Scenario 13.1 John Davis, the Human Resource Manager for a Chain of Chain

Scenario 13.1
John Davis, the human resource manager for a chain of hotels, is trying to motivate the company's employees with an updated compensation plan.There are two groups of operating employees.Line employees are responsible for dealing directly with customers and their performance objectives are related to providing high-quality customer service.To do this, line personnel must undergo regular training to update their customer service skills.Operating managers are responsible for monitoring the activities of the line personnel and providing instructional/developmental support when needed.Currently, the line personnel are paid on an hourly basis while the operating managers are paid salaries on a monthly basis.If employees receive adequate performance appraisals, they can receive generous bonuses and pay raises.However, when performance evaluations are inadequate, employees do not receive any rewards.This method of appraisal is creating conflicts between the employees and the top management of the organization.John believes that his new plan to give employees shares of profit and stock on the basis of the results of performance evaluations will further motivate employees and managers.
-Refer to Scenario 13.1.John works in an organization where additional incentives are paid to employees in accordance with their levels of outcome.Owing to the cost-cutting measures adopted by the organization, the additional incentives scheme was removed.On the basis of the _____ theory, an individual's motivation is reduced when the anticipated outcome for their efforts is not met.

A) agency
B) expectancy
C) equity
D) goal
E) need-based