According to Expectancy Theory,linking Valued Rewards to Higher Job Performance

question 101

Multiple Choice

According to expectancy theory,linking valued rewards to higher job performance mainly increases motivation by:

• A)strengthening the E-to-P expectancy.
• B)increasing the valence of a $1,000 bonus.
• C)weakening the E-to-P expectancy.
• D)strengthening both the E-to-P and P-to-O expectancies.
• E)strengthening the P-to-O expectancy.

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Definitions:

Real Purchasing Power

The amount of goods and services that can be purchased with a unit of currency, taking into account changes in prices due to inflation or deflation.

Income Effect

The change in an individual's consumption choices resulting from a change in real income, due to price changes or income changes.

Substitution Effect

The change in consumption patterns due to a change in relative prices, causing consumers to replace pricier items with more affordable substitutes.

Substitution Effect

The change in consumption patterns due to a change in relative prices, causing consumers to substitute away from more expensive items to cheaper alternatives.