Expectancy Theory
Concept:
➦ In the present situation, expectancy theory is a widely accepted motivation theory because it focuses on the outcome.
➦ The theory states that the intensity of a tendency to perform is dependent on the intensity of expectation that performance will be followed by the definite outcome of an individual.
➦ It means that the expectancy theory of motivation focuses on the willingness of an individual to act in a certain way depends on the fulfillment of his expectation followed by the outcome.
➦ People are motivated when they know how to earn rewards, expect they will be able to earn rewards, and expect they will be worthwhile rewards.
➦ The expectation theory states that incentives will be high when people know what is required of them to earn rewards. In 1964, Vroom (1964) formulated the valency-instrumentality-expectancy (VIE) theory.
➦ The term value stands for value, instrumentality means a belief that if we do one thing it will lead to another, and expectancy means the probability of success.
➦ While expectations may be reinforced by past experiences (reinforcement), individuals are often faced with new situations – a change in job, payment system, or working conditions imposed by management – where past experiences are inadequate indicators of implications.
➦ Motivation is diminished under these circumstances.
➦ It says that employee will be motivated and devote a high level of effort when he believes that effort will lead to a good performance appraisal and appraisal will provide a good reward.
➦ The rewards may involve bonus, increase in salary, promotion to higher-level, etc. reward and incentives provided by the manager should satisfy employee’s personal goals.
➦ The basic element of this theory is that motivation depends on how much an employee wants something and how likely he thinks he will get it. According to this theory:
Motivation= Expectancy * Valence (Goals)
Focus of Expectancy Theory
➦ This theory focuses on three relationships which are as follows:
1. Effort- Performance Relationship ( E-P )
➦ It refers to a person’s perception of the probability that effort will lead to performance. Expectancy is defined as a probability rate range between 0-1.
➦ When there is a possibility of certainty of accomplishment of assigned task then E-P will be 1.
➦ Similarly, when there is no certainty on the accomplishment of the assigned task then E-P will be 0.
2. Performance-Reward relationship (P-R )
➦ It is the degree to which employees believe that performing at a particular level will lead to the attainment of desired outcomes or rewards.
➦ If a person perceives there is an absolute certainty that high performance will lead to a pay raise then P-R will be close to 1.
➦ Similarly, if a person perceives that there is absolutely uncertainty that high performance will lead to a pay raise then P-R will be 0.
3. Reward-Personal goal Relationship (R-G )
➦ It is the degree to which organizational rewards satisfy an individual’s personal goal. It shows the attractiveness of those potential rewards for the individuals.
➦ When an individual perceives that outcome leads to a high level of satisfaction then he will be motivated to work.
➦ It is anticipated satisfaction or dissatisfaction that an individual feels toward an outcome. It ranges from -1 to +1.
➦ Therefore, the theory is helpful in understanding the relationship between individual effort and performance achieved, and between performance and reward provided, and again between reward provided and personal goal satisfaction.
➦ The study of the relationship between these elements helps to know employee level of motivation.
Expectancy Value Theory
➦ Expectancy Value Theory proposed by Vroom in the year 1964 postulates that motivation for a given behavior or action is determined by two factors:
➦ (i) expectancy, ie, how probable it is that a wanted (instrumental) outcome is achieved through the behavior or action;
➦ and (ii) value, ie, how much the individual values the desired outcome.
➦ It suggests that people are most motivated when they believe they can succeed and when the outcome is personally meaningful.
➦ This theory provides valuable insights into human motivation across different domains, from academics to career choices.
Advantages of the Expectancy Theory
➨ Individuals look for maximum satisfaction and minimize dissatisfaction based on self-interest.
➨ Expectations and perception play an important role in this theory; what is real and what is actual is immaterial.
➨ Reward-oriented theories emphasize payoffs.
➨ The goal of psychological extravagance is to achieve maximum pleasure with the least amount of pain for the individual.
➨ Managers are encouraged to design an environment that encourages positive behavior among employees. This can be accomplished by communicating with them effectively and creatively.
➨ Cognitive psychology helps managers understand motivation as a mental process.
➨ Because it assumes that employees are capable and rationally thinking individuals, this theory helps managers respect their employees’ dignity. They act accordingly according to their beliefs, perceptions, and probabilities.
➨ Managers are encouraged to understand employees’ preferred outcomes and ensure that those outcomes are available.
Limitations of the Expectancy Theory
➨ There are many individuals who perceive a high degree of correlation between performance and rewards, making the expectancy theory seem idealistic.
➨ In many organizations, rewards do not directly correlate with performance, limiting the application of this theory. Other parameters also play a role, such as position, effort, responsibility, and education.
➨ The use of this theory is limited, according to the argument. Due to the fact that it tends to be valid only in situations where the effort-to-performance and performance-to-outcome linkages are clearly understood by the employees.
➨ In many organizations, employees are rewarded based on their seniority, academic qualifications, etc. rather than on their actual performance. The theory tends to be idealistic in such a situation and has no practical application.
➨ They cannot be used to measure valence, expectancy, and instrumentality in the real world of work.
➨ Since these factors may complicate the process of predicting motivation, this theory ignores many aspects of motivation.
➨ Among these factors are long-term rewards, past favors, sense of loyalty, and fear of losing a job.
➨ Although this theory has emerged as an important one, it hasn’t been fully tested. In order to build broad-based evidence in support of this theory, further testing is required.
Implications of the Expectancy Theory
➨ Management can relate desired outcomes to aimed performance levels.
➨ Employees must be able to reach the aimed performance levels.
➨ The most deserving employees should be rewarded for their exceptional performance.
➨ Organizations should have a just and equitable reward system.
➨ Employers need to design challenging, interesting jobs.
➨ Various techniques such as questionnaires, interviews, etc. should be used to continuously evaluate an employee’s motivation level.
References
- Expectancy Theory of Motivation. (n.d.). https://managementstudyguide.com/expectancy-theory-motivation.htm
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Kurt, S. (2023, November 21). Expectancy-value theory. Education Library. https://educationlibrary.org/expectancy-value-theory/
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I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,
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