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.

Match each motivation theory to the corresponding type of compensation plan.

Goal$-$Setting Theory: Individual$-$Focused Goal$-$Setting Theory: Unit$-$Focused Extrinsic Motivation Equity Theory Expectancy Theory: Instrumentality

Match each of the options above to the items below.

Ian is certain that he will be paid $$25$ for every claim he processes, so he is motivated to work faster. $($Piece$-$Rate Systems$)$

No answer

Kyle knows that each person in his job level receives the same increase in pay for a high performance appraisal rating. $($Merit Pay$)$

No answer

Kacee$$s boss set a standard that each employee must secure $$200,000$ in new contracts in the next $60$ days. Everyone that does so will receive a $5$ percent bonus. $($Lump$-$Sum Bonuses$)$

No answer

Megan$$s shift supervisor issued the challenge that each employee can earn a bonus if material waste is decreased by $10$ percent in the next $30$ days. $($Gainsharing$)$

No answer

In the call center where Meredith works, the managers award gift cards or other small prizes at unpredictable times to employees who are overheard giving exceptional customer service. $($Recognition Awards$)$

No answer