MGMT Exam 3

Agency Theory

focuses on divergent interests and goals of the organization's stakeholders and the ways compensation can be used to align these interests and goals.

Define servant leadership and understand the characteristics of a servant leader

focuses on increased service to others rather than to yourself Characteristics of servant leader: listening, empathy, healing, awareness, persuasion, conceptual thinking, foresight, stewardship, commitment to growth of people, building community

3 components of Expectancy theory:

i. Expectancy: does the person know what he has to do and will he be able to accomplish the behavior desired? ii. Instrumentality: belief that a given level of performance will lead to specific outcomes iii. Valence: the value a person places on future outcomes, or "what's in it for me?"

Outline the 5 steps of the added-value negotiation process

1.Clarify interest 2.Identify options 3.Design alternative deal packages 4.Select a deal 5.Perfect the deal

Discuss five tips for managing emotions in the negotiation process

1.Ideal emotions 2.Managing emotions 3.Hot buttons 4.Keeping balance 5.Emotions after

Define negotiation

A give-and-take decision-making process involving 2 or more parties with different preferences

Define transformational leadership

A process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and follower.

Define the concept of broad banding as it relates to compensation

Collapses many traditional salary grades into a few wide salary bands

Consultation

Getting others to participate in planning, making decisions, and changes

Coalition tactics

Getting others to support your efforts to persuade someone

Explain how goal-setting can be an effective motivational tool for managers

Goals help employees focus on exactly what needs to be done, leads to higher performance Goal achievement leads to job satisfaction

Define dominating

High concern for self and low concern for others

Define conflict and discuss the nature of conflict in organizations

Occurs when 1 party perceives that its interests are being opposed or negatively affected by another party

Label Maslow's Hierarchy of Needs

Self-Actualization Esteem Love Safety Physiological

Define conflict states

Shared perceptions among members of the team about he intensity of disagreement over either tasks

Explain how stock options work as a component of executive compensation

Stock options are considered a form of executive compensation due to the opportunity to receive a price advantage on a companies offering that would otherwise be unavailable to individuals outside the company or non-vested employees. Considered a perk/benefit for time spent working with organization.

Discuss the basic premises of the Path Goal Theory

a. Leader behaviors are effective when employees view them as a source of satisfaction or as paving the way to future satisfaction; they do this by reducing roadblocks, providing guidance and support, linking rewards to goal accomplishment

Discuss the basic premises of Fiedler's Contingency Theory

a. Leaders effectiveness is contingent on the extent to which a leaders style fits or matches characteristics of the situation at hand b. Based on leader-member relations, task structure, and position power c. Also focused on the idea that managers had a predominant style of leadership that was difficult to change *Goes beyond behavior and traits... situations matter

Define obliging

Tend to show low concern for yourself and a great concern for others

Define Power

The ability to marshal human, informational, and other resources to get something done; influencing others

Task Identity

The degree to which the individual completes an identifiable piece of work - Does the individual work on a product/project from beginning to end?

Feedback

The extent to which an individual receives direct and clear information about how effectively he/she is performing the job

Task Significance

The extent to which the job affects the lives of other people within or outside the organization

Define the concept of a job evaluation

The process of determining the relative internal worth of jobs Is composed of: - Compensable Factors: characteristics of jobs that the firm values and pays - Weighting Scheme: Accounts for differing importance of compensable factors

Expectancy theory

a. holds that people are motivated to behave in ways that produce desired combinations of expected outcomes. b. People are motivated to work when they BELIEVE they can get what they want from their job High motivation only comes in the case of high levels of all three components.

Define Dysfunctional Conflict

Threatens an organization's interests

Summarize the basic principles of Equity theory

a. model of motivation that explains how people strive for fairness and justice in social exchanges or give-and-take relationships. b. Focus on an individual's feelings of how fairly he or she is treated in comparison with others c. Person compares their inputs to their outcomes. If inputs are lower than outcomes, then they are over rewarded. If inputs are higher than their outcomes, then they are under rewarded.

