1.

Mrs Rajlaxmi is working as the Human Resource Consultant in a firm manufacturing cosmetic, which is facing a problem of high employee turnover. The CEO of the company has invited suggestions from her for retaining the talented employees and reducing the employee turnover. Mrs. Rajlaxmi recommends that the good employees be rewarded in a way that it creates a feeling of ownership among the employees and at the same time makes them contribute towards the growth of the organization.1. Identify the incentive and explain its type, which has been suggested by Mrs. Rajlaxmi to the CEO of the company.2. Also explain any two other incentives of the same type.

Answer»

1. Incentive : Financial Type : Co-partnership or Stock Option

2. Other Financial Incentives:

1. Pay and Allowances: Pay and allowances are the chief monetary incentives for every employee. Salary includes basic pay and dearness allowance alongwith other allowances. The employees remain motivated with the annual increment in pay and allowances.

2. Productivity-linked Wage Incentive: The employees can be motivated by linking productivity with their salary. In other words, the increment in salary will be in direct proportion of increase in productivity.



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