Presented By: Touheed Ahmed
Presented To: Dr Hafiz M. Ishaq
Topic: Expectancy Theory
Introduction:
1.Expectancy Theory:
People are motivated to do something when they believe that
their efforts will result in performance, and that their performance
will lead to outcomes that they value (personal goals).
Questions:
• So, why do rewards fail to motivate?
Is there a link between performance and rewards which is individual
based?
Such questions can be answered by Expectancy Theory which was
proposed by Vroom.
Vroom’s Expectancy Theory
• This theory focuses on three relationships or key elements of expectancy
theory:
Instrumentality:
Rewards – Personal
goals
Expectancy:
Performance – Reward
Valence:
Effort – Performance
Let us see, how these components are linked:
Expectancy Model of Motivation
Motivation Inputs Behavior Motivational Outputs
Needs (Internal Stimuli) Satisfaction
Perception EP* Perceived and Equitable
Abilities and Traits
PI* Reward
IN*
Incentive Motivation
Performance
(External Stimuli)
* EP: Effort Performance Productivity
* PI: Performance Incentive
* IN: Incentive - Needs
How Expectancy Theory Works:
• Your manager offers you 1 billion dollars if you memorise the company
handbook in one night.
Valency Expectation Instrumentality
Effort -
Performance Link Reward -
Performance -
Personal Goals
Reward Link
No matter how Link
much effort you put Your manager does
in, probably not There are a lot of
not look like Conclusion:
possible to wonderful things
someone who has Though you value
memorise the text you could do with
$1 billion the reward, you
in 24 hours $1 billion
will not be
E=0
V=0 I=1 motivated to do
this task.
Managerial Implications of Expectancy
Theory
• Determine the outcomes employees value.
• Identify good performance so appropriate behaviors can be rewarded.
• Make sure employees can achieve targeted performance levels.
• Link desired outcomes to targeted levels of performance.
• Make sure changes in outcomes are large enough to motivate high effort.
• Monitor the reward system for inequities.
Organizational Implications of Expectancy Theory
• Reward people for desired performance, and do not keep pay decisions secret.
• Design challenging jobs.
• Tie some rewards to group accomplishments to build teamwork and encourage
cooperation.
• Reward managers for creating, monitoring, and maintaining expectancies,
instrumentalities, and outcomes that lead to high effort and goal attainment.
• Monitor employee motivation through interviews or anonymous questionnaires.
• Accommodate individual differences by building flexibility into the motivation
program.
Limitations of the 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.
