Question:medium

In a company, employees are involved in decision-making of the issues related to them by forming joint management committees, work committees, canteen committees, etc. The non-financial incentive discussed above is -----------.

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Remember:
  • Employee Participation $\rightarrow$ Involvement of employees in decision-making
  • Committees and group discussions are common examples
Updated On: Jun 3, 2026
  • Employee Participation
  • Employee Empowerment
  • Employee Recognition Programmes
  • Organisational Climate
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The Correct Option is A

Solution and Explanation

Step 1: Understanding the Concept:
Motivation is a key aspect of the directing function, and it is driven by incentives.
While financial incentives provide monetary gain, non-financial incentives cater to psychological, social, and emotional needs.
Employee Participation is a non-financial incentive where employees are given a "voice" in the management process.
It involves involving workers in decisions that affect them directly or affect the workplace environment.
Step 2: Detailed Explanation:
The situation highlights the formation of various committees (Joint Management, Work, Canteen).
These committees allow employees to step beyond their routine tasks and contribute to the management of the organization.
1. Psychological Impact: Being part of a committee gives an employee a sense of belonging and importance. They feel that their opinion matters.
2. Commitment: When employees are part of a decision, they are more likely to support it and work harder to make it successful.
3. Contrast with other incentives:
- Employee Empowerment (B): This is about giving the employee more authority and freedom to take decisions on their own job tasks. It is about "delegation of power" rather than just "participation in a committee."
- Employee Recognition (C): This is about acknowledging and appreciating good work through awards, certificates, or a "wall of fame."
- Organisational Climate (D): This refers to the overall internal environment—factors like trust, autonomy, and individual freedom within the company.
Step 3: Final Answer:
The act of involving employees in "committees" for "decision-making" is the precise definition of Employee Participation.
This approach builds a collaborative culture and reduces friction between management and workers.
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