Expectancy Theory of Motivation

Summary

This lesson explores the expectancy theory of motivation, which explains why individuals behave in certain ways at work. Developed by Victor Vroom in 1964, the theory states that behavior is driven by the expected outcome. The key components—expectancy, instrumentality, and valence—determine motivation. The lesson emphasizes how managers can use this theory to motivate employees by linking rewards to performance, ensuring transparency, and tailoring rewards to individual needs. While effective, the model has limitations, such as oversimplification and ignoring external factors that affect performance.

Takeaways

• 📈 Expectancy theory explains why people choose certain behaviors in the workplace, often to maximize pleasure and minimize pain.
• 🎯 Expectancy theory, developed by Victor H. Vroom in 1964 and extended by Porter and Lawler in 1968, is based on making conscious choices from possible alternatives.
• 💡 The theory involves three key variables: expectancy, instrumentality, and valence, all of which must be present to motivate employees.
• 🔍 Expectancy is the belief that effort will lead to hitting performance targets, influenced by factors like past experience and perceived difficulty.
• 🔗 Instrumentality refers to the belief that achieving a target will lead to a reward, depending on factors like trust and transparency in the decision-making process.
• 🏆 Valence is the perceived value of the reward, which can be positive, negative, or neutral, depending on the employee's personal motivation.
• 📊 The formula for motivation in expectancy theory is: Motivation = Expectancy x Instrumentality x Valence. All three factors must be high for strong motivation.
• 👨‍💼 Managers can use this model to create motivated teams by linking rewards directly to performance and ensuring rewards are transparent and desirable.
• 💼 Real-world applications include setting achievable weekly targets with immediate rewards to build team trust and improve performance.
• ⚖️ The theory has limitations, such as its simplicity and lack of consideration for external factors like personal issues that may affect performance.

Q & A

What is the expectancy theory of motivation?

The expectancy theory of motivation explains why people behave in certain ways in the workplace. It states that individuals choose behaviors based on what they expect the outcomes to be. People are motivated to act when they believe the result of their actions will be beneficial to them.

Who developed the expectancy theory of motivation, and when?

The expectancy theory of motivation was developed by Victor H. Vroom in 1964. It was later extended by Porter and Lawler in 1968.

What are the three variables of expectancy theory?

The three variables of expectancy theory are expectancy, instrumentality, and valence. All three must be present to motivate employees effectively.

What does 'expectancy' mean in the context of expectancy theory?

'Expectancy' refers to the belief that if an individual works hard, they will be able to meet their targets or performance levels. This judgment is based on factors such as past experience, confidence in their ability, the difficulty of the task, and whether the target is under their control.

How does 'instrumentality' factor into motivation according to the theory?

'Instrumentality' is the assessment of how likely an individual is to receive a reward if they meet their performance targets. Factors influencing this include the clarity of the connection between performance and rewards, trust in the decision-makers, and the transparency of the reward process.

What is 'valence' in expectancy theory?

'Valence' refers to the perceived value of the reward to the individual. It can be positive if the individual is motivated by the reward, zero if they are indifferent, or negative if they want to avoid the reward.

What is the formula for motivation in expectancy theory?

The formula for motivation in expectancy theory is: Motivational Force (MF) = Expectancy × Instrumentality × Valence. This means that motivation is determined by how achievable the target is, how clear the reward is, and how much the reward is valued.

How can managers use expectancy theory to motivate their teams?

Managers can use expectancy theory by ensuring that rewards are directly linked to performance, making the reward system transparent, and offering rewards that are genuinely desired by employees. This approach helps in creating motivated, high-performing teams.

Can you give an example of using expectancy theory to improve team performance?

One example is a new manager dealing with a team that has low morale. The manager sets short-term achievable targets with immediate rewards, such as extra spending money for the weekend. This builds trust and motivates the team by linking performance to desirable rewards.

What are some disadvantages of expectancy theory?

The theory can be overly simplistic, as it doesn't account for situations where individuals act against their best interests. It also ignores external factors like personal problems that could affect performance, and it may be challenging to implement in large organizations where rewards are tied to overall company performance.

Outlines

00:00

📈 Introduction to Expectancy Theory

This paragraph introduces the expectancy theory of motivation, which explains why people behave in certain ways in the workplace. It provides an example of an employee who works hard in anticipation of promotions or pay raises, illustrating how individuals are motivated by expected outcomes. The theory, developed by Victor H. Vroom in 1964 and later extended by Porter and Lawler in 1968, suggests that people choose behaviors based on the expected result, maximizing pleasure and minimizing pain. Managers can use this theory to understand and influence employee decisions and behaviors.

