EXPECTANCY THEORY – VICTOR VROOM (1964)

Expectancy theory was put forth by Victor Vroom in the 1960s and says a person's
expectations directly relate to their level of motivation. Many people believe that if
they put in a specific amount of effort it will result in a specific reward. If a person's
action results in their expected reward they'll be motivated to take the same action
again. If, however, their actions don't result in their expected reward they'll become
demotivated.
Vroom felt motivation results from people's conscious choices about how much
effort to expend based on their anticipations and choices. He wanted to know what
causes people to have other motivation levels in work sets. Vroom's theory was
affected by earlier work on Expectancy Theory created by Lewin, Tolman, and
Rotter. Yet, Vroom extended this work by using it precisely to Motivation in the
firm's contexts. He sought to know how the design of work and reward systems
affects employee motivation.
Expectancy Theory shifted towards a more "cognitive" view of motivation focused
on people's perceptions, beliefs, and choices. It stressed the roles of the work
climate, firm systems, and reward structures in affecting employee motivation. As
per this theory, motivation is determined by three key factors: Expectancy,
Instrumentality, and Valence.
Expectancy is the belief that putting in the effort will result in improved
performance. If an individual believes that their efforts will not lead to improved
performance, they are unlikely to be motivated to try. Instrumentality is the belief
that improved performance will lead to desired outcomes or rewards. If an
individual believes that their improved performance will not lead to desirable
outcomes, they are unlikely to be motivated to try. And valence is the value an
individual places on the outcomes or rewards they will receive. If an individual
does not value the outcomes or rewards, they are unlikely to be motivated to try.
Motivation (Force)= Valence x Expectancy x Instrumentality
Thus, the expectancy theory concentrates on the following three relationships:
Effort-performance relationship: What is the likelihood that the individual’s effort
be recognized in his performance appraisal?
Performance-reward relationship: It talks about the extent to which the employee
believes that getting a good performance appraisal leads to organizational rewards.
Rewards-personal goals relationship: It is all about the attractiveness or appeal of
the potential reward to the individual.
The Expectancy Theory of Motivation has the following advantages:
1) Flexibility: This means that the theory can be applied to a wide range of
settings and contexts. It can be used to explain motivation in work, education,
sports, and other areas of life giving out some positive outcomes.
2) Personalization: The theory recognizes that individuals have unique beliefs,
values, and preferences that influence their motivation. It allows for a
personalized approach to motivating individuals, based on their specific
expectations, instrumentalities, and valences.
3) Clarity: This theory provides a clear framework for understanding the factors
that influence motivation. It helps managers and leaders to identify and
address specific obstacles to motivation, such as a lack of belief in the
connection between effort and performance or a lack of valued rewards that
would be provided.
4) Practicality: The theory offers practical strategies for improving motivation,
such as providing clear goals, feedback, and rewards that are valued by
individuals.
5) Focuses on individual motivation: The theory recognizes that motivation is
influenced by individual beliefs, values, and preferences. It encourages
managers to focus on understanding and addressing the specific needs and
motivations of each employee.
The Expectancy Theory of Motivation, like any theory, has some limitations that
need to be considered. These limitations include:
1) Simplistic view of motivation: The theory takes a relatively simplistic view of
motivation, focusing on the relationship between effort, performance, and
rewards. This does not account for other factors that may influence
motivation, such as personality, emotions, or social context.
2) Assumes rational decision-making: The theory assumes that individuals are
rational decision-makers who weigh the costs and benefits of their actions
 before making a decision. However, individuals may not always make
decisions in a completely rational manner.
3) Limited scope of rewards: The theory assumes that rewards are the primary
motivator for individuals. However, research suggests that other factors, such
as job satisfaction, autonomy, and social connection, can also influence
motivation.
4) Ignores the role of feedback: The theory does not fully account for the role
of feedback in motivation. Feedback can be a powerful motivator, but it is not
explicitly addressed in the theory.
5) Ignores the role of emotions: The theory assumes that individuals are
motivated solely by the desire to receive rewards, and does not fully account
for the role of emotions in motivation. Emotions such as fear, anxiety, or
excitement can influence an individual’s motivation but are not addressed by
the theory.
