Expectancy Theory in HRM

    In simple terms, the expectancy theory states that an employee will be motivated to exert a high level of effort when he/she believes that:

• The effort will lead to a good performance appraisal.

• A good appraisal will lead to organizational rewards.

• The organizational rewards will satisfy his or her personal goals.

This was developed in 1964, by Victor H. Vroom through his study of the motivations behind decision making (Johnson).

Figure 1: Expectancy theory of motivation (Channell, 2021)

Example of how this work 

    Let’s say a manager gives an employee a task to produce an advertising campaign, which would get them the bonus they wanted as a reward (Valence). 

According to Vroom’s Expectancy Theory, the employee must believe the task is achievable, for them to put the effort in the first place. If the task is doable, the employee will be keen to perform well in anticipation of the bonus (Expectancy).

The employee must also believe that the effort they put in will get them the desired outcome (Instrumentality), so the organization must deliver on the outcomes it promises.

Advantages and disadvantages of using Expectancy Theory (Channell, 2021)

Advantages:

• There is a connection between motivation and satisfaction

• The expectation of a reward increases motivation, even if the outcome differs slightly from the original reward

• The theory focuses on rewards and achieving goals

• It promotes the idea that more effort should lead to increased performance, meaning the desired outcomes are met

Disadvantages:

• It assumes that effort and performance will result in the desired reward

• The theory does not account for factors like an employee’s learning and workload capacity

• If either the task is unachievable, the reward is not delivered or the outcome isn’t valuable, that is enough for employees to lose motivation

Challenge from the company perspective 

• Budgetary constraints in your organization and be realistic with potential reward types. If monetary rewards are not going to be possible, find suitable alternatives. 

• The offer of increased accountability/promotions as a reward might be a problem with workers who know that higher positions mean more hours and weekend work for example – so make sure individuals are aware of the implications of possible rewards so their expectations are not mismanaged! 

• Never speak of work without linking it obviously and immediately with the rewards involved. 

Conclusion 

    While Vroom’s Expectancy Theory allows both the employer and employee to meet their objectives by focusing on a reward, it shouldn’t be the only theory you lean on. You must also pay attention to other factors such as focusing on other aspects such as the employee’s needs, job satisfaction, and equity in the workplace.

References

1. CHANNELL, M. 2021. Vroom’s Expectancy Theory: How to Motivate Staff and Increase Performance [Online]. TSW Training Blog. Available: https://www.tsw.co.uk/blog/leadership-and-management/vrooms-expectancy-theory/#:~:text=For%20example%2C%20say%20a%20manager,put%20the%20effort%20into%20it. [Accessed 03/31/2022 2022].

   
   
2. JOHNSON, W. How to Motivate People Using the Expectancy & Contingency Theory [Online]. small business chron: CHRON. Available: https://smallbusiness.chron.com/motivate-people-using-expectancy-contingency-theory-38189.html [Accessed 4/1/2022 2022].