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Expectancy Theory

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15 views2 pages

Expectancy Theory

Uploaded by

njsmajun
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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This sheet is a handout material from Udemy course:

Organizational Behaviour
All rights reserved (Robert Barcik, [email protected]).

Expectancy Theory
As we continue our exploration of motivational theories, we turn our attention to a model
that considers motivation from a cognitive perspective: Victor Vroom's Expectancy Theory.
Unlike other theories which focus on needs or equity, Expectancy Theory posits that
motivation is a product of a rational calculation. Individuals decide to engage in behaviors
based on the outcomes they expect as a result of those behaviors.

Expectancy Theory is grounded in the idea that people are motivated to act in ways that
they believe will lead to desired outcomes. The diagram you can see on the slide illustrates
the flow of these components, starting from individual effort and leading to individual
rewards through a series of steps.

Now let's talk about three critical components of Expectancy Theory which are expectancy,
instrumentality, and valence.

We begin with expectancy. This is the belief that one's effort will result in the attainment
of desired performance goals. It's akin to the question, "If I give my maximum effort, will it
be recognized in my performance appraisal?" This belief is shaped by past experiences,
self-confidence, and the perceived difficulty of the goal. For example, if an employee has
consistently seen their extra efforts lead to better sales figures, their expectancy increases
and future efforts will have similar results.

Next is instrumentality, the connection between performance and outcomes. It addresses


the question, "If I achieve a certain level of performance, will it lead to the organizational
rewards I've been promised?" This is where trust in the company's reward system comes
into play. If employees see that performance appraisals are fair and that high performance
leads to rewards, the instrumentality is strong. Conversely, if they perceive the process as
arbitrary or biased, instrumentality weakens.
The final component is valence, which pertains to the value individuals attach to the
rewards. It answers the question, "Is the reward attractive to me?" Valence considers
whether the rewards meet the personal goals and needs of the individual. For instance, a
bonus might have high valence for an employee saving for a home, but less for one who
values time off over extra money.

For motivation to be high according to Expectancy Theory, all three


components—expectancy, instrumentality, and valence—must be strong. If any of these
factors are weak or non-existent, motivation will decrease. An employee might believe
that no matter how hard they work (which is their expectancy), they won't get a good
appraisal (that's their instrumentality), or they might feel that the rewards offered don't
resonate with what they value (or their valence).

In practical terms, Expectancy Theory implies that managers must create an environment
where employees feel their effort can and will lead to good performance, that good
performance will be recognized, and that the recognition will lead to meaningful rewards.
Managers should ensure that they communicate performance criteria clearly, provide
regular and transparent feedback, establish fair reward systems, and tailor rewards to meet
the diverse needs and desires of their employees.

For example, in applying this theory, a manager might sit down with employees to set clear,
attainable performance goals, making sure they understand how these goals tie to
performance evaluations and subsequent rewards. They might also personalize rewards,
offering choices that reflect the diverse preferences of their team, such as choosing
between a bonus or extra vacation days.

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