Compensation and Benefits Essay Example | Topics and Well Written Essays - 750 words - 1

Compensation and Benefits - Essay Example Second is the assessment that the prospect that an individual’s exertion will lead to the expected performance outcome (expectancy). Third, is the belief that the resulting performance can result to a reward or benefit based on the individual’s performance (instrumentality) (Noe et al., 2014). In reference to Noe et al. (2014), expectancy or performance expectancy is faith and trust that good individual efforts will lead to better work performance. It denotes the relation of "effort-performance". It is heavily weighted by an individuals personality, past experiences, emotional state, and self-confidence. Instrumentality, according to Thomsen (1980), denotes the "performance-reward" or â€Å"reward-expectancy† relation. The individual appraises the probability or likelihood, according to Noe et al. (2014), which achieving the expected level of performance will result to the realization of the performance reward. Valence, on the other hand, is the value that the employee associated with the result or outcome (reward). It denotes the significance an individual associated with the expected outcome (Thomsen, 1980). A motivational force (MF) is thus the multiplication of instrumentality with expectancy and the valence. The proposers of the theory believe that it best explains an individual’s decision-making process (Thomsen, 1980). On the other hand, critics believe that it does not consider emotional state of individuals during decision making. It can also be challenging to implement in a situation of the group environment (Noe et al., 2014). According to Noe et al. (2014), individual and group incentive plans have and strive for a similar goal. They strive to offer an employee incentive that will result to the right performance for the success of the company. For a company or firm to decide on the best incentive options, it is important to the first know their actual goals. Again