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Case Problem  

Y limited is a bank functioning in India. It is planning to diversify into increase business. Lately, the Government of India has allowed the private sector to gain entry in the increase business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalisation of the economy and to make the field competitive other compnies have been given licenses to start insurance business under the regualtion of Insurance Regulatory and Development Authority’.  Y limited plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non-life insurance business.

What financial and non financial incentives can the company use for employees and agents separately to motivate them. What benefits company will get from them?

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2 Answers

Incentives for Employees 

(i) Financial 

(a) Productivity linked wage incentive 

(b) Bonus 

(c) Co-partnership 

(d) Employee stock option 

(ii) Non-financial 

(a) Job-security 

(b) Status 

(c) Employee empowerment 

(d) Employee recognition programme 

Incentives for Agents 

(i) Financial (a) Commission (b) Bonus like paid vacation 

(ii) Non-financial Incentive 

(a) Cordial relationship 

(b) Career advancement opportunity 

(c) Job enrichment 

(d) Recognition programmes like certificate of merit etc. 

(e) Company achieves the motivation among the employees and they will contribute more in achieving targets.

4 views

Incentives for Employees 

1. Financial 

(a) Productivity linked wage incentive 

(b) Bonus 

(c) Co-partnership 

(d) Employee stock option

2. Non-financial 

(a) Job – security 

(b) Status 

(c) Employee empowerment 

(d) Employee recognition

Incentives for agent 

1. Financial 

(a) Commission 

(b) Bonus like paid vacation

2. Non-financial Incentive 

(a) Cordial relationship 

(c) Job enrichment 

(d) Recognition programmes like a certificate of merit etc. 

(e) Company achieve motivation among the employees and they will contribute more in achieving targets.

4 views

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