CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories
Which of the following is an example of a non-financial (intrinsic) motivator rather than a financial incentive?
Public appreciation or recognition without any cash component is a non-financial motivator, because it satisfies esteem and status needs. Bonus, profit sharing and stock options all give monetary benefits, so they are financial incentives rather than non-financial ones.
- AAnnual bonus of one month's salary
- BProfit-sharing plan
- CRecognition of an employee's contribution through a public appreciation award without cashCorrect
- DStock options offered to executives
Explanation
Bonus, profit sharing and stock options all carry monetary value and are financial incentives. Public recognition without cash satisfies esteem needs and is a non-financial motivator.
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