Expectancy Theory (Victor H.

Vroom: 1969s)

The key point of this theory is that an individual’s behaviour is not formed on objective
reality but on the subjective perception of that reality. This perception is based on the
relationship of three things: effort, performance and rewards. Vroom realized that an
employee's performance is based on individuals’ factors such as personality, skills, knowledge,
experience and abilities.

The theory suggests that although individuals may have different sets of goals, they can be
motivated if they believe that:

 There is a positive correlation between efforts and performance,

 The reward will satisfy an important need,

 The desire to satisfy the need is strong enough to make the effort worthwhile.

Vroom concentrated on factors that can be involved in stimulating the individual to put in effort
into something as the basis of motivation. He concluded that there are three factors each based
on the individual personal perception of the situation. These are:

Expectancy

This refers to the extent to which an individual perceives or believes that a particular act will
produce a particular outcome. Employees have different expectations and levels of confidence
about what they are capable of doing. Management must discover what resources, training, or
supervision employees need.

Instrumentality

This refers to the extent to which an individual perceives or believes that effective
performance will lead to desired rewards/outcome. The perception of employees as to
whether they will actually get what they desire even if it has been promised by a manager.
Management must ensure that promises of rewards are fulfilled and that employees are aware
of that.

Valence

This is the strength of the belief that attractive rewards are potentially available. Valence
refers to the emotional orientations people hold with respect to outcomes [rewards]. The
depth of the want of an employee for extrinsic [money, promotion, time-off, benefits] or
intrinsic [satisfaction] rewards. Management must discover what employees’ value.
 The diagram below is a basic summary of the of Vroom’s Theory

Mo
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Valence: Roleperception
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According to vroom the 3 factors expectancy, instrumentality and valence combine to create a
driving force which motivates an individual to put in effort into a particular activity.

Force = Expectancy x Valence (encompassing Instrumentality) or F =E X V

It is important to note that Vroom differentiated valence from value. He defined valence as the
anticipated satisfaction the individual hopes to be obtained from an outcome or reward and
defined value as actual satisfaction obtained by an individual.

Vroom suggests that an employee's beliefs about Expectancy, Instrumentality, and Valence
interact psychologically to create a motivational force such that the employee acts in ways that
bring pleasure and avoid pain.

Another important thing to note is that Effort on is own is not enough. It may not always lead to
effective performance other things may come into play. For instance the prospect of promotion
could be seen by a new recruit as an attractive prospect (valence) but if attainment is based on
seniority or length of service then the expectancy of gaining such a reward is vey low. In such a
situation performance does not lead to expected reward. Effort may also not lead to effective
performance if the individual in question does not have adequate knowledge and skills or if his
perception of his roles does not equate with that of his supervisor.

There are two categories of rewards; extrinsic rewards and intrinsic rewards

Intrinsic rewards; are those rewards gained from fulfilling higher level needs such as self
esteem and personal growth. The individual exercises a degree of control of such rewards.

Extrinsic rewards are provided by the organization and the individual usually has little control
over them they are less likely to come up to the individual’s expectations. For example pay,
promotion, working conditions policies etc.

Contributions to the study of Management today

 It takes a comprehensive view of the motivational process.