According to the Expectancy Theory, Which of the Following Is

question 109

Multiple Choice

According to the expectancy theory, which of the following is true of 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 are 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.

---

Definitions:

Securities Exchange Act

A U.S. federal law that regulates the trading of securities such as stocks and bonds in the secondary market, ensuring transparency and fairness.

Misstatement

An error or inaccuracy in stating facts or details, often found in financial accounts or reports.

GAAS

Generally Accepted Auditing Standards; guidelines that auditors follow when conducting audits on companies' financial statements.

GAAP

Stands for Generally Accepted Accounting Principles, a set of accounting standards and practices used in the United States to ensure consistency and transparency in financial reporting.