Question:medium

'Child-O' is a garment manufacturing company which makes clothes with unique and stylish designs for children. Naisha was working as the Human Resource Manager with 'Child-O'. Inspite of good pay and many other benefits offered, the company is facing problem of high turnover of its employees. Naisha tried to find out the reason but could not. She appointed a person with the permission of the Chief Executive Officer to find out the reason. It was found that other organisations were giving more autonomy and authority to their employees which made them feel that their jobs were important. This was attracting the employees of 'Child-O' to other organisations. The incentive which attracted the employees of 'Child-O' to other organisations is:

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Empowerment questions focus on autonomy/authority. When employees leave despite good pay, always check for psychological needs.
Updated On: Jan 13, 2026
  • Employee Recognition programmes
  • Employee Participation
  • Career Advancement Opportunity
  • Employee Empowerment
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The Correct Option is D

Solution and Explanation

The primary distinction was Empowerment, demonstrated by:
1. Autonomy Disparity: Competitors provided greater decision-making power, and employees prioritized job control over financial incentives.
2. Psychological Effect: This led to a feeling of job importance and addressed higher-level needs, such as esteem and self-actualization.
3. Current HR Practice: A Gallup study indicates 72% of employees value empowerment over salary, a sentiment particularly strong among Gen Z and millennial workers. Differentiating Elements: - (A) Acknowledgment: Focuses on appreciation rather than authority. - (B) Engagement: Involvement differs from the ability to make decisions. - (C) Professional Advancement: Not a factor mentioned in the case.
Conclusion: (D) Staff Empowerment
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