Define intergroup conflict

conflict states and conflict processes; in-group think; create a psychologically safe climate to resolve

Explain the relationship between emotional intelligence and leadership in organizations

emotional intelligence has a small, positive, significant effect and An input to transformational leadership

salary workers

employees whose compensation is computed on the basis of weekly, biweekly, or monthly periods

Exchange

making explicit or implied promises and trading favors

merit increase grid

merit increase grid combines an employee's performance rating with employee's position in a pay range to determine size and frequency of his or her pay increases.

supportive-behaviors

showing concern for well being and needs of employees; being friendly and approachable and treating employees equally

Skill Variety

the degree to which the job required to perform a variety of tasks that require a number of different skills and abilities

Inspirational Motivation

use charisma, attractive vision of the future

piecework

work paid according to the number of units produced

Define work-family conflict

occurs when the demands or pressures from work and family are mutually incompatible, balance is key to resolve

Achievement

oriented behaviors: set hard goals, emphasize excellence, demonstrate confidence in employees

Individual Consideration

pay special attention to needs of followers, find ways for people to develop and grow

Work-facilitation behaviors

planning, scheduling, organizing, and coordinating work, mentoring, counseling, and giving feedback

group-oriented decision-making behaviors:

posing problems rather than solutions to the work group, want everyone to participate, giving necessary info

representation and networking behaviors:

presenting workgroup in a good way to others, keeping good relationships w people, participating in ceremonies and doing favors for others

hourly work

work paid on an hourly basis

Behavior Theory

b.Behavior: attempts to identify the unique behaviors displayed in effective leaders i. Task oriented: ensure that people, equipment, and other resources are used in an efficient way to accomplish the mission of the group ii. Relationship-oriented: enhance employees skills and the create positive work relationships 1.Servant leadership-increase service to others 2.Empowering-how leaders creates psychological empowerment in others 3.Consideration-creating mutual respect iii. Passive: "laissez-faire" leadership represents general failure to take responsibility for leading iv. Transformational:

Compare and contrast distributive and integrative bargaining

Distributive negotiation is a traditional win-lose situation, and integrative negotiation is a progressive win-win strategy

Summarize the basic principles of Job Design for motivation

any set of activities that involves alteration of specific or interdependent systems of jobs; intent of improving the quality of employee job experience and on-the-job productivity - Job enlargement - Job rotation - Job Enrichment

Trait Approach

attempts to identify personality characteristics or interpersonal attributes that can be used to differentiate leaders from followers

Pay Policy Line

- Mathematical expression that describes the relationship between a jobs pay and its job evaluation points

List and explain the three main needs according to McClelland's Learned Needs theory

-Need for achievement: drive to excel, overcome obstacles, solve problems, and rival and surpass others -Need for power: the desire to influence, coach, or teach, or encourage others to achieve -Need for affiliation: the desire to maintain social relationships, to be liked, and to join groups

explain the key ways transformational leaders change their subordinates

1.Inspirational Motivation- use charisma, attractive vision of the future 2.Idealized Influence- sacrificing for the good of the group, being a role model with high ethical standards 3.Individual Consideration- pay special attention to needs of followers, find ways for people to develop and grow 4.Intellectual Stimulation- encourage creativity, innovation, and problem-solving

Label the job characteristics model

An effort by researchers to determine how work can be structured so that employees experience intrinsic motivation - skill variety - task identity - task significance - autonomy - feedback

List and describe the major components of executive compensation packages (salary/bonus, stock options, stock grants)

Base Salary Executive Short-Term Incentives o Annual bonuses based on the pay-for-performance strategy Executive Long-Term Incentives o Right to buy company stock at discounted price o Executive pay varies with performance of stock market Stock Grants o Stock given to employees as compensation/part of compensation Executive Benefits o Health insurance, life insurance, retirement plans, paid vacations, payment of mortgage interest Executive Perquisites/Perks

Key Jobs

Benchmark jobs that have relatively stable content and are common to many organizations so that market-pay survey data can be obtained

Explain how the job characteristics model can be used to motivate employees

Can be used to increase job satisfaction Managers can enhance employees' intrinsic motivation Increases in quality of performance

Explain when each of the different influence tactics is likely to be most and least effective

Consultation, Inspirational Appeal, Rational Persuasion - All effective & socially acceptable for influencing subordinates, peers or superiors Strong at the core- Most effective at building commitment Pressure, Coalition, Legitimating - All ineffective and socially unacceptable Targets feel manipulated Ingratiation & Exchange - Effective for influencing subordinates & peers but not superiors

Distinguish between content and process theories of motivation

Content theories focus on what variables affect motivation, where as process theories focus on how the variables affect it

Ingratiation

Getting someone in a good mood prior to making a request (brown nosing)

Define compromising

Give-and-take approach with a moderate concern for both self and others

Define Personality Conflict

Interpersonal opposition based on personal dislike or disagreement

Distinguish between intrinsic motivation and extrinsic motivation.

