ACCA · Question 18 · Syllabus D: Leadership and management
Section A
CapitalEdge, a high-stress investment bank, recently upgraded its office furniture, improved the cafeteria food, and increased base salaries by 5% to combat high turnover. However, analysts report they still feel unmotivated because their work is repetitive and lacks recognition. According to Herzberg's Two-Factor Theory, why did CapitalEdge's actions fail to increase motivation?
Answer options:
They failed to address the physiological needs at the bottom of Maslow's hierarchy.
They only improved hygiene factors, which prevent dissatisfaction but do not actively motivate.
They did not link the rewards to performance, failing Vroom's expectancy theory.
They improved motivating factors instead of hygiene factors.
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