PHR Human Resources

Answer: B - True.

Key Takeaway: - Expectancy theory states that employees who are motivated by incentives will remain motivated and productive so long as the rewards meet their expectations. While this is simple, expectancy theory starts to become complex. What if a person is generally over-incentivized? Well, it is much harder to motivate someone who is overpaid with what might seem fair to someone who is reasonably paid. That is why overpaying a long-term employee can be damaging to long-term productivity.