05:01

⚖️ Key Variables of Expectancy Theory: Expectancy, Instrumentality, and Valence

This paragraph explains the three core variables of expectancy theory: expectancy, instrumentality, and valence. Expectancy is the belief that effort will lead to achieving targets, influenced by factors such as past experience, confidence, and target difficulty. Instrumentality refers to the belief that meeting targets will result in rewards, based on trust and the clarity of reward processes. Valence is the perceived value of the reward, which can be positive, negative, or neutral. These three factors must align for employees to be effectively motivated.

10:05

🧮 The Expectancy Theory Formula

Here, the expectancy theory formula is introduced: motivational force (MF) equals expectancy times instrumentality times valence. MF represents an individual's motivation to act. The formula implies that for employees to be motivated, they must believe that their targets are achievable, that rewards are clear, and that those rewards are valuable to them. The paragraph emphasizes how managers can use this formula to better motivate their teams by aligning these factors.

🏆 Practical Example 1: Improving Underachieving Teams

This example demonstrates how a new manager might apply expectancy theory to improve a historically underperforming team. By setting achievable short-term goals and providing immediate rewards, such as weekend spending money, the manager can increase team focus and gradually build trust. The aim is to shift the team's perception of rewards, making them feel that hard work benefits them, not just the company.

🚀 Practical Example 2: Boosting Performance of an Existing Team

This example outlines how a manager can further boost an already performing team using expectancy theory. The strategy involves customizing rewards to meet individual needs, such as offering remote work days for someone with a long commute or project leadership opportunities for ambitious employees. By linking productivity to personal goals, the manager increases motivation and performance within the team.

✔️ Pros and Cons of Expectancy Theory

This section highlights the strengths and weaknesses of expectancy theory. Advantages include its simplicity and the clear mechanism it provides for improving performance by adjusting rewards. However, the model can be overly simplistic, ignoring why people sometimes act against their best interests and external factors, like personal issues, that may impact performance. The model can also be hard to apply in large organizations where rewards are not directly tied to individual performance.

📚 Conclusion: Summing Up Expectancy Theory

The final paragraph summarizes expectancy theory as a motivational framework in the workplace. It states that employees will be motivated when they believe they can achieve their targets, understand the rewards they will receive, and value those rewards. By aligning these factors, managers can build highly motivated and high-performing teams. Examples include setting stretch targets, rewarding desirable behaviors, and tailoring rewards to individual preferences.

Keywords

💡Expectancy Theory

Expectancy Theory is a motivational framework that explains why individuals choose certain behaviors in the workplace. It suggests that people behave in ways that lead to outcomes they find desirable. In the video, this theory is used to explain how managers can create motivated employees by understanding the expectations and outcomes their team members value.

💡Expectancy

Expectancy refers to an individual's belief that their effort will lead to achieving a desired performance level. It is one of the three core components of Expectancy Theory. In the video, it is explained that factors such as past experience, confidence, and control over targets influence whether employees feel their efforts will result in success.

💡Instrumentality

Instrumentality is the belief that if an individual meets performance expectations, they will receive a reward. This component of Expectancy Theory addresses the relationship between performance and rewards. The video highlights that employees assess whether rewards are clear, whether they trust the decision-makers, and whether the process for distributing rewards is transparent.

💡Valence

Valence refers to the value an individual places on the reward they expect to receive. It can be positive, negative, or neutral depending on how desirable the reward is to the person. In the video, valence is discussed in terms of employees weighing the pros and cons of rewards, such as promotions or pay raises, and whether they find them motivating.

💡Motivational Force

Motivational Force is the overall motivation an individual has to perform a certain behavior, and it is calculated as the product of expectancy, instrumentality, and valence. The video emphasizes that the higher the motivational force, the more likely an individual is to be motivated to act. This concept is summarized in a formula used in Expectancy Theory.

💡Rewards

Rewards are outcomes that employees receive in exchange for meeting performance goals. In the video, rewards are central to motivating employees and can take various forms, such as pay raises, promotions, or extra time off. The importance of linking rewards to performance and ensuring they are valuable to individuals is a key message.

💡Performance Targets

Performance targets are the specific goals or objectives that employees are expected to meet. In the video, it is noted that employees are more motivated to achieve their targets if they believe the targets are attainable (expectancy) and that they will be rewarded for reaching them (instrumentality).

