Your employer is considering tying the bonus pool to the firm's profitability and then allocating this amount to employees based on individual merit.With reference to expectancy theory,which component of the merit system will be weakened and thus make it less motivational for you as an employee?

Question

Quizplus · Accepted Answer

Expectancy theory suggests that motivation arises from the belief that increased effort will lead to improved performance, and that improved performance will lead to better rewards. The merit system described in the scenario weakens the instrumentality component of the theory, as individual merit is no longer directly tied to rewards, but rather is tied to the firm's profitability as a whole. This makes it less clear to employees how their individual efforts will be directly linked to the reward system.

Your Employer Is Considering Tying the Bonus Pool to the Firm's