Executive Compensation Schemes in Corporate Governance Research Paper

Executive Compensation Schemes in Corporate Governance - interrogation Paper ExampleThe HR specialist has a difficult task of fixing meshs and wage differentials acceptable to an employee and their leaders. Executive remuneration has assumed considerable importance in recent years. Salaries and perks paid to highest finis-makers in organizations are skyrocketing, and this sudden spurt in managerial remuneration was the result of economic deregulation and the consequent entry of MNCs into the various regions. The expectancy model has its roots in the cognitive, concept of pioneer psychologists Kurt Lenin and Edward Tolman. However, the first to form an expectancy theory, directly aimed at work motivation, was Victor H. Vroom. Expectancy theory is based on the topic that work effort is directed towards behaviors that people believe will lead to desired outcomes. Despite its universal appeal, the expectancy model has some problems. It is important to discover what kinds of behavi or the model explains and to which situation it does not in truth well apply. Contrary to the assumption of the expectancy theory the individuals make decisions consciously there are many instances, where decisions are made with no conscious thought. It is complex, and thus its validity is difficult to test in its entirety. Limitations obscure the expectancy model is useful in as much as it serves as a heuristics decision tool to guide managers in dealing with the complexity of motivation in organizations. Motivation principles such as encouraging employees performance and matching rewards to performance can be drawn from the theory. These principles can be employ to guide managers in designing organizational rewards, work systems, Management by objectives, and goal setting.