The Expectancy theory states that
employee’s 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:
- Effort-performance relationship: What is the likelihood that the individual’s effort be recognized in his performance appraisal?
- Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards.
- Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.
- It is based on self-interest individual who want to achieve maximum satisfaction and who wants to minimize dissatisfaction.
- This theory stresses upon the expectations and perception; what is real and actual is immaterial.
- It emphasizes on rewards or pay-offs.
- It focuses on psychological extravagance where final objective of individual is to attain maximum pleasure and least pain.
- 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. It is related to other parameters also such as position, effort, responsibility, education, etc.
1) The managers can correlate the preferred
outcomes to the aimed performance levels.
2) The managers must ensure that the employees
can achieve the aimed performance levels.
3) The deserving employees must be rewarded for
their exceptional performance.
4) The reward system must be fair and just in an
organization.
5) Organizations must design interesting,
dynamic and challenging jobs.
6) The employee’s motivation level should be
continually assessed through various techniques such as questionnaire, personal
interviews, etc.
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