Reference no: EM132687497

Question: Expectancy Theory says that three conditions must be simultaneously satisfied for rewards to motivate employees to increase their work effort:

(1) The reward (such as a bonus or an increase in pay) being offered by the employer must be valued by the employee,

(2) the employee must perceive that there's a strong link between job performance and rewards so that the employee believes that they'll get the reward if they improve their job performance, and

(3) the employee must perceive that there is a strong link between their effort and their job performance so that the employee believes that if they increase their effort that they'll increase their job performance.

A. Why might there be a weak link between employee job performance and employee rewards? What can managers do to strengthen the link between employee job performance and employee rewards?

B. Why might there be a weak link between employee effort and employee job performance?

1. What is merit pay? What are individual incentive bonuses? What are the primary differences between merit pay and individual incentive bonuses?

2. Brainstorm a list of things that might motivate employees to want to do a good job in addition to monetary rewards.

3. What is unemployment insurance as a legally required benefit? What does it mean that an employer's unemployment insurance tax rate depends on the employer's "experience rating"?

4. What is worker's compensation as a legally required benefit? What three factors determine an employer's worker's compensation premium rate?

5. A. What is a defined benefit pension plan? Who bears the investment risk in a defined benefit pension plan, the employer or the employee?