees try to attain these if the organisation provides the opportunities.
(c) Responsibility : People want to handle responsible and challenging jobs. If the job is responsible,
it satisfied people in more than one way.
(d) Recognition of work: Managers can motivate people by using this in the ways. Show appreciation
when an individual does an outstanding job; compliment individuals infront of others; compliment
individuals when the incident is still fresh in their mind. Recognition and appreciation will have a
“tonic” effect on the psychology of employees.
(e) Interesting work: Jobs that are varied, pleasant and enjoyable motivate people throughly. Such
jobs allow people to satisfy their natural mestincts. Work in such cases becomes as natural as play
a recreation and stimulates people to reach greater heights.
(f) Job Security: People want to secure jobs. They want to be are about their future income and job
continuity. For the same reason, people prefer government jobs to private jobs, where the security is
good but not the income.
