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We need money to satisfy almost all our needs as it has purchasing power. Thus, financial incentives refer to those incentives which are in direct monetary form i.e. money or can be measured in monetary terms. Financial incentives can be provided on an individual or group basis and satisfy the monetary and future security needs of individuals.
Apart from the monetary and future security needs, an individual also has psychological, social and emotional needs. Satisfying these needs also plays an important role in their motivation. Non-financial incentives focus mainly on the fulfillment of these needs and thus cannot be measured in terms of money.
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Span of management refers to the number of subordinates that can be effectively managed by a superior. It depends on the ability of the superiors, availability of time for supervision, the intelligence of subordinates and nature of work etc. Span of management gives shape to the organizational structure. It also helps an enterprise to adjust itself according to the environment changes. An effective manager is recognized through his span of management. The greater the span, the highly effective the manager.
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Management is the administration of an organization, whether it is a business, a not-for-profit organization, or government body.
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Sia ? 6 years, 7 months ago
Dividend Decision: Dividend decision involves deciding the amount of profits to be distributed among the shareholders and amount of profits to be retained in the business to meet investment requirements. While diividend constitutes current income, its re-investment as retained earnings helps in increasing future earning capacity of the firm. The decision regarding dividend should be taken keeping in mind the overall objective of maximising shareholder's wealth.
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