Compensation 4.

You are the HR manager for a relatively small but growing software and consulting firm (e.g. a firm like, but larger than Horizon Performance). Although the firm uses a behaviorally-based performance appraisal system and project management, they do not use MBO or goal setting to evaluate individuals.

a. Briefly explain expectancy theory (look at sources beyond the textbook).

b. Identify and implement a specific type of individual and group incentive plan that would be considered an application of expectancy theory. Explain the motivational potential of both plans you chose. Be as detailed as possible with your plan.

c. Explain how you would prevent or minimize perceptions of inequity from occurring.