Performance-based compensation is probably most compatible with expectancy theory.

Question

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Expectancy theory suggests that individuals will be motivated to put in effort if they believe that it will lead to high performance, and that high performance will lead to desired outcomes (such as rewards or recognition). Performance-based compensation is well-aligned with this belief, as it essentially links an employee's effort and performance to their financial rewards. Therefore, performance-based compensation is likely to be most compatible with expectancy theory as a motivator for employees.

Performance-Based Compensation Is Probably Most Compatible with Expectancy Theory