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ACCA Applied Knowledge · Business and Technology · Motivating individuals and teams

A firm introduces a profit-related bonus paid to all staff equally at year end. Employees on the production line say they cannot see how their own work affects the bonus. Which motivation theory best explains why the bonus is weak at motivating them?

Vroom's expectancy theory best explains it. Motivation depends on people believing their effort leads to performance and that performance leads to reward. Because the line workers cannot see how their work affects the bonus, the perceived link is weak, so the bonus does little to motivate them.

  1. AVroom's expectancy theory, because the link between effort and reward (instrumentality) is perceived as weakCorrect
  2. BMaslow's hierarchy, because bonuses only satisfy physiological needs
  3. CHerzberg's theory, because any pay is a motivator
  4. DTaylor's scientific management, because workers prefer autonomy to money

Explanation

Expectancy theory says motivation depends on expectancy (effort leads to performance), instrumentality (performance leads to reward) and valence (value of reward). Staff who cannot see how their effort affects the bonus perceive a weak link, so motivation falls. Herzberg classes pay as a hygiene factor, not a motivator, and Taylor assumed money was the main motivator.

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