Intrinsic: The pursuit of an activity for its own sake. Extrinsic: The pursuit of an activity for external rewards, such as money or fame.

Define Functional Conflict

Is constructive or cooperative conflict characterized by consultative interactions, focus on the issues, mutual respect, and useful give and take

Autonomy

The degree to which the job provides substantial freedom, independence, and discretion in both scheduling and determining the procedures used in completing the job

Summarize research findings on the work outcomes that McClelland's theory allows us to predict

a. Managers who have a high need for affiliation are not typically as successful because they may have difficulty resolving conflicts and be more likely to make exceptions to make people happy b. Managers who have a high need for power will produce a strong work ethic and commitment to the organization, but may not possess the required flexibility and people-centered skills to be effective in leadership roles. c. Managers who have a high need for achievement are the best leaders, although they can have a tendency to demand too much of their staff in the belief that they are all similarly and highly achievement-focused and results-driven.

Position (formal) power:

legitimate, reward, coercive (associated with a job or position) i. Legitimate: power is derived from a position of authority inside the organization and is sometimes referred to as a formal authority ii. Reward power: exists when someone has control over the resources or rewards another person wants; obtains compliance by promising/granting rewards iii. Coercive power: exists when a person has control over punishments in an organization; operates primarily on the principle of fear

Define Psychological Empowerment

occurs when employees feel a sense of meaning, competence, self-determination, and impact at work. i. Meaning: belief that your work values and goals align with those of your manager, team, or employer. ii. Competence: Personal evaluation of your ability to do your job iii. Self-determination: Sense that you have control over your work and its outcomes. iv. Impact of work: Feeling that your efforts make a difference and affect the organization.

Justice Theory

organizational justice refers to the extent to which people perceive that they are treated fairly at work. --Distributive, procedural, interactional

Procedural Justice

perceived fairness of the process and procedures used to make allocation decisions. 1. The degree to which processes used to reach a distribution are perceived as fair. Influenced by: a. Consistency, bias suppression, accuracy, correctability, representativeness, ethicality

Distributive Justice

reflects the perceived fairness of how resources and rewards are distributed or allocated. 1. The extent to which individuals believe that the outcomes they receive are just/fair 2. Similar to equity theory. Do you think the outcome or end result is fair?

Interactional Justice

relates to the quality of the interpersonal treatment people receive when procedures are implemented. 1. Perceived when people treat others respectfully and explain decisions adequately.

Market Survey Approach

- Emphasize external comparisons - Bases pay on the market surveys that cover as many key jobs as possible

Pay Grades

- Grouping jobs of similar worth or content together for pay administration purposes

List the basic forms of compensation (hourly/salary, exempt/nonexempt

- hourly work - piecework - salary workers - nonexempt workers - exempt employees

Explain when each of the different forms of power is most appropriate to use in organizations:

-Legitimate Power- used in hiring, assigning, monitoring, and appraising employees. -Reward Power- used to create a highly motivated workforce through incentives. -Coercive Power- used to gain respect from the workforce, but can result in detriment if overused. -Expert Power- used to gain influence over subordinates for the purpose of guiding or coaching. -Referent Power- used to encourage subordinates to go above and beyond what is expected of them.

List and explain the most common causes of conflict

1.Incompatible personalities or value systems 2.Overlapping or unclear job boundaries 3.Competition for limited resources 4.Unreasonable or unclear policies, standards or rules 5.Organizational complexity 6.Interdependent tasks 7.Inadequate communication 8.Interdependent/intergroup competition 9.Unreasonable deadlines or extreme time pressure 10.Decision making by consensus 11.Collective decision making Unmet expectations

Describe the point system of job evaluation, and demonstrate how an organization would conduct a job evaluation using the point method

A quantitative job evaluation procedure that determines the relative value of a job by the total points assigned to it Steps Determine Compensable Factors Assign points to degrees of compensable factors Rate the job based on the compensable factors Total points and group into grades/classifications

Explain the differences between the following incentive rewards: bonus and raise

A raise is an incentive that is aded to the base of pay while a bonus is a reward that is given on top of pay.

