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Congratulating the employee for good performance and awarding him for giving valuable suggestions are which type of non-financial incentives?
Question

Congratulating the employee for good performance and awarding him for giving valuable suggestions are which type of non-financial incentives?

A.

Status

B.

Organisational Climate

C.

Employee Recognition Programme

D.

Career Advancement Opportunities

Correct option is C


Non-financial incentives are those motivators that do not involve monetary benefits but help stimulate employee morale and performance. When an organisation:
· Congratulates the employee for good performance
· Appreciates valuable suggestions
· Recognises one’s contribution publicly
· Gives certificates, awards, badges of honor
these activities are part of an Employee Recognition Programme.
Such programmes motivate employees by acknowledging their excellence, creativity, initiative, and contribution to organisational improvement.
Information Booster (Important Points)
1. Recognition improves employee morale, job satisfaction, and emotional engagement.
2. It is one of the most powerful non-financial motivators because it fulfills psychological needs.
3. Recognition can be formal (awards, certificates) or informal (praise, appreciation in meetings).
4. A well-designed recognition programme enhances retention and reduces absenteeism.
5. Recognition encourages employees to take initiative and participate in suggestion schemes.
Additional Information
· (a) Status – Incorrect; status refers to the rank, authority, or level of prestige associated with the job, not appreciation or congratulation.
· (b) Organisational Climate – Incorrect; this refers to the overall working environment, culture, and employee perception, not specific acts of recognition.
· (d) Career Advancement Opportunities – Incorrect; these involve promotion, training, and development opportunities, not congratulating or awarding employees.

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