In Tata Steel, several initiatives have been taken to futher imrove the motivation levels and participation in the decision making process of the officers, greater impetus to training through a formalised system of a personal development programme, talent review and job rotation system, compensation linked to the performance
manager system, formal rewards and recognition systems, knowledge management system linked with appraisals, leadership opportunities in quality circles, continuous improvement and value engineering programmes and an extremely transparent and credible multi-path communication system to address queries and concerns of all employees through various dialogues both formal and online, with such tools as video conferecing, 'MD Online', special dialogues with senior management, meeting, conferences and seminars. These initiatives have helped to build a homogeneous and focused team in Tata Steel, increasing motivation and binding to the vision of the company and spurred employees to deliver targets on a participatory managemen basis leading to ownership of processes. Tata Steel is a company that actively promotes freedom to week, freedom to innovate and even the freedom to fail. It is a nimble, fast, modern and forward-looking company on a strong growth path. The company has undergone a revolutionary change in terms of its production facilities and the technology in the manufacturing process. These changes have resulted in creating greater opportunities for taking up newer challenges for young recruits work and for performance based on IT enebled systems and high levels of automation. These have led to making the company one of the lowest cost producers of steel and the only Indian company to be recognised by the World Steel makers. Tata Steel hopes not only to consolidate but better its leadership by robust leadership development systems that have seen the company create many CEOs for other companies.
Explain any two incentives of each category mentioned above

Explanation

(i) Two Financial Incentives are :
(a) Pay and allowance For every employee, salary is the basic monetary incentive. It includes basic pay, dearness allowance, house rent allowance, pay hikes and increments for better performance.
(b) Bonus It is a one time reward for high performance. Bonus may be paid in cash or kind over and above the salary. e.g. performance bonus, 100 % attendance bonus, festive bonus etc.
(ii) Two Non-financial Incentives are :
(a) Status In business terms, status means ranking of positions in the organisation. The authority, responsibility, rewards recognition, perquisites and prestige of job indicate the statu given to a person holding a managerial position.
(b) Prganisational climate Better conditions in an organisation like individual autonomy, reward orientation, consideration to employees, risk taking, better performance of workers helps to develop better organisational climate.