---
title: "Interview, wage vs salary, incentive"
subject: "Organization and Management"
chapter: 7
key: "semester_7/organization_and_management:interview-wage-incentive"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/interview-wage-incentive
site: BCT Engineering
---

# Interview, wage vs salary, incentive

Organization and Management · Chapter 7: Personal Management

- Asked in: 2073 Chaitra, 3+3+2 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/interview-wage-incentive
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-7

## Question

What is the role of interview in manpower hiring process? What is the difference between wage and salary? What is an incentive and why is it needed?

## Short answer

An interview assesses communication, personality, and CV accuracy while letting both parties exchange information. A wage varies with hours worked (e.g., daily pay) while salary is fixed monthly. An incentive is extra reward (bonus, promotion) needed to boost motivation, productivity, and retention.

## Answer

#### Role of interview in hiring
An interview is a face-to-face talk between employer and candidate to judge suitability. Its role:
1. Assesses communication, personality, attitude and confidence, which tests cannot show.
2. Checks knowledge and verifies the information in the CV.
3. Lets the employer explain the job and organization; lets the candidate ask questions.
4. Tests problem-solving and judgement, and fit with the team and culture.
5. Helps final selection and the salary discussion.

#### Wage vs salary
| Basis | Wage | Salary |
|---|---|---|
| Meaning | Payment for hours or output, mostly manual or labour work | Fixed monthly payment for professional, clerical or managerial work |
| Basis | Hourly, daily or piece | Monthly or annual |
| Variation | Varies with time worked | Fixed |
| Overtime | Usually paid | Often not paid separately |
| Example | Construction labourer, daily wage | Engineer or bank officer |

#### Incentive and its need
An incentive is a reward, financial (bonus, commission) or non-financial (recognition, promotion), given in addition to regular pay to motivate better performance.

**Need**
1. Increases productivity and quality.
2. Motivates employees and improves morale.
3. Attracts and retains talent.
4. Links pay to performance.
5. Reduces supervision cost and absenteeism.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What can an interview assess that written tests cannot?
   A. Mathematical ability
   B. Communication, personality, attitude and confidence
   C. Age of the candidate
   D. Number of past jobs only
   Answer: B. Face-to-face talk reveals communication, personality, attitude and confidence. (Key point: Role of interview)

2. Which statement correctly separates wage from salary?
   A. Wage is fixed monthly; salary varies with hours
   B. Both are the same in basis and payment
   C. Wage is paid for hours or output and varies; salary is a fixed monthly payment
   D. Salary is always paid for manual work
   Answer: C. Wages depend on time worked or output (e.g. a labourer's daily wage), while salary is a fixed monthly payment for professional or clerical work. (Key point: Wage vs salary)

3. What is an incentive?
   A. A reward over regular pay given to motivate better performance
   B. A penalty for poor work
   C. The basic monthly salary
   D. A compulsory legal deduction
   Answer: A. An incentive is a financial or non-financial reward in addition to regular pay to motivate performance. (Key point: Meaning of incentive)

4. Why are incentives needed?
   A. To increase supervision cost
   B. To make pay independent of performance
   C. To raise absenteeism
   D. To link pay to performance and increase productivity
   Answer: D. Incentives link pay to performance, boost productivity and morale, and reduce supervision cost and absenteeism. (Key point: Need of incentive)

## Related in Organization and Management

- [Wage/salary factors; training methods](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Awage-factors-training) — Organization and Management, chapter 7
- [Incentives; factors affecting wage/salary](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Aincentives-wage-factors) — Organization and Management, chapter 7, asked 3×
- [Recruitment vs hiring; need of incentives](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Arecruitment-vs-hiring) — Organization and Management, chapter 7

## Related in other subjects

- [Case study: new system vs existing (cost, manpower)](https://www.bctengineer.com/question.md?key=semester_5%2Finstrumentation_ii%3Acs-cost-manpower-automation) — Instrumentation II, chapter 10, asked 4×
- [Process vs thread; context switching](https://www.bctengineer.com/question.md?key=semester_6%2Foperating_system%3Athread-context-switching) — Operating System, chapter 2
- [Process vs threads; importance in DS](https://www.bctengineer.com/question.md?key=semester_7%2Fdistributed_system%3Aprocess-vs-thread) — Distributed System, chapter 3, asked 3×
- [Process vs thread; multithreading advantages](https://www.bctengineer.com/question.md?key=semester_6%2Foperating_system%3Aprocess-thread-multithreading) — Operating System, chapter 2