6) Individualistic focus: The theory has a strong focus on individual motivation
and may not fully account for the influence of group dynamics or social
context on motivation. In some cases, motivation may be influenced more by
social factors such as peer pressure or group norms than by individual beliefs
and values.
IMPLICATIONS
The implications of the expectancy theory for managers are multifaceted and
crucial for enhancing employee motivation. Firstly, managers should correlate
preferred outcomes with targeted performance levels, ensuring that employees
see a clear connection between their efforts and the rewards they desire. It is
essential for managers to ensure that employees have the necessary resources and
support to achieve these performance levels. Furthermore, it is important that
employees who demonstrate exceptional performance are appropriately
rewarded, fostering a culture of recognition and merit. The reward system within
the organization must be fair and just, ensuring that all employees perceive the
distribution of rewards as equitable. To sustain high levels of motivation,
organizations should design jobs that are interesting, dynamic, and challenging,
thereby engaging employees and preventing monotony. Additionally, managers
should continuously assess the motivation levels of employees through various
techniques such as questionnaires and personal interviews, allowing for timely
interventions and support. By addressing these factors, managers can effectively
leverage expectancy theory to enhance motivation and performance within their
teams.
In conclusion, the expectancy theory of motivation offers a comprehensive
framework for understanding how individuals make decisions regarding their
behavior in organizational settings. By emphasizing the relationships between
effort, performance, and outcomes, the theory underscores the importance of
aligning organizational rewards with employees' personal goals and expectations.
Employers can enhance motivation by ensuring that employees believe their efforts
will lead to desirable performance and that this performance will be rewarded with
valued outcomes. This alignment not only fosters a motivated workforce but also
drives higher levels of productivity and job satisfaction, ultimately contributing to
the overall success of the organization. Therefore, the practical application of
expectancy theory principles can significantly enhance both individual and
organizational performance.

EQUITY THEORY
Equity theory, first introduced by Jane Stacy Adams in 1963, posits that individuals
assess their job inputs and outcomes in relation to those of others and take action
to address any perceived inequalities. When individuals perceive a high level of
equity, their motivation is enhanced. Conversely, if they perceive an environment
as unfair, their motivation diminishes.
At its essence, Adams' theory asserts that individuals seek a balanced relationship
between their inputs and outputs. This means they desire rewards that fairly
reflect their contributions at work. Likewise, they expect others to receive similar
rewards for equivalent levels of contribution. In simple terms, Adams' equity theory
suggests that people strive for fair compensation for their efforts across their work
community. When this balance is maintained, individuals are likely to stay
motivated; when it is disrupted, their motivation may decline.
Contributions (inputs or costs)
The further you run, the more rewarding the achievement feels. Inputs are the
various things an individual does to assist an organization in reaching its goals,
encompassing much more than just the time spent working. Inputs include factors
such as time, education, prior experience, effort, loyalty, hard work, adaptability,
resilience, flexibility, determination, enthusiasm, tolerance, support of others,
trust, and the willingness to follow leaders. These inputs cover both physical labor
and emotional labor. Essentially, any effort, whether physical or psychological, that
an individual contributes to help an organization achieve its objectives is considered
a contribution.
#Contributions
Skills: Employees utilize their skills to perform their duties efficiently and
professionally.
Effort: Employees put in daily effort to come to work and complete their tasks.
Without effort, no work would be accomplished, making it the most fundamental
input.
Loyalty: This encompasses all aspects of personal sacrifice. A loyal employee
remains committed to the organization, even when offered opportunities
elsewhere.
Knowledge: Employees acquire valuable knowledge through education, training,
and continuous interest in their field, allowing them to grow and evolve.
Experience: Knowledge is best utilized when coupled with experience, making
experience a highly valuable and distinctive input. It is also irreplaceable.
Social Skills: Employees contribute by participating in company activities,
celebrating milestones together, and fostering a comfortable working environment
through social interactions.
