A manager expends extra effort because she has been told that she will get a $50,000 bonus if her team meets their quota. She also feels stress because she has been informed that she will be put on probation if she does not get her team to perform above last year's total. Which of the following does this scenario illustrate?

A) Equity theory
B) Maslow's esteem needs
C) Two-factor theory
D) Performance-to-outcome expectancy
E) The Porter-Lawler extension

C) Two-factor theory

Explanation:

Two factor theory as developed by Frederick Herzberg states that individual factors at work can cause job satisfaction while other different factors can trigger dissatisfaction and these factors are independent of each other.

This theory properly explains the situation this manager is facing. She is told she will get a bonus of $50,000 if her team meets their quota and at the same time she feels pressured because she has also been told she will be placed on probation if the quota is not met.

The factor in this case that will cause job satisfaction is the $50,000 bonus, while the factor that will cause job dissatisfaction is the probation. The two events are independent of each other, because if the manager meets the quota she gets the bonus and if she doesn't she is put on probation.

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