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Question
XYZ Ltd. follows a compensation policy that focuses solely on financial incentives as it believes that money is a great motivator. Despite receiving handsome salaries, several managers have recently resigned from the company.
Which one of the following is most likely the reason for their resignation?
Options
The managers are satisfied with only financial rewards.
The managers are satisfied with non-monetary benefits.
The managers feel that the monetary incentives are too high.
The managers want both monetary as well as non-monetary incentives.
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Solution
The managers want both monetary as well as non-monetary incentives.
Explanation:
Managers need more than just good salaries to stay motivated. They also expect non-monetary incentives like recognition, growth opportunities, job security, and a positive work environment. Since XYZ Ltd. focused only on financial rewards, these needs were unmet, leading managers to resign in search of a more balanced compensation system.
