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

A retailer pays sales staff a bonus only if the whole store meets its quarterly profit target. Staff say the target is unrealistic and that their own effort has little effect on the result. Which motivation theory best explains why the scheme is failing to motivate?

Vroom's expectancy theory explains it. Staff do not believe their effort will achieve the store target, so the perceived link between effort and reward is weak. Even a valued bonus will not motivate if people think it is unattainable through their own efforts.

  1. AVroom's expectancy theory, because the link between effort and reward (expectancy) is weakCorrect
  2. BMaslow's hierarchy of needs, because staff have not satisfied their physiological needs
  3. CHerzberg's theory, because bonus pay is a motivator that is too small

Explanation

Expectancy theory says motivation depends on believing effort leads to performance, performance leads to reward, and the reward is valued. Staff doubt that their effort affects the store result, so expectancy is low. Maslow and Herzberg do not address this perceived effort-reward link; Herzberg treats pay as hygiene anyway.

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