Question 16

Expectancy theory encompasses the manager's plan for the team to achieve increased results by linking job performance to annual bonuses.

Expectancy theory suggests that individuals are motivated to act in a certain way based on their expectations that their efforts will lead to desired performance, which in turn will result in specific rewards, such as bonuses.

A) Expectancy

Expectancy theory is correctly identified here as it directly relates to the concept of linking job performance to rewards. This theory posits that if employees believe that their hard work will lead to better performance and, consequently, bonuses, they are more likely to be motivated to improve their results.

B) Learning

Learning theory focuses on how individuals acquire new skills or knowledge through experience and reinforcement. While it can influence motivation, it does not specifically address the relationship between performance and rewards like bonuses, making it less relevant in this context.

C) Agency

Agency theory deals with the relationship between principals and agents, particularly in terms of aligning interests and incentives. Although it touches on motivation, it does not specifically explain the link between job performance and financial rewards, which is central to the scenario described.

D) Equity

Equity theory emphasizes fairness in relationships and how perceived inequities can impact motivation. While it can relate to rewards, it does not focus on the direct link between performance and bonuses as clearly as expectancy theory does in this situation.

Conclusion

Expectancy theory is the most suitable explanation for the manager's strategy of linking job performance to bonuses, as it highlights the motivation derived from the expectation of receiving rewards for efforts. Other options either pertain to different aspects of motivation or do not adequately address the performance-reward connection presented in the question.