EXPECTANCY THEORY: ORIGIN AND MODERN MANAGEMENT PRACTICES
HISTORICAL CONTEXT
When we look back in time, the effectiveness of individuals' work performance was linked to
the skills required to do the job. At that time, it was the psychologists whose attention was
caught by the role of motivation in job performance. In 1930, the Hawthorne Experiment was
carried out, and a decade later, Kurt Lewin and his colleagues carried out experiments for their
study in Harwood Manufacturing Company.
In 1950, Victor Vroom inspired by the writings of Kurt Lewin, combined his concept that was
readily applicable in research and practice regarding the role of ‘motivation” in the
effectiveness of job performance. His concepts included force, valence, and psychological
distance. Vroom replaced the concept of psychological distance with ‘expectancy’, used by the
great theorists of the time including Edward Tolman, R. Duncan Luce, Howard Raiffa, and John
Atkinson. In addition, Vroom included the term ‘instrumentality’ that connected work to
outcomes.
Expectancy theory dates back to 1964, created by Victor Vroom as a graduate of psychology in
his book “Work and Motivation”. Vroom’s study emphasized how individuals behave in a
workplace where they are motivated to enhance their performance.
CONCEPT
Expectancy theory highlights how intrinsic and extrinsic motivation in individuals leads to
effective job performance in organizations. The theory states that effort put in by individuals
depends on the rewards they are likely to earn. The theory introduces three variables, valence
(intrinsic motivation), instrumentality (extrinsic motivation), and expectancy.
Making individuals believe that they can achieve outcomes if they perform well
(expectancy)– putting effort into their work will lead to enhanced performance.
Effort - Performance
through ‘job design’
Job is structured in a way that the task has clear roles attained through
training, and providing adequate resources.
Linking rewards to the level of performance (instrumentality) – if individuals perform
well a particular reward will follow.
Performance - Rewards
through ‘goal setting’
Set goals that link performance with tangible rewards
Boosting inner satisfaction of the individuals to motivate them to perform well (valence)
– value individuals put on the outcome that is highly subjective, managers should make
sure individual’s values are aligned to rewards.
Values – Rewards
through ‘connecting work to values’
Set goals that link performance with intangible rewards aligned with the
individual’s values and goals
MODERN MANAGEMENT PRACTICES
The relevancy of the Expectancy Theory can be seen today, where management motivates the
employees through a belief system that their effort shall lead to good performances that will
result in rewards and therefore fulfill their individual goals.
Below are a few management practices that apply the Expectancy Theory in the workplace:
Performance-based incentives (commission, bonus, promotion) – ‘instrumentality’
Employee-Centric Culture (flexible work hours, work-from-home, career growth
opportunities, wellness benefits, recognitions) – ‘valence’
Skill Development (training, clear roles, supportive management) – ‘expectancy’
REAL-LIFE EXAMPLE
Application of Expectancy Theory at Starbucks
1. Expectancy (Effort → Performance)
Starbucks provides extensive training programs for baristas,
This helps the employees receive clear job expectations, supportive management, and
feedback to that will make them believe that their efforts will lead to good
performance.
2. Instrumentality (Performance → Rewards)
Starbucks links employee performance to tangible rewards, such as:
Bonuses and incentives for meeting sales or customer service
Opportunities for promotion to shift supervisor and manager
Recognition programs (e.g., "Partner of the Quarter") for outstanding
employees.
3. Valence (Value of Rewards)
Starbucks ensures that rewards align with what employees value, such as:
Competitive salaries and stock options (Starbucks refers to employees as
"partners" and offers them shares in the company)
Education benefits, including tuition reimbursement for employees pursuing
college degrees
Flexible work schedules, health benefits as additional perks
Outcome
By applying expectancy theory, Starbucks maintains high employee satisfaction and low
turnover rates compared to industry standards. Employees feel motivated because they see a
clear link between their effort, performance, and meaningful rewards. This motivation
translates into better customer service, increased sales, and overall business success.
CONCLUSION
Lack of trust in leadership, bias or perceived inequality, and unrealistic or unattainable
expectations might create a barrier to carrying out the Expectancy Theory in modern times
where the environment is both diverse and dynamic. Nevertheless, this theory is being used as
a powerful tool to motivate employees and boost the performance of organizations.
