Expectancy Theory Suggests That Managers Attempting to Improve Employee Performance

question 70

Multiple Choice

Expectancy theory suggests that managers attempting to improve employee performance would be well advised to:

• A)make sure that all employees are expected to meet the same standards.
• B) focus on setting monetary rewards for meeting the standards.
• C)set attainable performance goals.
• D)keep salaries earned by employees confidential.

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Definitions:

Depreciation

The systematic allocation of the cost of an asset over its useful life.

Investment Center

A business unit within a company that is responsible for its own revenues, expenses, and asset investments, with its performance measured by its ability to generate income relative to its assets.

Minimum Required Return

The lowest acceptable return on an investment, based on risk tolerance and financial goals.

Residual Income

The income that exceeds the minimum required return on investment or capital employed; often used as a performance measure.