It Is Important, When Designing, Implementing and Using a Reward

question 2

Multiple Choice

It is important, when designing, implementing and using a reward strategy, for it to meet individual and organisational needs.Which of the following is NOT an organisational need?

• A) use a fair and objective performance management system with regular performance reviews
• B) reinforce the key values and the desired culture and behaviours through clear performance indicators
• C) motivate employees to continue improving their performance by making sure that high performers will be rewarded for their contributions
• D) attract and develop the desired quality mix of employees

---

Definitions:

ERG Theory

A motivation theory developed by Clayton Alderfer that categorizes human needs into three groups: Existence, Relatedness, and Growth, suggesting individuals are motivated by these needs in a hierarchical fashion.

VIE Theory

A psychological theory proposing that an individual's motivational force is determined by the perceived value of the outcome, the expectancy of achieving the outcome, and the instrumentality of the action.

Need-Based Theories

Psychological theories that focus on understanding human needs and how they influence behavior, particularly in the context of motivation.

Agency Theory

An economic theory that examines the relationship between principals (owners) and agents (executives), focusing on the conflicts of interest that may arise.