5. Tanushree is working in a multinational company. Her performance is appreciated by everyone in the company. As an incentive, the company offered her to buy the shares of the company at a price that is less than the market price.
(a) Name and give the meaning of the incentive offered to Tanushree.
(b) State any two more incentives of the same type.
Solution:
(a) Tanushree is given Financial Incentive called Co-Partnership or Stock Option.
Co Partnership is a financial incentive in which shares are issued to employees at price less than market price. It is both profit sharing ansd control sharing.
(b) Two more incentives of same type:
(i) Bonus: It is a sum of money offered to an employee over and above the salary or wages as a reward for his/her good performance.
(ii) Productivity linked Wage Incentives : Many wage incentives are linked with the increase in productivity at individual or group level. For example, a worker is paid 50 rupees per piece if he produces 50 pieces a day but if he produces more than 50 pieces a day, he is paid 5 rupees extra per piece. Thus, on the 51st piece, he will be paid 55 rupees.
(a) Tanushree is given Financial Incentive called Co-Partnership or Stock Option.
Co Partnership is a financial incentive in which shares are issued to employees at price less than market price. It is both profit sharing ansd control sharing.
(b) Two more incentives of same type:
(i) Bonus: It is a sum of money offered to an employee over and above the salary or wages as a reward for his/her good performance.
(ii) Productivity linked Wage Incentives : Many wage incentives are linked with the increase in productivity at individual or group level. For example, a worker is paid 50 rupees per piece if he produces 50 pieces a day but if he produces more than 50 pieces a day, he is paid 5 rupees extra per piece. Thus, on the 51st piece, he will be paid 55 rupees.