Q. Explain Role of non monetary incentives

Role of non monetary incentives / rewards: the various roles of non monetary incentives in motivating the work force are as follows:

1. Competition: competition is a kind of non financial incentive. If there lit a healthy competition among the individual employees or groups of employees, it will lead to them to achieve their personal or group goals in a better way.

2. Group incentives: Group incentives are more powerful to motivate the employees than the individual incentives. When the prestige of the group is stake, its members will work with a team spirit. They will have high morale and their productivity will also go up.

3. Praise: praise satisfies one's ego needs. Sometimes, praise is more effective than any other incentive. We have seen that in industry, at home or elsewhere people respond better to praise. However this incentive should be used with greater degree of care because praising an incompetent employee would create resentment among competent employee.

4. Job enrichment: Job enrichment means increasing the contents of a job leading to up gradation of responsibility, scope and challenge in its performance. Job enrichment gives higher satisfaction to the job holders and increases the level of their motivation.

5. Opportunity for growth: Opportunity for growth is another kind of incentive. If the employees are provided opportunities for their advancement and growth to develop their personality, they feel very much satisfied and become more committed to the organizational goals.

6. Knowledge of the results: Knowledge of the results leads to employee satisfaction. A worker likes to know the result of his performance. He gets satisfaction when his superior appreciated the work being heard because the workers participation in management provides for two way communication.

7. Workers participation in management: Employees' participation in management provides an important incentive to the employees. It gives them psychological satisfaction that their voice is being heard because workers participation in management provides for two way communication.

8. Suggestion systems: Suggestion system is an incentive which satisfies many needs for the employees. Many organizations which use the suggestion system make use of cash awards for useful suggestions.