According to the Expectancy Theory, Which of the Following Is

question 18

Multiple Choice

According to the expectancy theory, which of the following is true about instrumentality?

• A)Managers promote high levels of instrumentality when they link performance to desired outcomes.
• B)Managers promote instrumentality by ensuring that rewards are distributed to employees on the basis of their rank.
• C)Managers create low levels instrumentality when the distribution of outcomes available in an organization is performance-based.
• D)Managers create low levels of instrumentality when they link effort to performance.
• E)Managers promote low levels of instrumentality when they communicate to employees that high performance will lead to a pay raise in the future.

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Definitions:

Income Return

A measure of the income generated by an investment, usually expressed as a percentage of the investment's cost.

Capital Structure Weight

The proportion of debt and equity that composes a company's financing of its operations and growth, often affecting its risk and return.

Tax Rate

The extent to which the government extracts a percentage of income as taxes from businesses or people.

Market Value

The current exchange rate for acquiring or disposing of a service or asset.