Chipper, the marketing director for Tee Time Golf Resort, is making plans for the annual tournament and is trying to determine the prize money for the top golfer. In past years, the resort successfully raised $25,000 through registration fees and sponsorship. This year, Chipper's general manager wants to attract some great local talent and announce the top prize at $10,000. However, Chipper thinks the resort cannot afford to announce a $10,000 top prize at the expense of losing out on a portion of the fees of less talented players who may decide not to register. He explains to the general manager that if they set the prize too high, several better-than-average golfers in the area will feel "out of their league" when the top players join in and therefore will be unmotivated to spend their money to participate. Chipper's analysis of the situation sounds reasonable to the general manager.

A. True
B. False

Expectancy theory states that the employee in an organization will be motivated to work or put in efforts if they believe that the putting in more effort will yield them better result in terms of their job performance (The benefits can be in form of an increase in salary or incentives)

An employee would be motivated to put in higher amount of effort to perform better on the job. This would occur at an even rate if he knew what the rewards were going to be.

For instance, an extra day off or increase in salary.

According to expectancy theory, the participants will ask themselves if it is possible to win the tournament given the other talent that will be competing, and, whether the experience and reward be worth the expense that they are incurring for a round of golf.