Question: using the following definitions/case studies answer these two questions below: 1. In designing a compensation program, it's important to consider the stage of the company

using the following definitions/case studies answer these two questions below:

1. In designing a compensation program, it's important to consider the stage of the company and the role of the employees. At early stages, a focus on revenue may be more appropriate, while a more mature business can consider profitability. The compensation program should align with the business goals, and at a department level, it should align with the departmental goals. There needs to be alignment with the company vision and the department goals to make sure individuals in the department are properly aligned to meet the department goals.

2. Performance pay is most effective in sales-related or customer success roles due to the connection between the customer's experience and the success of the business. This applies particularly in consulting industries where experience matters more than product. The speaker gives the example of selling a water bottle vs. HR consulting, where having an experienced salesperson is more important in the latter. The speaker suggests that performance pay is important in sales, especially in HR consulting.

Questions:

1. Discuss how employee job attitudes serve as the link between reward systems and employee job behaviour.

2. Discuss the key aspects of expectancy theory. What are the practical implications of this theory for managers?

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