The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. Vroom stresses and focuses on outcomes, and not on needs unlike Maslow and Herzberg. The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual.
The Expectancy theory states that employees motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expected and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job.
Instrumentality is the faith that if you perform well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships:
Vroom was of view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employees motivation level which in turn depends on three factors of expectancy, valence and instrumentality.
|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.|
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