A furniture manufacturing company in the city of Capontash has decided to start operations in the underdeveloped island country of Ballowan. None of its operations staff and trainers want to move to Ballowan because the towns there are not as developed as the towns in Capontash. Therefore, the company gives the top 10 best-performing employees of the next quarter an option to not relocate to Ballowan. Which of the following theories of motivation does this scenario best illustrate?1. Reinforcement theory2. Equity theory3. McClelland's Learned Needs Theory4. Alderfer's ERG Theory

The given scenario best illustrates Reinforcement theory.

Explanation:

The theory that is used for changing the behavior through the process of controlling the behavior is called as a Reinforcement theory. This is also called a operant conditioning. Here there are two important things used to induce a behavior or eradicate a behavior. They are rewards and punishments.

In the given example, the furniture manufacturing company decides to give a reward as not to relocate to Ballowan only for those 10 employees who perform well in the next coming quarter. Thus this acts as a reward as well as punishments for those who do not perform well, as they should relocate to Ballowan. Thus, the theory of motivation used in this scenario is Reinforcement theory.