💡Trust

Trust refers to the level of confidence employees have in their managers and the reward system. The video points out that low trust can undermine motivation, as employees may doubt whether their efforts will be fairly rewarded. Trust is crucial in determining how employees perceive the fairness of the reward distribution process.

💡Behavioral Alternatives

Behavioral alternatives are the different actions or behaviors employees can choose from when deciding how to approach their work. According to the video, employees select behaviors based on their expected outcomes. Managers can use this understanding to guide employees toward productive behaviors by offering rewards that align with their preferences.

💡Personalization of Rewards

Personalization of rewards refers to tailoring incentives to meet the unique preferences and needs of individual employees. The video suggests that personalized rewards, such as flexible work arrangements or leadership opportunities, can increase motivation by making the rewards more meaningful to each employee.

Highlights

Expectancy theory explains why people behave the way they do in the workplace based on their expectations of the results of their behavior.

Victor H. Vroom developed the expectancy theory in 1964, which was later extended by Porter and Lawler in 1968.

Expectancy theory posits that behavior is chosen based on the goal of maximizing pleasure and minimizing pain.

The three key variables in the expectancy theory are expectancy, instrumentality, and valence.

Expectancy is the belief that one's effort will lead to the desired performance level or target achievement.

Instrumentality refers to the belief that achieving the performance target will lead to a specific reward.

Valence represents the perceived value or desirability of the reward to the individual, which can be positive, negative, or neutral.

The motivation formula is expressed as: Motivational Force = Expectancy x Instrumentality x Valence.

Rewards must be clearly linked to performance, and the decision-making process for rewards should be transparent.

Managers can use expectancy theory to motivate employees by understanding how they make decisions based on rewards and alternative behaviors.

An example of using expectancy theory is setting short-term achievable targets with immediate rewards to build trust and motivation in a team with low morale.

Another example is tailoring rewards to individual team members' preferences, such as offering work-from-home days or leadership opportunities to boost performance.

One advantage of the model is its simplicity in understanding and application to improve performance by adjusting rewards.

A disadvantage is that the model can be overly simplistic, not accounting for external factors like personal issues affecting performance.

Expectancy theory can help create highly motivated individuals and teams by aligning targets, rewards, and individual needs in the workplace.