Describe the 3 desired outcomes of conflict management

Agreement, stronger relationships, learning

Describe the relationship between pay and individual employee behavior from the following three perspectives: reinforcement theory, expectancy theory, and agency theory

All three theories focus on the fact that behavior-reward contingencies can shape behaviors Reinforcement Theory- In Thorndike's Law of Effect, a response followed by a reward is more likely to recur in the future. The importance of a person's actual experience in receiving the reward is critical. If high performance is followed by a reward, high performance is likely to be repeated. Expectancy Theory - says that motivation is a function of valence, instrumentality, and expectancy. Focuses on the link between rewards and behaviors and emphasizes expected (rather than experienced) rewards and on the effects of incentives. Motivation is a function of this. Agency Theory - focuses on divergent interests and goals of the organization's stakeholders and the ways compensation can be used to align these interests and goals.

Non-Key Jobs

Jobs that are unique to organizations and cannot be directly valued or compared through the use of market surveys

Pressure

Demanding compliance or using intimidation or threats.

Explain the most common reasons for avoiding conflict

Harm, anger, rejection, failing, etc.

Reinforcement Theory

In Thorndike's Law of Effect, a response followed by a reward is more likely to recur in the future. The importance of a person's actual experience in receiving the reward is critical. If high performance is followed by a reward, high performance is likely to be repeated.

Explain the major differences between team compensation plans and individual incentive plans

Individual has solo performance and rewards while team has cooperative performance and rewards.

Discuss the most frequent styles of conflict handling

Integrating, Dominating, Obliging, Avoiding, and Compromising

Define integrating

Interested parties confront the issue and cooperatively identify the problem, generate and weigh alternatives and select a solution

Explain the concepts of internal and external equity with regard to compensation

Internal Equity: - Job Structure: Relative pay of jobs (range of pay often expressed by salary grades) - Administrative Tool: job evaluation - Focus of Employee Pay Comparisons: internal equity - Consequences of Equity Perceptions: internal employee movement, cooperation, employee attitudes External Equity -Pay Level: average pay, including wages, salaries and bonuses -Administrative Tool: market pay surveys - Focus of Employee Pay Comparisons: external employee movement, labor costs, employee attitudes

Explain the difference between leading and managing

Managers perform functions associated with planning, investigating, organizing and control while leaders inspire others, provide emotional support and try to get employees to rally around a common goal

Describe the following important components in the process of collecting market wage date: market pay surveys, benchmarking, key/nonkey jobs

Market Pay Surveys: Provide information about the external worth of jobs by seeking info on the wages other employers pay in the organizations relevant labor market Benchmarking: Procedure by which an organization compares its own practices against the competition Key Jobs: Benchmark jobs that have relatively stable content and are common to many organizations so that market-pay survey data can be obtained Non-key Jobs: Jobs that are unique to organizations and cannot be directly valued or compared through the use of market surveys

Explain how an organization combines job evaluation and market pay survey data to produce a pay structure. Include the concepts of pay policy-line and pay grades in your discussion

Market Survey Approach Emphasize external comparisons Bases pay on the market surveys that cover as many key jobs as possible Pay Policy Line Mathematical expression that describes the relationship between a jobs pay and its job evaluation points Pay Grades Grouping jobs of similar worth or content together for pay administration purposes

Define conflict process

Members' interactions aimed at working through task and interpersonal disagreements

Describe how a merit pay plan works and explain merit pay using the merit increase grid

Merit pay programs are annual pay increases that are usually linked to performance appraisal ratings. The size and frequency of pay increases are most often determined by performance rating (since better performing employees should be rewarded more than low performers) and position in range (comparison). A merit increase grid combines an employee's performance rating with employee's position in a pay range to determine size and frequency of his or her pay increases.

Define avoiding

Passive withdrawal from the problem and active suppression of the issue are common

List and describe the common forms of conflict

Personality conflict, Intergroup conflict, Work-Family conflict, Incivility

Benchmarking

Procedure by which an organization compares its own practices against the competition

Discuss the pros and cons of each of the individual incentive plans

Profit Sharing: Pro: - can encourage employees to think more like owners - Labor costs are automatically reduced during difficult economic times, and wealth is shared during good times. Con: - Workers may perceive their performance has less to do with profit than top management decisions over which they have little control.

