According to Reinforcement Theory,what Happens When Organization-Controlled Rewards Stop

question 32

Multiple Choice

According to reinforcement theory,what happens when organization-controlled rewards stop?

• A) Employees are motivated to work on their own.
• B) Intrinsic motivation disappears.
• C) Desired behaviours eventually disappear.
• D) There is no change in behaviour.

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Definitions:

Unit Contribution Margin

The amount each unit sold contributes towards covering fixed costs and generating profit, calculated as the selling price per unit minus the variable cost per unit.

Operating Income

Earnings before interest and taxes (EBIT), measuring a company's profit from its operational and regular business activities.

Fixed Costs

Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.