$2.$ Compensation Plan Elements

Compensation Plan Elements

This activity is important because as a manager, you should know how compensation methods are related to motivation theories. Compensation may be offered at the individual, group, and organizational level, depending on what type of performance is to be rewarded. Compensation plan elements use principles of equity theory, expectancy theory, and goal$-$setting theory in order to encourage direction, intensity, and persistence of effort toward organizational and individual goals.

The goal of this activity is to demonstrate your knowledge of motivation theories by associating them with elements used in compensation systems.