Comprehension

‘Shanta Enterprises’ was in the business of manufacturing solar panels for the last fifteen years. With their expertise now they were able to manufacture good quality solar panels at lower cost. As a result ‘Shanta Enterprises’ was flooded with orders and was able to generate a good profit margin. 
To motivate the employees the company decided to compensate some of them for their hard work. Arvind and Yogesh, who were working on contract basis, were absorbed permanently in the company. Both were happy as now there was stability about their future income. Ekta, a regular employee of the company, working as Research and Development Head, was awarded the ‘Best Employee of the year Award’. 

Question: 1

Identify and explain the incentives given by Shanta Enterprises to its employees.

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Combining both financial and non-financial incentives ensures holistic employee motivation — addressing both tangible security and emotional satisfaction.
Updated On: Jan 13, 2026
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Solution and Explanation

Provided Incentives:
1. Financial Incentive (Job Security): Arvind and Yogesh transitioned from contract roles to permanent employment, ensuring financial stability and long-term assurance, serving as a direct financial motivator.
2. Non-Financial Incentive (Recognition): Ekta, as R and D Head, received the "Best Employee of the Year" award. This recognition enhances morale, fosters a sense of accomplishment, and encourages continued productive behavior, representing a significant non-monetary motivational factor.
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Question: 2

State the needs of the employees being met by such incentives as per Maslow’s Need Hierarchy Theory.

Updated On: Jan 13, 2026
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Solution and Explanation

Application of Maslow's Hierarchy of Needs Theory:
Maslow posited that human needs are structured hierarchically. Shanta Enterprises catered to the following needs:
Safety Needs: Permanent employment provided Arvind and Yogesh with job security and financial stability, alleviating concerns about job loss.
Esteem Needs: Ekta's recognition through an award satisfied her need for appreciation and status, boosting her self-confidence and peer respect.
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