According to the expectancy theory, compensation systems differ according to their impact on the components of motivation; the main influence of compensation is on _____.
32.Which of the following components is a perceived link between behavior and pay?
33._____ perception is the perceived link between effort and performance.
34.Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. Followers of cognitive evaluation theory are likely to question this assumption, arguing that:
A.monetary rewards may decrease extrinsic motivation.
B.intrinsic rewards do not affect job satisfaction.
C.monetary rewards may decrease intrinsic motivation.
D.extrinsic rewards are not effective for managers.
E.behaviors are determined by genes rather than reinforcement.
35.Which of the following is most likely to provide intrinsic motivation?
A.A sponsored vacation to Europe
B.A monthly salary of $10,000
D.Paid leave for three months
E.An interesting work assignment
36.Which of the following is most likely to provide extrinsic motivation to employees?
C.Variety of work
37.Separating the functions of principals and agents is likely to result in:
A.immobility of financial capital.
B.diversification of investment risk.
C.reduction in agency costs.
D.better goal congruence.
38.According to the agency theory, the principals are the _____.
39.Agency costs are likely to arise when _____.
A.principals and agents have different goals
B.owners and managers are the same
C.stockholders are involved in day-to-day operations of the company
D.the stockholders are aware of the degree to which the agents are pursuing the principal's goals
E.there is information symmetry between the agent and the principal
40.Which of the following is true of how agents may differ from principals?
A.Agents can diversify the risks more easily.
B.Agents are more likely to pursue projects with high potential payoffs.
C.Agents can diversify investments better.
D.Agents are more averse to risk.
E.Agents are likely to prefer more emphasis on uncertain incentives than base pay.
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