List and describe the following individual incentive plans: profit sharing, stock options, employee stock ownership plans

Profit Sharing: payments are based on a measure of organization performance (profits), and payments do not become a part of base pay. Stock Options: plan that give employees the opportunity to buy company stock at a previously fixed price. Employee Stock Ownership Plans: give employers certain tax and financial advantages when stock is granted to employees.

Describe individual incentive plans and discuss their pros and cons

Pros: can be effective when work is designed for individuals, simple and repetitive, stable, and no need for integration. Con: Problems occurs because it creates competitive environments, it is costly to maintain, and can hurt organizational culture.

Market Pay Surveys

Provide information about the external worth of jobs by seeking info on the wages other employers pay in the organizations relevant labor market

Define the concept of leadership

The process whereby an individual influences a group or individuals to achieve common goal.

Define in-group think

Too much cohesiveness can increase in-group thinking leading to challenges

Inspirational appeals

Trying to build enthusiasm by appealing to others emotions, ideas or values

Rational Persuasion

Trying to convince someone with reason, logic, or facts

Outline the major provisions of the Equal Pay Act of 1963 and the Fair Labor Standards Act of 1938

a. Comparable Worth (Equal Pay Act of 1963): Comparable worth (or pay equity) is a public policy that advocates remedies for any undervaluation of women's jobs. i. Based on the idea that individuals should obtain equal pay, not just for jobs of equal content, but for jobs of equal value or worth. ii. Courts have consistently ruled that using the going market rates of pay is acceptable defense in comparable worth litigation suits b. Fair Labor Standards Act of 1938: established a minimum wage and overtime pay rate. i. Hourly Work: paid on an hourly basis. ii. Salary Work: compensation is computed on the basis of weekly, biweekly, or monthly pay periods. iii. Minimum wage is $7.25 an hour. It is the lowest hourly amount that employers are legally allowed to pay. iv. Exempt - those employees (executive, professional, administrative and outside sales) not covered by the FLSA and not eligible for overtime pay.

Discuss research on the relationship between gender and leadership in organizations

a. Men and women are equally assertive b. Men display more task leadership; women display more social leadership c. Men use a more autocratic and directive style; women use a more democratic or participative style d. Women executives, when rated by peers, managers, and direct reports, scored higher than male counterparts on a variety of effectiveness criteria

List and describe the different types of leader behavior, according to the Path Goal Theory

a. Path goal clarifying: clarifying employees' performance goals, providing guidance, clarifying standards and expectations, use positive and negative rewards b. Achievement-oriented behaviors: set hard goals, emphasize excellence, demonstrate confidence in employees c. Work-facilitation behaviors: planning, scheduling, organizing, and coordinating work, mentoring, counseling, and giving feedback d. Supportive-behaviors: showing concern for well being and needs of employees; being friendly and approachable and treating employees equally e. Interaction facilitation behaviors: resolving disputes, facilitating communication, encouraging sharing of minority opinions, emphasizing teamwork f. Group-oriented decision-making behaviors: posing problems rather than solutions to the work group, want everyone to participate, giving necessary info g. Representation and networking behaviors: presenting workgroup in a good way to others, keeping good relationships w people, participating in ceremonies and doing favors for others h. Value-based behaviors: establishing a vision, displaying a passion for it and supporting it; demonstrating self-confidence; communicating high-performance expectations and confidence in others abilities to meet their goals; giving positive feedback

List and describe nine common influence tactics

a.Rational persuasion: Trying to convince someone with reason, logic, or facts. b.Inspirational appeals: Trying to build enthusiasm by appealing to others emotions, ideas, or values. c.Consultation: Getting others to participate in planning, making decisions, and changes. d.Ingratiation: Getting someone in a good mood prior to making a request (brown nosing). e.Personal appeals: Referring to friendship and loyalty when making a request. f.Exchange: Making explicit or implied promises and trading favors. g.Coalition tactics: Getting others to support your efforts to persuade someone. h.Pressure: Demanding compliance or using intimidation or threats. i.Legitimizing tactics: Basing a request on one's authority or right, organizational rules or polices, or explicit/implied support from superiors.

