Your Employer Is Considering Tying the Bonus Pool to the Firm's

question 2

Multiple Choice

Your employer is considering tying the bonus pool to the firm's profitability and then allocating this amount to employees based on individual merit.With reference to expectancy theory,which component of the merit system will be weakened and thus make it less motivational for you as an employee?

• A) valence
• B) expectancy
• C) instrumentality
• D) effort

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Definitions:

Present Right

The current legal ability to exercise a right or claim to property, as opposed to a future or conditional interest.

Property Ownership

The legal right to possess, use, and dispose of real estate or personal property.

Co-ownership Interests

Legal rights and interests held by individuals or entities that own property together, entitling them to use, profit from, or dispose of the property jointly.

Tenancy in Common

A form of co-ownership where each owner possesses a fractional share of the entire property, but there is no right of survivorship.