The degree to which pay influences individual and aggregate motivation among employees at any point in time is referred to as a(n):
A)sorting effect.
B)incentive effect.
C)turnover effect.
D)directional effect.

Question

Quizplus · Accepted Answer

The degree to which pay influences individual and aggregate motivation among employees is referred to as the incentive effect. It is a measure of the impact that pay has on motivating employees to perform better or increase their effort in achieving organizational goals. The sorting effect refers to the impact of pay on attracting and retaining employees with certain characteristics, while the turnover effect refers to the impact of pay on reducing or increasing employee turnover. The directional effect is not a relevant term in this context.

The Degree to Which Pay Influences Individual and Aggregate Motivation