How would you use expectancy theory to motivate them to perform at a high level?

Expectancy theory operates on the premise that employees base an individual level of effort on what is necessary to perform well and earn rewards within the workplace. If you want workers to put forth a certain level of effort, set up a reward structure with clear, defined goals and routine evaluations. Workers need to know, as much as possible, the actions necessary to reach a required level of performance. The amount of effort required should be challenging, but not impossible, if you want morale to stay high while goals are pursued.

Recruitment and Selection

The first stage in the employment relationship is recruitment and selection. Human resources recruiters and employment specialists develop a strategy to attract applicants with the qualifications, expertise and interest the organization needs. Human resources and corporate leadership hold recruiters accountable for assembling a qualified pool of applicants whenever a vacancy occurs. Therefore, recruiters who construct in-house job postings do so in a manner that generates interest in the current workforce.

This is an example of expectancy theory because promoting from within is a policy that supports employee retention efforts. Recruiters are responsible for providing a selection of candidates that are suitably qualified and likely to stay with the company. The goal is to meet the expectations of human resources and corporate leadership. Success is based on the recruiter’s ability to find well-qualified and promotable candidates from the existing employee base.

Expectancy Theory in Interview Techniques

Expectancy theory is evident during many interviews and from both sides of the desk. Interviewees study company literature and brush up on their presentation skills with the expectation that they will impress the company’s hiring manager enough that she will issue and invitation for a second interview or extend a job offer. Interviewers, on the other hand, develop a line of questions to determine how potential candidates will react to certain workplace situations. They formulate their questions based on the type of response they want to elicit from candidates, which in turn, makes the hiring decision a rational and well-informed one.

Employee Performance in Anticipation of Employer Response

Employees base their level of work, output or quality in anticipation of the employer’s response. this might include a pat on the back, a positive performance appraisal or better work assignments. For example, an information technology expert who improves the method for capturing business data generally does so with the expectation that her employer will reward her with some form of positive response. The response could be a pay bonus or elimination of her name from the list of employees to be laid off. The quality of work is relative to the level of response the employee expects as a result of the effort and time she puts into her tasks.

Extrinsic Motivation Versus Expectancy Theory

Expectancy theory may be confused with, or linked to, extrinsic motivation, because in both cases, employees engage in actions and behavior to produce a desirable outcome. Extrinsic motivation, however, is the underlying reason that an employee performs the job or adopts a type of behavior. Expectancy theory isn’t the reason the employee performs the job. Rather, it’s the basis for why an employee performs the job at a particular level.

For instance, the extrinsic motivation for coming to work and completing assigned job tasks is a regular paycheck. However, expectancy theory can explain why an employee maintains perfect attendance and performs his job and produces high quality work. The reasonable expectation of an employee who gives thought to how the employer will respond to above average performance is a positive evaluation or job promotion.

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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