Psychological Theories on Financial Incentives and Motivation

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Questions and Answers

What is the primary way in which incentives influence motivation according to expectancy theory?

  • By increasing the perceived valence of a performance goal (correct)
  • By enhancing the perceived difficulty of a performance goal
  • By decreasing the perceived value of a performance goal
  • By reducing the perceived relationship between effort and outcome

Which theory suggests that money has symbolic value due to its perceived relationship to prestige and status?

  • Goal-setting theory
  • Agency theory
  • Expectancy theory (correct)
  • Self-efficacy theory

What is the goal of an individual according to expectancy theory?

  • To achieve a high level of motivation
  • To perceive a high value in a performance goal
  • To focus on effort rather than outcome
  • To choose goals related to performance (correct)

Which theory emerged from economic-focused literature on executive compensation?

<p>Agency theory (B)</p> Signup and view all the answers

According to which theory do individuals choose goals related to performance?

<p>Expectancy theory (C)</p> Signup and view all the answers

What is the primary relationship between effort, performance, and outcome according to expectancy theory?

<p>Obvious (A)</p> Signup and view all the answers

Which theory emphasizes the role of incentives in developing a commitment to goals, thereby enhancing performance?

<p>Goal-setting theory (B)</p> Signup and view all the answers

Which theory suggests that individuals regulate their self-concepts, cognitions, emotions, and behaviors in relation to their goals?

<p>Self-regulation theory (D)</p> Signup and view all the answers

Which theory assumes that individuals will minimize their effort unless it contributes to their own economic well-being?

<p>Agency theory (A)</p> Signup and view all the answers

Which theory predicts that the interdependence between agents who anticipate a financial incentive based on teams will enhance cooperation and thus performance?

<p>Agency theory (D)</p> Signup and view all the answers

Which theory assumes that individuals will perceive rewards as fair only if the rewards are proportionate to their contributions?

<p>Equity theory (D)</p> Signup and view all the answers

Which theory proposes that financial incentives affect valence and the expectancies of individuals, leading to higher goal levels and commitment concerning personal, team, and organizational goals?

<p>Self-regulation theory (C)</p> Signup and view all the answers

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