The Most Productive Employee in the Department Doesn't Apply for a Job

question 21

Multiple Choice

The most productive employee in the department doesn't apply for a job opening they are well suited for,in spite of an excellent record and the pay and prestige associated with the new job.The employee believes that the job will go to someone who has more seniority.Based on expectancy theory,which would explain why the employee doesn't apply for the job?

• A) The effort-performance issue
• B) The equity theory issue
• C) The performance-reward issue
• D) Personal goals
• E) Family demands

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Definitions:

Markowitz Model

A portfolio optimization theory that demonstrates how to achieve the best portfolio allocation to maximize return for a given level of risk through diversification.

Systematic Risk

The risk inherent to the entire market or entire market segment, which cannot be eliminated through diversification.

Index Model

A model that describes the relationship between the returns of a stock and the returns of a market index.

Covariance

A measure of the degree to which two variables move in relation to each other, with a positive covariance indicating that they tend to move in the same direction.