Transcripts

hello and welcome to today's lesson

where we're looking at the expectancy

theory of motivation now this theory

attempts to explain why people behave

the way they do in the workplace so are

you the sort of person who shows up at

the office early works really hard and

stays late and if you are this type of

person why do you behave this way well

maybe it's because in return you expect

and want to be promoted quickly and

given pay rises now expectancy Theory

basically states that a person behaves

the way they do because they're

motivated to select that behavior ahead

of other behaviors because of what they

expect the result of that behavior to be

now as managers expectancy Theory can

help you to understand how individual

team members make decisions about

alternative behaviors they have

available to them and you can then use

this information as an input for

creating motivated employees so

expectancy theory was developed by

victor h room in 1964 and actually it

was later extended by guys called Porter

and Lora in 1968 now the theory is based

on the assumption that our behavior is

based on making a conscious choice from

a set of possible alternative behaviors

according to expectancy Theory the

behavior we choose will always be the

one that maximizes our pleasure and

minimizes our pain now as a manager this

means that one of your team members will

only choose to work hard if they

perceive the outcome of choosing this

option is the most desirable for them

now in simple terms that could mean that

they might gain something or that they

might lose something now within

expectancy Theory there are three

variables involved and the first is

expectancy and the second is

instrumentality and the third is valence

and we'll cover what these mean in a

second but all three factors must be

present to motivate employees

effectively now the terminology and the

symbols you

are a little clunky and they can be

difficult to make sense of at first but

don't despair the examples will go

through should make this fairly clear so

let's look at what each of expectancy

into the mentality and valence mean in

turn so expectancy is the belief that if

you work hard so if you put in the

effort that you will be able to hit your

targets and your targets or your

performance level that have been set for

you by your manager so you make this

judgment based on a number of factors

including you know your past experience

your confidence in your ability how

difficult you perceive the target is to

achieve and whether or not the target is

under your control

now instrumentality is your assessment

of how like you how likely you are to

receive a reward if you do hit the

targets that have been set for you now

again you make this judgment based on a

number of factors so you take into

account things like is the relationship

clear between your performance and the

reward you'll receive how much do you

trust the person who decides on the

reward how transparent is the

decision-making process around who gets

what rewards so finally we have valence

so so far we have a goal to hit and we

understand the reward we'll get if we

hit that goal so the final piece of the

motivation puzzle is valence and valence

is simply the perceived value of the

reward to you now this could be negative

if you actually want to avoid the reward

it could be zero if you're just

uninterested or unmotivated by the

reward or it could be positive if you

are motivated by the reward now when it

comes to valence an employee will have

to weigh up the pros and cons so for

example you might think do I want to be

promoted will the extra work result in

even less time at my family is it really

worth putting in a serious effort

for a whole year to receive a promotion

and a 10% pay rise

so expectancy theory can be summed up in

this formula where it's motivational

force equals expectancy times

instrumentality times valence now MF

simply means motivational force which

you can think of as being someone's

motivation to do something so the higher

MF is the higher the value of M s the

more motivated you're going to be now

this formula is simply stating what

we've already covered and that is to be

motivated you must think that your

targets are achievable you must clearly

understand any reward you might receive

and you must actually value the reward

so how can you use this model well as a

manager you can use the model to help

motivate your team expectancy theory can

help us to understand how individual

team members make decisions about

behavioral alternatives in the workplace

now the biggest takeaways from

expectancy theory are rewards must be

linked directly to performance how a

person's reward is chosen should be

transparent rewards should be deserved

and rewards should be wanted so with

that let's examine a couple of examples

of using expectancy theory in practice

so in this first example we're going to

look at a new manager and the scenario

is that you're the new manager of a

small team and that small team as a

history of underachievement so you're

looking to get to the root cause of this

under performance and start your new

team off on the right foot under your

management so in terms of actions after

speaking with individual members of your

team and then to the team as a whole you

realize that your team is suffering from

very low morale now primarily you

discover this is because they feel their

targets are unreal

stick but also because they feel that if

they do work hard to achieve something

it's the company that benefits and not

them so the team also has low trust in

management so this is a really tricky

situation to address and one that can't

be remedied overnight so you decide that

some quick wins might be a way to begin

to turn things around and start to build

your team's trust in you so to this end

you start to set targets for the team to

hit each week week after week now if the

target is hit then there's an immediate

reward for the team they're each given

some extra spending money for the

weekend for example but if the target

isn't it then they don't get the reward

so using short term rewards related to

your team's performance this helps you

to achieve a few things so firstly you

keep the team focused on their

performance and secondly you build teams

trust in you by them seeing that you

stick to your word week after week after

week after week so let's look at a

second example so this time we're trying

to boost an existing team's performance

so here the scenario is that you've been

in your position as manager of a small

team for some time and your team does

good work and it performs well but you

want to boost their performance even

further so in this scenario one approach

one action you could take would be to

improve the rewards on offer by

tailoring tailoring them to each

individual's needs so for example a

person with a long commute may

appreciate the opportunity of a day

working from home if they hit their

targets another person who is highly

ambitious may appreciate the opportunity

to lead a small project next month or

next quarter if they hit their targets

this quarter so thus each person will

see high productivity as a means to

hitting their personal goals and so

they'll be far more likely to invest

effort and determination into their job

and hitting their targets so as you can

see we can create highly motivated and

high-performing teams by tailoring

rewards to the needs of the individual

members of that team so there are a

couple of advantages and disadvantages

that are worth very quickly covering so

firstly the model is super simple to

understand and another advantage is it

gives us a simple mechanism to improve

performance by changing the rewards on

offer but it has got a few disadvantages

you should be aware of - so firstly the

model can be overly simplistic it

doesn't explain why why sometimes as

humans we act against our own best

interests secondly external factors are

completely ignored from the model so for

example someone with problems in their

personal life might underperform no

matter what the reward on offer and

finally the model can be difficult to

get up and running in larger

organizations where the reward is not

directly correlated to an individual's

performance but rather to overall

company performance

so in summary expectancy theory is a

theory of motivation in the workplace it

states that an individual within your

team will be motivated when they believe

they can hit their targets they know

they will be rewarded for hitting those

targets and they value the reward they

will receive now by motivating all team

members in this way you can create

highly motivated individuals and thus

high-performing teams now examples of

how to improve behavior and performance

include setting stretch targets with

Rewards attached rewarding desirable

behaviors and linking the reward closely

to each individual's wants and desires

so that's it from me really hope you

enjoyed this lesson and I look forward

to speaking to you again soon