Reference no: EM132929931

Samuel Jackson is a call centre manager for Telstra-Phone Ltd, a mobile phone company. Call centre operators at his call centre are responsible for answering calls from Telstra-Phone Ltd's customers. Some calls are very short, relating to simple enquiries. However, many of the calls tend to be longer, coming from irate customers complaining about Telstra-Phone Ltd's services. In these calls, customers are often very emotional and sometimes even abusive. Call operators have no control over what types of calls they get.

Samuel has developed a new incentive system for her call centre staff. Under the new system, call centre operators are rewarded if they achieve two performance targets:

(1) the duration of 90 per cent of the calls is less than 4 minutes and
(2) 80 per cent of customers rate Telstra-Phone Ltd's 'customer service quality' as 'excellent'.

Problem 1: Achieving these two monthly performance targets will result in a bonus worth 20 per cent of the call operator's monthly salary. Based on expectancy theory, the major limitation(s) of Samuels's reward system is:

Select one:

Option 1: the incentive system lacks expectancy and instrumentality.
Option 2: the incentive system lacks expectancy.
Option 3: the incentive system lacks valence and instrumentality.
Option 4: the incentive system lacks valence.