Scenario 13.1 John Davis, the Human Resource Manager for a Chain of Chain

question 27

Multiple Choice

Scenario 13.1
John Davis, the human resource manager for a chain of hotels, is trying to motivate the company's employees with an updated compensation plan.There are two groups of operating employees.Line employees are responsible for dealing directly with customers and their performance objectives are related to providing high-quality customer service.To do this, line personnel must undergo regular training to update their customer service skills.Operating managers are responsible for monitoring the activities of the line personnel and providing instructional/developmental support when needed.Currently, the line personnel are paid on an hourly basis while the operating managers are paid salaries on a monthly basis.If employees receive adequate performance appraisals, they can receive generous bonuses and pay raises.However, when performance evaluations are inadequate, employees do not receive any rewards.This method of appraisal is creating conflicts between the employees and the top management of the organization.John believes that his new plan to give employees shares of profit and stock on the basis of the results of performance evaluations will further motivate employees and managers.
-Refer to Scenario 13.1.The proposal of profit and stockawards for employees canmake everyone in the organization work toward the common organizational goals.In this scenario, which of the following provides a useful framework to deal with the conflict of interests between employees and owners?

• A) Needs theory
• B) Equity theory
• C) Agency theory
• D) Goal theory
• E) VIE theory

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Definitions:

Humanistic Approach

A perspective in psychology that emphasizes the study of the whole person and the uniqueness of each individual's experience.

Self-Concept

An individual's perception of themselves, including beliefs about one’s abilities, appearance, and personality.

Carl Rogers

A prominent American psychologist known for establishing client-centered therapy and highlighting the significance of self and unconditional positive acceptance.

Experiencing Anxiety

The feeling of worry, nervousness, or unease typically about an imminent event or something with an uncertain outcome.