The individuals reception of the probability that effort will lead to high performance

Learning Outcomes

• Describe the ways in which managers can use expectancy theory to motivate employees

Expectancy theory, initially put forward by Victor Vroom at the Yale School of Management, suggests that behavior is motivated by anticipated results or consequences. Vroom proposed that a person decides to behave in a certain way based on the expected result of the chosen behavior. For example, people will be willing to work harder if they think the extra effort will be rewarded.

In essence, individuals make choices based on estimates of how well the expected results of a given behavior are going to match up with or eventually lead to the desired results. This process begins in childhood and continues throughout a person’s life. Expectancy theory has three components: expectancy, instrumentality, and valence.

• Expectancy is the individual’s belief that effort will lead to the intended performance goals. Expectancy describes the person’s belief that “I can do this.” Usually, this belief is based on an individual’s past experience, self-confidence, and the perceived difficulty of the performance standard or goal. Factors associated with the individual’s expectancy perception are competence, goal difficulty, and control.
• Instrumentality is the belief that a person will receive a desired outcome if the performance expectation is met. Instrumentality reflects the person’s belief that, “If I accomplish this, I will get that.” The desired outcome may come in the form of a pay increase, promotion, recognition, or sense of accomplishment. Having clear policies in place—preferably spelled out in a contract—guarantees that the reward will be delivered if the agreed-upon performance is met. Instrumentality is low when the outcome is vague or uncertain, or if the outcome is the same for all possible levels of performance.
• Valence is the unique value an individual places on a particular outcome. Valence captures the fact that “I find this particular outcome desirable because I’m me.” Factors associated with the individual’s valence are needs, goals, preferences, values, sources of motivation, and the strength of an individual’s preference for a particular outcome. An outcome that one employee finds motivating and desirable—such as a bonus or pay raise—may not be motivating and desirable to another (who may, for example, prefer greater recognition or more flexible working hours).

Expectancy theory, when properly followed, can help managers understand how individuals are motivated to choose among various behavioral alternatives. To enhance the connection between performance and outcomes, managers should use systems that tie rewards very closely to performance. They can also use training to help employees improve their abilities and believe that added effort will, in fact, lead to better performance.

Practice Question

It’s important to understand that expectancy theory can run aground if managers interpret it too simplistically. Vroom’s theory entails more than just the assumption that people will work harder if they think the effort will be rewarded. The reward needs to be meaningful and take valence into account. Valence has a significant cultural as well as personal dimension, as illustrated by the following case.

ASMO in Japan

When Japanese motor company ASMO opened a plant in the U.S., it brought with it a large Japanese workforce but hired American managers to oversee operations. The managers, thinking to motivate their workers with a reward system, initiated a costly employee-of-the-month program that included free parking and other perks.

However, the program was a huge flop, and participation was disappointingly low. Why?

The program required employees to nominate their coworkers to be considered for the award. Japanese culture values modesty, teamwork, and conformity, and to be put forward or singled out for being special is considered inappropriate and even shameful. To be named Employee of the Month would be a very great embarrassment indeed—not at all the reward that management assumed. Especially as companies become more culturally diverse, the lesson is that managers need to get to know their employees and their needs—their unique valences—if they want to understand what makes them feel motivated, happy, and valued.

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Victor Vroom made an important contribution to the understanding of the concept of motivation and the decision processes that people use to determine how much effort they will expend on their jobs. Criticizing Herzberg’s two factors theory, he said that a person’s motivation towards an action at any time would be determined by an individual’s perception that a certain type of action would led to a specific outcome and his personal preference for this outcome.

This model is based on the belief that motivation is determined by the nature of the reward people expect to get as a result of their job performance. Because man is a rational human being he will try to maximize the perceived value of such rewards. People will be highly motivated if they are made to believe that if they behave in a particular way, they will receive a certain type of outcome according to their personal preference.

There are three variables in Vroom’s model given in the form of an equation. Since the model is a multiplier, all the three variables must have high positive value to imply motivated performance choices. If any of the variables is zero, the probability of motivated performance tends to be zero.

MOTIVATION = VALENCE x EXPECTANCY x INSTRUMENTALITY

All these three variables are explained as follows:

1. Valence

Valence means the attraction (or repulsion) of an outcome to the individual. Whenever an individual has preference for a reward valance is the strength of that preference. The valence is something subjective and varies from person to person. Valance is deemed to be positive for an individual if he prefers attaining the outcome to not attaining it.

