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?
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.
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Which of the following statements about a flexible budget is correct?
a. A flexible budget uses realized (actual) prices along with all other original (simple) budget assumptions. b. A flexible budget uses realized (actual) labor costs along with all other original (simple) budget assumptions. c. A flexible budget uses realized (actual) supplies costs along with all other original (simple) budget assumptions. d. A flexible budget uses realized (actual) facilities costs along with all other original (simple) budget assumptions. e. A flexible budget uses realized (actual) volume along with all other original (simple) budget assumptions.
When preparing to go to work, a woman should:
A) Shower daily B) Always wear a dress C) Wear heavy perfume D) All of the above E) None of the above