According to the expectancy theory, the employee is likely to see the "effort-performance" relationship as weak and demotivating.
<h3>What is expectancy theory?</h3>
According to expectancy theory, people are more motivated to work hard if they believe their efforts will be noticed and rewarded.
The importance of expectancy theory are-
- When applied correctly, expectation theory can aid managers in understanding why people choose between various behavioural options.
- Managers should implement mechanisms that closely link rewards to performance to improve the relationship between effort and results.
- It is based on an individual's self-interest, who desires to maximize enjoyment and reduce dissatisfaction.
- This philosophy places a strong emphasis on perception and expectations, saying that reality is irrelevant. It places a focus on benefits or payoffs.
According to the Expectancy Value Theory (Vroom, 1964), two things affect why a person chooses to engage in a particular activity or action:
- Expectancy is the likelihood that a desired (instrumental) outcome will be attained as a result of the behaviour or activity.
- Value is the degree to which the individual appreciates the intended outcome.
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Answer:
0.1631 ; 16.31%
Explanation:
Given:
Cost of capital = 14% = 0.14
Debt to equity ratio = 60% = 0.6
Cost of debt = 9% = 0.09
Tax rate = 23% = 0.23
Cost of equity : cost of capital + debt - to - equity ratio * (1 - tax rate) * (cost of capital - cost of debt)
Cost of equity = 0.14 + 0.60 × (1 - 0.23) × (0.14 - .09)
Cost of equity :
0.14 + 0.60 * 0.77 * 0.05
0.14 + 0.0231
= 0.1631 ; 0.1631 * 100% = 16.31%
Answer:
It is more convenient to continue processing.
Explanation:
Giving the following information:
Barnes manufactures a specialty food product that can currently be sold for $22 per unit and has 20,000 units on hand. Alternatively, it can be further processed for $12,000 and converted into 12,000 units of Exceptional and 6,000 units of Premium. The selling price of Exceptional and Premium are $30 and $20, respectively.
We don't have the information regarding the costs of processing further. Therefore, we will base our analysis in sales.
Sell now= 22*20,000= $440,000
Continue processing= 12,000*30 + 6,000*20= $480,000
It is more convenient to continue processing.
If brazil gives up 3 automobiles for each ton of coffee it produces, while peru gives up 7 automobiles for each ton of coffee it produces, then Brazil should focus on producing coffee because it has a competitive edge in this area.
What does Brazil have a comparative advantage in?
- Brazil is rich in minerals, especially iron ore, but it also has oil and other basic materials. Although technically speaking they are economic rents rather than comparative advantages, they nonetheless exist and the majority of other nations do not.
- In terms of actual comparative advantage, it is the low-cost producer of a number of agricultural items, most notably sugar, where Brazil is unquestionably the global heavyweight, but also soy, cotton, coffee, and other crops, as well as beef, poultry, and other protein.
- Brazil's issue is not its producing side. In general, they are effective producers. It relates to infrastructure. Usually, the top three producers of most commodities are the US and Brazil.
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Answer:
transferred-out 135,000
Explanation:
We solve using the following identity:
beginning WIP + cost added during the period:
total cost to be accounted for.
Then this value can be either ransferred-out r remain at the ending WIP
so we construct as follows:
beginning 0
added 180,000
Total cost 180,000
ending <u> (45,000) </u>
transferred-out 135,000