A Particular Employee Is Provided with a Very Aggressive Sales

question 15

Essay

A particular employee is provided with a very aggressive sales goal for next year.Management proposes that if sales double,the employee will receive a 50 percent increase to his/her base pay in addition to his/her sales-based commissions.This represents a substantial increase in compensation,and management is confident the employee will be motivated to increase task behaviour.
Two months into the program,management notices the employee is actually less motivated.
Using expectancy theory,explain possible rationales that may justify the decreased level in motivation and associated task behaviour.(You may make any additional assumptions)

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Definitions:

Interest

The fee charged for borrowing money, often expressed as a percentage of the principal amount.

Maturity Date

The specified date on which the final payment of a loan or other financial instrument is due to be paid.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governmental entities, entitling them to receive interest payments and the return of principal.

Issuing Corporation

A company that sells or offers its shares to the public or to private investors.