Valence is zero, if the individual is indifferent towards the outcome and the valence will be negative if the individual prefers not attaining the outcome to attaining it. In simple words we can say that the worker must value the reward as desired and satisfactory. It is not the actual value of the reward, but the perceived value of the reward in the mind of the worker which is important. For example, a person who is more interested in getting recognition for the hard work will not have any valence for cash reward.

1. Expectancy

Expectancy is also referred to as the Effort-Performance Probability. It refers to the extent to which the person believes his efforts will lead to the first level outcome i.e., completion of the task. Expectancy is the probability that a particular action will lead to the outcome, it is the perception in the mind of the individual of the likelihood that a particular action or behaviour will lead to a certain outcome.

Since it is an association between effort and performance, its value can range between 0 and 1. If the individual feels that the probability of achieving an outcome is zero, he will not even try. On the other hand, if probability is higher, he will put more efforts to achieve the desired outcome.

1. Instrumentality (Performance-Reward Probability)

Instrumentality refers to the probabilities attached by the individual to each possible performance- outcome alternative just as the individual previously assigned probabilities to various levels of effort leading to different levels of performance (expectancy). In simple words, instrumentality refers to the belief and expectation of a person that his performance will lead to a particular desired reward.

For example, if an individual wants a promotion and feels that superior performance is very important in receiving the promotion. Superior performance is the first level outcome and the promotion is the second level outcome. Superior performance (First level outcome) will be instrumental in obtaining the desired promotion (Second level outcome). The value of instrumentality also varies between 0 and 1 as it is also the probability of achieving the desired outcome.

As the relationship suggests, (Motivation = V x E x I) motivational force will be highest when all the three factors are high and the force will be reduced when any one or more of valence, expectancy or instrumentality approaches zero. Vroom’s model can also be depicted graphically as given in the figure.

The management must recognise and determine the situation as it exists and take steps to improve up on these factors for modification of behaviour, so that highest value can be achieved individually.

Management for example, can deal with the different situations in the following way:

(i) Low Effort-Performance Expectancy

• Reasons: Lack of necessary skills & training, so that the workers do not know that their extra efforts will lead to better performance.
• Steps to be taken: Management should provide opportunities for training to improve skills in order to improve effort performance relationship.

(ii) Low Performance-Reward Instrumentality Relationship

• Reasons: Reward policy may be inconsistent and may depend upon factors other than performance which the worker may not be aware of or may not consider fair.
• Steps to be taken: Management should re-evaluate the appraisal techniques and formulate policies that strengthen this relationship as just and equitable.

(iii) Low Reward-Valence

• Reasons: The rewards may not be desirable for the workers. Some workers may find monetary rewards desirable while some others may value recognition more.
• Steps to be taken: Management must investigate the desirability of the rewards which are given on the basis of performance.

Evaluation of the Expectancy Model

Vroom’s theory has become very popular and it has provided an alternative to content theories, which according to him, were inadequate explanations of complex process of work motivation.

The plus points of this theory are:

(i) The expectancy model is highly useful in understanding organizational behaviour. It can improve the relationship between the individual and the organizational goals. This model explains how individual’s goals influence his efforts and like need-based models reveal that individual behaviour is goal oriented.

(ii) The expectancy theory is a cognitive theory, which values human dignity. Individuals are considered rational human beings who can anticipate their future on the basis of their beliefs and expectations.

(iii) This theory helps the managers in looking beyond what Maslow and Herzberg implied. According to him motivation does not mean satisfying the unsatisfied needs. The managers must make it possible for an employee to see that effort can result in appropriate need satisfying rewards. This level of expectations will improve the motivation to work.

Despite these plus points, there are some drawbacks of Vroom’s expectancy model as given below:

(i) Vroom’s theory is difficult to research and apply in practice. This is evident by the fact that there have been a very few research studies designed specifically to test Vroom’s theory.

(ii) This theory assumes man to be a rational human being who makes all the decisions consciously. But there are numerous instances where decisions are taken with no conscious thought. This is particularly true for routine jobs.

(iii) Although, it is an important theory of motivation but it is quite complex. Many managers, in actual organisational situations, do not have the time or sources to use a complex system on the job. To conclude, we can say that from the theoretical point of view, this model is a step in the right direction, but from practical point of view, it does not help the manager in solving the complex motivational problem.

What refers to the performance reward probability?

Which theory states that effort leads to performance which then might result in rewards that in turn leads to satisfaction of goals?

What is effort to performance expectancy?

Which motivation theory proposes that work effort is directed toward behaviors that people believe will lead to desired outcomes?