Expectancy theory explains how people choose actions to achieve desired outcomes. It focuses on valence, instrumentality, and expectancy, and recognizes individuality. It was proposed by Victor Vroom and differs from Maslow’s hierarchy of needs and Herzberg’s two-factor theory. Employers can motivate employees by ensuring rewards are valued, certain, and achievable.
Expectancy theory is a behavioral and motivational theory that explains how people choose their actions to achieve an outcome they expect. A person is particularly motivated to act or not to act a certain way if the outcome is highly desirable. This theory is usually applied in a work environment, where employees behave in a certain way based on the reward or incentives that employers can give in return.
The theory was first proposed in 1964 by Professor Victor Vroom of the Yale School of Management. In its contextual period, expectancy theory may have been a revolutionary idea, as it focuses on desired outcomes instead of needs which are emphasized by Maslow’s “hierarchy of needs” and Herzberg’s “two factor theory”, which preceded Vroom’s proposal. The theory also recognizes that the individuality and uniqueness of each person contributes to what outcomes are desired, unlike Maslow, who assumed that his proposed human “needs” are universal and inherent in all people.
There are three elements involved in expectancy theory: valence, instrumentality, and expectancy, all of which play different parts in motivating a person to behave in a certain way. Valence refers to the degree to which the individual puts “value (v)” into the reward (r)”, giving it a formula of V(R). This, in part, will help the individual decide how he performs to get that award. For example, a person who places a high value on getting a promotion will be more motivated to get involved in many projects and work longer hours than usual.
Instrumentality is the element that belongs to the individual’s certainty that he will be given his reward if he does the behavior or performance that is expected of him. In expectancy theory, Vroom gives this element the formula of “Performance → Outcome”. Simply put, a person is more likely to perform expected tasks and responsibilities if there is more certainty that they will ultimately get their reward. To motivate their employees to perform well, employers can talk to them privately and tell them directly that a promotion is at hand if they perform specific tasks. More importantly, the employer must keep its word; this way, an employee has a clear perspective of what he must do to receive his reward.
In expectancy theory, expectancy is the factor that relates to the individual’s belief that his effort will produce the performance or task he is expected to perform, giving it a formula of “E → P”. If a person believes he has the ability and ability to perform a task, then he is more motivated to perform that task to achieve his goal; for example, if a person is tasked with selling five products to get a bonus. If he is confident in his skills as a communicator and salesman, he is more likely to see those five products, thus getting his bonus as a reward.
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