Companies Generally Base Most of the Divisional Managers' Compensation on Which

question 21

Multiple Choice

Companies generally base most of the divisional managers' compensation on which of the following?

• A)management-based performance.
• B)performance based on financial measures.
• C)the company's stock performance.
• D)accounting-based performance.

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Definitions:

Overjustification Effect

A psychological phenomenon where external rewards can reduce intrinsic motivation for a task, due to the individual attributing their behavior to the reward rather than their own interest.

Extrinsic Rewards

Benefits given by an external source, such as money, grades, or praise, which are used to motivate certain behaviors.

Intrinsic Enjoy

Finding inherent satisfaction and pleasure in an activity, regardless of external rewards or outcomes.

Self-Handicapping

Self-handicapping is a strategy where individuals create obstacles for themselves as an excuse for potential failure, protecting their self-esteem.