The US Economic Bubble Burst After the Attacks of September 11

question 28

Multiple Choice

The U.S. economic bubble burst after the attacks of September 11, 2001. Which of the following could be considered a contributing factor to the U.S. economic downturn?

• A) a negative reassessment of long-term economic growth prospects in the U.S.
• B) a newly formed level of political risk
• C) lower expected earnings
• D) all of the above

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Definitions:

Evaluation System

A structured process used by organizations to assess, review, and enhance performance and effectiveness, typically of employees or processes.

Expectancy Theory

Is a fairly complex process theory of motivation that casts the employee in the role of decision maker. Basically, an employee decides whether or not to exert effort, depending on the outcomes he or she anticipates receiving for those efforts as based on calculations concerning expectancies, instrumentalities, valences, and the links among these three components.

ProMES

A performance management system that aims to improve organizational effectiveness by clarifying expectations and objectives.

Goal Theory

First proposed by Ed Locke, goal theory is a fairly simple model of motivation based on the premise that people with goals work harder than people without goals. Beyond that, the theory suggests that not all goals are created equal, and that goals that are difficult and yet specific and concrete will motivate employees best.