General Studies · Organizational Behavior
A regulator introduces performance-linked pay, but employees perceive the underlying promotion decisions as opaque. Based on Vroom's Expectancy Theory, which employee response is most consistent?
- 1Increased motivation due to higher pay ceilings
- 2Neutral impact as hygiene factors are fully satisfied
- 3Decline in effort due to a breakdown in the expectancy-instrumentality link✓
- 4Improved morale due to performance recognition effects
Correct answer
Decline in effort due to a breakdown in the expectancy-instrumentality link
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