Problem 5 Flashcards
A1 Thierry: What is the expectancy theory?
Someone will behave in a certain way depending on the situation and which outcome they expect will give them the most utility (Expectancy, Instrumentality, Valence)
A1 Thierry: What is the reinforcement theory?
Behavior is a function of its consequences (reinforcements, punishments)
A1 Thierry: What is the goal-setting theory?
Financial incentives lead to greater acceptance of difficult performance goals, which then improves job performance
A1 Thierry: What is the equity and justice theory?
People are motivated to reduce inequality, so they try to create balance between the inputs or contributions they make and the beneficial outcomes they receive (the input-output ratio)
A1 Thierry: What is the cognitive evaluation theory?
Employees’ intrinsic motivation is affected by performance-related financial incentives
A1 Thierry: What is the reflection theory?
Salary and wages provide information that is crucial to a person’s self-identity
A1 Thierry: What is the Agency theory?
The principal (manager) wants to monitor their agents (employees) to see if they are pursuing the company goals, or their own goals
A1 Thierry: What is the resource dependency theory?
The degree of control that work units have over payments is limited to the resources they can provide or withhold
A1 Thierry: What is the tournament theory?
The working environment within a company may be seen as an arena in which a tournament takes place between employees
A1 Thierry: What is the neoclassical labour market theory?
An effective wage ratio for a given population can be found by looking at the point in the curve where supply and demand intersect
A1 Thierry: What is the efficiency wage theory?
A company will lure or attract more qualified employees if they offer a relatively high salary level
A1 Thierry: According to the goal-setting theory, which 4 conditions are crucial for high job performance?
- Goals should be set at a high, complex level
2. Goals should be very specific in terms of desired outcomes 3. Feedback should be given regularly 4. Employees must accept these goals
A1 Thierry: According to the equity theory, what are the 3 facets of justice?
- Procedural justice = formal work procedures are conducted fairly
2. Interactional justice = interactions with colleagues and supervisors are conducted fairly 3. Distributive justice = profits and wages are distributed fairly among workers
A1 Thierry: What can cause employees to react defiantly to unfair work situations?
High scores of negative affect + low scores of agreeableness
A1 Thierry: What are the three different influences that extrinsic rewards can have on an employee? (cognitive evaluation theory)
-
Informational ⇒ financial rewards can inform employees about their level of competence (makes intrinsic motivation remain intact)
2. **Controlling** ⇒ financial rewards can make employees feel controlled by an external source (makes their locus of control external, leading in intrinsic motivation decreasing) 3. **Motivational** ⇒ financial rewards carry a message of negative feedback when someone earns less or does not qualify for a bonus (sends a signal that they are inadequate, which makes intrinsic motivation decrease
A1 Thierry: What are the effects of the 5 different types of rewards?
- Unexpected payouts ⇒ does not affect intrinsic motivation
2. Payouts that are not task-dependent ⇒ does not lead to a decrease in intrinsic motivation 3. Task-dependent payouts ⇒ has more of a negative than positive impact on intrinsic motivation 4. Performance-based payouts ⇒ mixed results 5. Verbal rewards ⇒ leads to an increase in intrinsic motivation
A2 Jenkins: Financial rewards are related to…
…performance quantity, but not quality
A2 Jenkins: The strongest relationship (setting) was found in…
…experimental simulations
A2 Jenkins: Was it found that financial incentives might harm intrinsic motivation?
Yes
A3 Gunderson: What is labour hoarding?
When the company keeps the worst workers and underutilizes them just to avoid the fixed hiring costs
A3 Gunderson:What is an option value?
the value associated with qualifying for valuable rewards if an employee continues to do the same job for another year (that’s why people in higher positions have a salary that is so generous, because they no longer have any promotion opportunities)
A3 Gunderson: What is the winner’s curse?
when a company acquires a person in a top position from another company, however this other company may have deliberately chosen not to make a counter-offer because they have private information
