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?
A) valence
B) expectancy
C) instrumentality
D) effort

Question

Quizplus · Accepted Answer

The instrumentality component of the merit system will be weakened with this approach because employees may perceive a lower linkage between their individual efforts and the bonus they will receive. If the bonus pool is tied to firm profitability, individual employees may feel that their efforts will not have a direct impact on bonus allocation, even if they perform well. This could reduce the motivational potential of the merit system.

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