Which of the following terms refers to an incentive plan in which ...

[mikaylakyoung]

Which of the following terms refers to an incentive plan in which a person is paid a sum for each item he or she makes or sells, with a strict proportionality between results and rewards?
 
  A) variable pay
  B) straight piecework
  C) straight hourly pay
  D) standard hour plan

Question 2

Briefly describe Vroom's theory and its three components. How can managers use Vroom's theory as they develop effective incentive plans?
 
  What will be an ideal response?

[LP]

Answer to Question 1

Answer: B

Answer to Question 2

Answer: Vroom states that a person's motivation to exert some level of effort or specific behavior is a function of three things: valence, instrumentality, and expectancy. Valence is the perceived value the person attaches to the reward. Instrumentality is the perceived relationship between successful performance and obtaining the reward. Expectancy is the probability that performance of the behavior or exertion of the effort will result in achieving the desired reward. Motivation is equal to E  I  V. Victor Vroom would say there should be a clear link between effort and performance, and between performance and reward, and that the reward must be attractive to the employee.

[mikaylakyoung]

TY

[LP]

Happy to Help