Summarize the evolution of leadership theories, from trait theories to modern approaches to leadership

a.Trait: attempts to identify personality characteristics or interpersonal attributes that can be used to differentiate leaders from followers b.Behavior: attempts to identify the unique behaviors displayed in effective leaders i. Task oriented: ensure that people, equipment, and other resources are used in an efficient way to accomplish the mission of the group ii. Relationship-oriented: enhance employees skills and the create positive work relationships 1.Servant leadership-increase service to others 2.Empowering-how leaders creates psychological empowerment in others 3.Consideration-creating mutual respect iii. Passive: "laissez-faire" leadership represents general failure to take responsibility for leading iv. Transformational: c. Contingency: based on the premise that a leader's effectiveness is contingent on the extent to which a leader's style fits or matches characteristics of the situation at hand

Merit pay programs

are annual pay increases that are usually linked to performance appraisal ratings. The size and frequency of pay increases are most often determined by performance rating (since better performing employees should be rewarded more than low performers) and position in range (comparison).

Describe the different bases of power that leaders can use to affect followers' behavior

b.Position (formal) power: legitimate, reward, coercive (associated with a job or position) i. Legitimate: power is derived from a position of authority inside the organization and is sometimes referred to as a formal authority ii. Reward power: exists when someone has control over the resources or rewards another person wants; obtains compliance by promising/granting rewards iii. Coercive power: exists when a person has control over punishments in an organization; operates primarily on the principle of fear c. Personal (informal) power: expert, referent (power comes from individual) i. Expert power: derived from a person's expertise, skill, or knowledge on which others depend ii. Referent power: exists when one's personal characteristics and social relationships are used to gain compliance; others have a desire to identify and be associated with a person

Contingency

based on the premise that a leader's effectiveness is contingent on the extent to which a leader's style fits or matches characteristics of the situation at hand

Define the concepts of structural empowerment

based on transferring authority and responsibilities from management to employees. i. Increases 1. Effectiveness of decision making 2. Performance 3. Well-being 4. Job related attitudes ii. Pitfalls 1. Empowerment is not a zero-sum game 2. Empowerment is a matter of degree not an either-or proposition.

Legitimizing tactics

basing a request on on one's authority or right, organizational rules or policies, or explicit/implied support from superiors

Path Goal Clarifying

clarifying employees' performance goals, providing guidance, clarifying standards and expectations, use positive and negative rewards

nonexempt workers

employees covered by the overtime provisions of the Fair Labor Standards Act *must be paid time and one-half of their regular pay for all work performed after forty regular hours of work in a workweek

Exempt employees

employees who are not covered in the overtime provisions of the Fair Labor Standards Act *managers, supervisors, and white collar professional employees are exempted on the basis of their exercise of independent judgment and other criteria

Intellectual Stimulation

encourage creativity, innovation, and problem-solving

Value-based behaviors:

establishing a vision, displaying a passion for it and supporting it; demonstrating self-confidence; communicating high-performance expectations and confidence in others abilities to meet their goals; giving positive feedback

Personal (informal) power:

expert, referent (power comes from individual) i. Expert power: derived from a person's expertise, skill, or knowledge on which others depend ii. Referent power: exists when one's personal characteristics and social relationships are used to gain compliance; others have a desire to identify and be associated with a person

Discuss the criticisms of merit pay plans

focus on merit pay discourages teamwork, measurement of performance is inaccurate, too much emphasis on individual performance, and merit pay do exist - high performers paid more than marginal and poor performers.

Discuss the basic premises of gainsharing as a group incentive plan.

form of compensation based on group or plant performance rather than organization wide profits that does not become part of the employee's base salary. 9 conditions for effective gainsharing: - management commitment - need to change/commitment to continuous improvement - management's acceptance and encouragement of employee input - high cooperation and interaction - employment security - information sharing - goal setting - commitment of all involved - agreement on performance standard

Personal appeals

referring to friendship and loyalty when making a request

interaction facilitation behaviors

resolving disputes, facilitating communication, encouraging sharing of minority opinions, emphasizing teamwork

Idealized Influence

sacrificing for the good of the group, being a role model with high ethical standards

Expectancy Theory

says that motivation is a function of valence, instrumentality, and expectancy. Focuses on the link between rewards and behaviors and emphasizes expected (rather than experienced) rewards and on the effects of incentives. Motivation is a function of this.