EXPECTANCY

THEORY

 One of the motivation theory

Individuals have different set of goals and can be motivated id
they have certain expectations
First proposed by victor vroom
In 1964
Focus on outcomes

DEFINITION OF THEORY
The theory says that individuals have different sets
of goals and can be motivated if they believe that:
There is a positive correlation between efforts and
performance,
Favourable performance will result in a desirable
reward,
The reward will satisfy an important need,
The desire to satisfy the need is strong enough to
make the effort worthwhile.

BASED ON THREE BELIEFS

Expectancy

Instrumentality

Valence

Effort will lead to the

This performance in

The desirability of the

intended performance
Can I achieve the
desired level of task??

achieving a certain
result
What work outcomes
will be received as a
result of the
performance?

result
How highly do I value
work outcome?

EXPECTANCY
Expectancy is the belief that increased effort will lead to
increased performance i.e. if I work harder then this will
be better. This is affected by such things as:
Having the right resources available (e.g. raw materials,
time)
Having the right skills to do the job
Having the necessary support to get the job done (e.g.
supervisor support, or correct information on the job)

INSTRUMENTALITY
Instrumentality is the belief that if you perform well that a
valued outcome will be received. The degree to which a first
level outcome will lead to the second level outcome. i.e. if I do
a good job, there is something in it for me. This is affected by
such things as:
Clear understanding of the relationship between performance
and outcomes e.g. the rules of the reward 'game'
Trust in the people who will take the decisions on who gets
what outcome
Transparency of the process that decides who gets what
outcome

VALENCE
Valence is the importance that the individual places upon the
expected outcome. For the valence to be positive, the person
must prefer attaining the outcome to not attaining it. For
example, if someone is mainly motivated by money, he or
she might not value offers of additional time off.

 These three components of expectancy theory (expectancy,

instrumentality, and valence) fit together in this fashion:

Expectancy: Effort Performance (EP)

Instrumentality: Performance Outcome (PO)
Valence: V(O)

EXPECTANCY THEORY

Individu
al effort

Individual
2
performance

Organizatio
nal reward
3

1. Effort-Performance relationship =
Expectancy
2. Performance-Reward relationship =
Instrumentality
3. Rewards-Personal goals relationship =
Valence

Personal
goals

IMPLICATION OF THEORY

ADVANTAGES OF EXPECTANCY
THEORY
It is based on self-interest individual who want to achieve maximum
satisfaction and who wants to minimize dissatisfaction.
This theory stresses upon the expectations and perception; what is real and
actual is immaterial.
It emphasises on rewards or pay-offs.
It focuses on psychological extravagance where final objective of individual is
to attain maximum pleasure and least pain.

MANAGERIAL IMPLICATION OF
THEORY
The managers can correlate the preferred outcomes to the aimed performance
levels.
The managers must ensure that the employees can achieve the aimed
performance levels.
The deserving employees must be rewarded for their exceptional performance.
The reward system must be fair and just in an organization.
Organizations must design interesting, dynamic and challenging jobs.
The employees motivation level should be continually assessed through
various techniques such as questionnaire, personal interviews, etc.

LIMITATION OF EXPECTANCY
THEORY
The expectancy theory seems to be idealistic because quite a few
individuals perceive high degree correlation between performance and
rewards.
The application of this theory is limited as reward is not directly
correlated with performance in many organizations. It is related to other
parameters also such as position, effort, responsibility, education, etc.