ACCA Applied Knowledge · Business and Technology · Motivating individuals and teams
A company introduces a scheme where sales staff earn a bonus only if they exceed a clearly stated target that they believe is achievable and that is worth having. Which theory of motivation best explains why this scheme may work?
Vroom's expectancy theory best explains it. Motivation is strong when employees believe effort will achieve the target, that achieving it brings the reward, and that the reward is valued. The scheme links an achievable target to a worthwhile bonus, satisfying all three conditions.
- AMaslow's hierarchy of needs
- BVroom's expectancy theoryCorrect
- CMcGregor's Theory X
- DHerzberg's hygiene theory
Explanation
Expectancy theory says motivation depends on expectancy (effort leads to performance), instrumentality (performance leads to reward) and valence (the reward is valued). The scheme links an achievable target to a valued bonus. Theory X is a view of managers about workers, not a process explanation of reward schemes.
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