Expectancy Theory

Expectancy Theory

A theory that someone's behavior determines if they will have maximum pleasure and minimal pain. People are motivated to behave a certain way based on what they expect will happen as a result of their behavior. Created in 1964 by Victor Vroom, a professor at Yale University. It is a management theory based on motivation and used in businesses.

Expectancy

A principle of the Expectancy theory that is related to EFFORT. In business, employees can have different expectations about what they are capable of. Expectancy is the belief that one's effort (E) will result in a desired performance (P) or goals.

Valence

A principle of the Expectancy theory that is related to OUTCOME. It is the value an individual places on the reward they receive from their effort and performance. In business, the reward needs to be something the employee will value.

Instrumentality

A principle of the Expectancy theory that is related to PERFORMANCE. Instrumentality is the belief that a person will receive a reward if their performance meets expectations. This reward may present itself in the form of a pay increase, promotion, recognition or sense of accomplishment. Instrumentality is low when the reward is the same for all performances given.

Effort - Performance - Outcome

The 3 elements of the theory. Individuals can be motivated toward a goal if they believe that there is a positive correlation between their EFFORT, PERFORMANCE & OUTCOME. Their EFFORT will determine their PERFORMANCE. Their PERFORMANCE will determine the OUTCOME. The OUTCOME should be a desirable reward.