Expectancy Theory

Expectancy Theory postulates that an individual's motivation can be derived through identifying an appropriate expectation.

Learning Objective

Understand the three relationships and four variables that result in Expectancy Theory

Key Points

Victor Vroom at the Yale School of Management put forward a concept called Expectancy Theory, which suggests behavior is motivated by an anticipated outcome.
There are three interactions: expectancy (effort → performance), instrumentality (performance → outcome), and valence (outcome → reward).
Expectancy allows an individual to move from effort to performance, and is predicated upon the belief that one can accomplish a given goal.
Instrumentality is confidence that a given performance will result in the desired reward. This is best enabled through an established relationship or contract that guarantees the reward.
Valence is the degree to which this reward matters to the individual being motivated, which could be pictured as a spectrum. The higher the valence, the higher the motivation.

Terms

self-efficacy
One's belief that he or she can accomplish a given objective.
valence
A value assigned to an object, behavior, or other consequence that has relative scale.

Full Text

Expectancy Theory, initially put forward by Victor Vroom at the Yale School of Management, suggests that behavior is motivated by the anticipated result or consequences expected. The concept of choice is central to this theory, as there are a variety of behaviors that an individual could potentially choose. To anticipate what choice will be made , identify what consequences would be expected as an outcome, and select the motivation which will result in the optimal outcome.

The Building Blocks

Expectancy Theory boils down to a few simple variables, which in conjunction produce the projected outcome based upon the motivational inputs. This is described as three relationships using four inputs:

Expectancy: effort → performance (E→P)
Instrumentality: performance → outcome (P→O)
Valence: V(R) outcome → reward

What you'll notice is a full equation, where each variable leads to the next:

Effort (E) → Performance (P) → Outcome (O) → Reward (R)

Expectancy Theory

This illustration visually expresses the three relationships that ultimately equate to a given motivation.

This illustration visually expresses the three relationships which ultimately equate to a given motivation.

Expectancy

Moving from effort to performance requires three things. First is self-efficacy, or the belief that one can accomplish the goal. Second is the appropriate goal difficulty. Third is the perception of control, the concept that accomplishing the objectives is within one's influence.

Instrumentality

To move from performance to outcome, the individual must trust that the delivery of a given output will result in the desired reward. An example of this could be a commission on a sale. Established policies in place, preferably via a contract, will guarantee the reward will be delivered based upon an agreed upon performance.

Valence

This is simply the valuation of a given reward from the individual being motivated. This can be intrinsically positive or negative, which is to say the pursuit of OR avoidance of an outcome. This is why it is called a valence. Based upon the values, desires, and objectives of an individual, the individual will have a certain valued reaction to the reward. If one reward has a more extreme valence than another, it will consequently result in a higher level of motivation.

Expectancy Theory combines these three concepts into the conclusion that these three interactions will ultimately create a desired motivational response.

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