Q.Keshav Bannerjee is the Chief Executive Officer (CEO) of 'Das Networking Ltd.', a leading IT company in Bengaluru. He believes that if needs of employees are taken care of, the employees take good care of the customers. In this company various benefits are provided to the employees to help them meet their medical and housing needs etc., while in job. It is also providing benefits like gratuity at the time of their retirement. The employees are provided various opportunities to attend skill development programmes to improve their skills and be promoted to the higher level jobs. Identify and state the three incentives offered by the company in the above para to improve the performance of its employees.
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Start your 14-day free trial to unlock the full solution →The paragraph describes three incentives — perquisites and retirement benefits (both financial incentives) and career advancement opportunity (a non-financial incentive) — that Das Networking Ltd. uses to motivate its workforce.
The question asks you to identify the specific incentives Keshav Bannerjee’s company offers. Before we list them, let’s understand the context. In business studies, incentives are broadly divided into financial incentives (those that carry a direct money value — whether paid in cash or provided as a measurable money-worth benefit) and non-financial incentives (those that satisfy psychological, social and growth needs rather than offering a direct monetary value). The paragraph names all three of the company’s incentives, and — as we will see — two of them are financial while the third is non-financial.
The first incentive is Perquisites. The text says the company provides benefits that help employees meet their “medical and housing needs etc., while in job.” Perquisites (sometimes called fringe benefits or perks) are special benefits given over and above the salary, such as medical aid, housing or company accommodation, and similar facilities. Because each of these carries a definite money value to the employee, perquisites are classified as a financial incentive. They raise the employee’s standard of living and make them feel cared for, which aligns with Bannerjee’s belief that taking care of employees leads to better customer service.
The second incentive is Retirement Benefits. The paragraph mentions “gratuity at the time of their retirement.” Retirement benefits such as gratuity, provident fund and pension are amounts an employee receives after leaving service, giving them financial security for the future. Since they provide a measurable monetary benefit, retirement benefits are also a financial incentive. By offering them, the company reduces employees’ anxiety about their future and encourages long-term loyalty. …
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