Expectancy Theory
What is the belief that good performance will lead to a desired outcome?
Instrumentality
An employee is paid a specific amount for every unit produced. What compensation element is this?
Piece-rate
A bonus, promotion, or praise is received because of successful task performance. What type of motivation do these outcomes foster?
Extrinsic motivation
EY plans to award $100 million in bonuses for employees demonstrating what type of skills?
Human skills, such as leadership, judgment, business acumen, collaboration, and adaptability
What determines how desirable an outcome is to an employee?
Valence
A manager gives an employee a permanent increase to base salary because of a strong performance evaluation. What is this?
Merit pay
An employee believes their work is personally important but has little control over how they perform it. Which psychological empowerment belief is weakest?
Self-determination
Why is EY emphasizing human skills while also investing in technology adoption?
EY is trying to build a workforce where technology and human capabilities work together rather than focusing only on technical skills
An employee works harder but believes rewards are unrelated to performance. Which component is low?
Instrumentality
A manufacturing plant rewards employees for reducing controllable labor and material costs while maintaining quality. What compensation element fits?
Gainsharing
An employee feels capable and has autonomy but believes their actions have no effect on important outcomes. Which belief is weakest?
Impact
An employee demonstrates strong leadership but believes those behaviors have no effect on whether they receive the bonus. Which part of the motivation process is weakened?
Instrumentality
What three beliefs make up expectancy theory?
Expectancy, instrumentality, and valence
A company wants employees to pursue difficult, specific goals and wants the reward to be closely connected to individual performance. Which type of compensation would generally create the strongest instrumentality and equity?
Individual-focused compensation: piece-rate or merit pay.
Why can the same reward have different motivational value for two employees?
Employees have different needs and therefore may assign different valences to the same outcome
EY says the industry is changing rapidly and becoming more complex. Why would adaptability become especially relevant to the company's compensation strategy?
EY wanst to reward employees who show adaptability.