TPC Company is considering a new incentive system under which bonuses will be awarded to divisional managers employing the following weights:
Division performance 15%
Corporate performance 70%
Individual performance 15%
Todd Brown, a divisional manager, believes he has minimal impact on overall corporate performance and only a 10% impact on group performance in his division. How motivating does expectancy theory suggest the new system will be for Brown?
A) Brown will have little motivation because of his limited ability to influence group and corporate performance.
B) Brown will have little motivation because his base salary is sufficiently large as to negate the influence of bonus payments.
C) Brown will be highly motivated since the bonus will reward his individual performance.
D) Brown will be highly motivated because he is personally risk-averse.

Question

Quizplus · Accepted Answer

Expectancy theory suggests that motivation is highest when individuals believe their efforts will lead to desired outcomes. Since Brown perceives he has minimal impact on the factors that most influence his bonus (corporate and group performance), he is likely to find the new incentive system less motivating.

TPC Company Is Considering a New Incentive System Under Which