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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.

  1. AAnnual bonus of one month's salary
  2. BProfit-sharing plan
  3. CRecognition of an employee's contribution through a public appreciation award without cashCorrect
  4. 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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