Benefits (outputs or rewards)
Benefits are what an individual receives in return for aiding an organization in
reaching its goals. These encompass more than just salary or financial
compensation for time worked. Benefits include salary, job security, structure and
routine, recognition, responsibility, a sense of community, praise, stimulating work,
education and development, pride, opportunities for advancement, and a sense of
purpose. Essentially, anything an employee receives that positively impacts their
life is considered a benefit.
## Outputs
Salary: This is considered the most important output for employees. In exchange
for their contributions, they receive a set amount of money each month from the
company.
Bonus: A bonus is additional money paid on top of a salary and is considered a
financial reward. Bonuses can be based on commissions or goals, with higher
bonuses motivating employees to work harder.
Recognition: Employees seek intrinsic motivation, valuing the recognition of their
efforts. When a co-worker takes credit for an employee’s work, it creates a
significant imbalance according to Equity Theory. Managers must actively recognize
and reward employees' contributions.
Responsibility: Having responsibility gives employees a sense of belonging and
control over their work. This instills confidence and allows them to organize and
execute their duties as they see fit.
Challenges: Employees appreciate engaging and meaningful challenges at work,
which enhances their satisfaction and commitment to the organization.
Praise: Regular praise boosts morale and reinforces positive behavior, contributing
to overall job satisfaction.
Growth: Opportunities for personal and professional growth motivate employees
to develop their skills and advance their careers.
Financial Security: Ensuring financial security through stable employment and
benefits helps employees feel secure and valued in their roles.
Adams' Equity Theory of Motivation emphasizes the importance of fairness and
comparison in work relationships. To be deemed equitable, a working relationship
must meet two criteria:
Firstly, individuals must perceive the reward they receive for their contributions
as inherently fair.
Secondly, they must perceive that the rewards they receive, relative to their
contributions, are comparable to those received by their peers within the
organization.
If both conditions are met, it suggests a fair and equitable working arrangement
may be in place, likely resulting in motivation among individuals.
Adams' Equity Theory of Motivation has gained significant traction in the realm of
work and has been integrated into the HR strategies and decision-making
processes of numerous organizations. The fundamental principle of the theory,
highlighting the significance of fairness in fostering motivation, influences how
organizations perceive their interactions with employees. Many organizations
prioritize organizational fairness and justice in their interactions with employees,
recognizing their crucial role in fostering engagement, motivatiWork motivation in
industrial psychology refers to the set of psychological forces that determine the
direction, intensity, and persistence of an individual’s behavior in an organizational
setting. It is a crucial aspect studied in industrial and organizational (I/O) psychology to
understand and improve employee performance, satisfaction, and productivity.

on, employee retention, and overall productivity.

Adams' equity theory posits that the perceived fairness of rewards and
contributions among peer groups significantly impacts motivation. From a
leadership and management standpoint, this underscores the importance of
cultivating a sense of fairness within a team to optimize motivation, engagement,
and performance. Achieving this involves two key approaches.
Firstly, leaders and managers should focus on ensuring an equitable relationship
between contributions and rewards. This entails avoiding favoritism, benchmarking
employee performance, providing equal opportunities for individuals to showcase
their capabilities, and distributing recognition fairly based on merit. Addressing
negative behaviors promptly is also essential, as overlooking them can foster a
sense of unfairness.
Secondly, addressing perceptions regarding the contribution-reward relationship
requires fostering transparency regarding each team member's contributions. Lack
of information often leads to unhelpful speculation, so leaders should prioritize
keeping their teams well-informed. Additionally, efforts should be made to establish
a culture that values fairness, showcasing instances of fair treatment, embedding
fairness-related values, and sharing stories that exemplify fairness.
While Adams' equity theory has faced criticism, particularly regarding its underlying
assumptions and real-world applicability, it generally enjoys greater acceptance
than earlier content-based models of motivation. Although many critiques stem
from its predominantly laboratory-based assessment, the equity model is widely
embraced overall. In essence, we hold the equity model in high regard, considering
it a straightforward framework for understanding motivation and fairness in the
workplace. Moreover, it offers clear guidance for individual behavior, leadership,
and organizational practices. We believe that familiarity with and learning from this
model can benefit individuals, leaders, and organizations alike.