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Vroom's Expectancy Theory

Vroom (1964) presented the first systematic formulation of expectancy theory developed specifically for work situations. His model is based on the assumption that individuals make conscious and rational choices about their work behavior. This perspective contrasts sharply with the idea that people are inherently motivated or unmotivated, as many noncognitive models presume.
According to Vroom (1964), employees rationally evaluate various work behaviors (e.g., working overtime versus leaving work early) and then choose those that they believe will lead to the work-related rewards that they value most (e.g., promotions). Put an­other way, employees will decide to apply effort to those tasks that they find attractive and that they believe they can perform. The attractiveness of a particular task depends upon the extent to which the employee believes that its accomplishment will lead to valued outcomes (John, 1992). A useful way of viewing the model is presented below.
1     Outcomes: These are the anticipated consequences that are relevant to the individual and that are perceived to follow certain of his or her work behaviors, such as a pay raise, a sense of accomplishment, acceptance by peers, fatigue, and so on.
2     Valence: This is the extent to which the anticipated outcomes appear attractive or unat­tractive to the individual. The valence of an outcome can range from -1.0 (a highly un­desirable outcome, such as being fired) to +1.0 (a very desirable outcome, such as a promotion). Work-related outcomes, such as good pay, a good job, group support, being fired, and so forth, vary in their attractiveness from person to person. Typically, pay raises have high valences for employees. For example, a pay raise may appear very attractive (e.g., the valence is 1.0) to a particular salesperson.
3     E -> P Expectancy: This is the effort-performance (E -> P) expectancy (called simply "expectancy" in Vroom's original work) and is defined as an individual's subjective prob­ability that effort will actually lead to performance on some job or task. This degree of be­lief can vary from 0 (the individual is certain that behavior will not lead to performance) to 1.0 (the individual is sure that behavior will lead to performance). For example, a salesperson may feel fairly confident (e.g., an expectancy of 0.8) that working an extra hour per day will result in a 10% increase in his or her product sales for the quarter.
4     P -> O Expectancy: This is the performance-outcome (P -> O) expectancy (also called "instrumentality" in Vroom's work) and is defined as an individual's belief that a partic­ular level of performance in a given situation will result in a particular set of outcomes. As with the effort-performance expectancy, the performance outcome expectancy can range from 0 to 1.0, and a person may have any number of outcome expectancies regard­ing performance. For example, a salesperson may strongly believe (e.g., an expectancy of 0.9) that a 10% increase in his or her product sales for the quarter will result in a pay raise. He or she may believe that there is a slim chance (e.g., an expectancy of 0.1) that this 10% increase in performance will lead to a promotion.

According to the theory, E -> P expectancies, P -> O expectancies, and the valences of var­ious outcomes (considered by the employee) influence the person's level of motivation. Fur­ther, these variables are assumed to operate in a multiplicative fashion. Using the example above, if a pay raise appears very attractive to a salesperson (e.g., valence = 1.0), if the per­son is fairly confident that an increase in effort will lead to an increase in performance (E -> P = 0.8), and if he or she strongly believes that an increase in performance will result in a de­sired outcome (e.g., a pay raise) (P -> O = 0.9), then the individual appears to have a rela­tively high motivational force (1.0 X .8 X .9 = .72). However, if the salesperson does not believe that an increase in performance will lead to a pay raise (e.g., P -> O = 0.1), then the motivational force will not be nearly so high (1.0 X .8 X .1 = .08). With this multiplicative model, all three factors must be high for the motivational level of an individual to be high.