Think about your current or a previous job, or a job you know well. Imagine that the HR department was going to design a compensation approach for that job that was aligned with reinforcement, expectancy, and agency theories.
Respond to the following in a minimum of 175 words:
Briefly describe the job.
Describe a compensation approach for that job that aligns with all 3 theories. Consider the following questions when writing your response:
What are the potential advantages of this plan?
What are the potential negatives of this plan?
What might be difficult in administering this plan?
In order to help you answer this week’s discussion, let’s review the key definitions:
Reinforcement Theory:
Reinforcement theory is all about how our actions connect to what happens next. If something good follows what we do, we’re likely to do it again. If something bad follows, we’re less likely to do it again. This good or bad outcome can be a reward (like praise or a treat) or the removal of something unpleasant.
Expectancy Theory:
Expectancy theory is like thinking about what’s likely to happen when we do something. If we believe our efforts will lead to a good result, and we really want that result, we’re more motivated to do the task. It’s all about what we expect to come out of our actions and how much we value that outcome.
Agency Theory:
Imagine you’re doing a job for someone else. The one giving you the job (the boss or “principal”) wants you to do it in a specific way. But you might have your own ideas. Agency theory looks at how to make sure everyone’s interests are in line. This often involves clear agreements, keeping an eye on things, and offering rewards to keep everyone working towards the same goals.
