SHRI RAMSWAROOP MEMORIAL

COLLEGE OF ENGINEERING AND

MANAGEMENT
SUBJECT CODE : KMBN101

SUBJECT NAME: MANAGEMENT CONCEPT AND ORGANISATIONAL

BEHAVIOUR

PRESENTATION ON: VROOMS EXPECTANCY THEORY

PRESENTED BY: ASTHA SHARMA, AYUSH PAL, AVNISH KUMAR

TIWARI
 INTRODUCTION TO VROOMS
EXPECTANCY THEORY
• Victor H. Vroom developed the Expectancy Theory in 1964 due to his study
related to motivations that guide decision making. The theory addresses the
need for organizations to provide rewards to employees based on their
performance, to ensure that the given reward is well deserved, and desired
by the one who receives it.

• The Expectancy Theory is relevant for managers, as it can help them better
understand the motivations of their team and enable them to motivate them
for optimum workplace performance.

• Criticizing Herzberg’s two factors theory, he said that a person’s motivation

towards an action at any time would be determined by an individual’s
perception that a certain type of action would led to a specific outcome and
his personal preference for this outcome.
 What are Expectancy, Instrumentality and Valence?

• EXPECTANCY- If an employee puts in the effort, they expect a certain

result. If they do not get that result, they will not be motivated to make the
effort again and so will not be satisfied with the outcome.
• Instrumentality- Instrumentality is the belief that a person will
receive a reward if the performance expectation is met. 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.
• Valence- It is the significance associated by an individual about the
expected outcome. It is an expected and not the actual satisfaction that an
employee expects to receive after achieving the goals.
 ADVANTAGES
• The expectancy model is highly useful in understanding organisational behaviour. It can
improve the relationship between the individual and the organisational goals. This model
explains how individual’s goals influence his efforts and like need-based models reveal that
individual behaviour is goal oriented.

• The expectancy theory is a cognitive theory, which values human dignity. Individuals are
considered rational human beings who can anticipate their future on the basis of their
beliefs and expectations.

• This theory helps the managers in looking beyond what Maslow and Herzberg implied.
According to him motivation does not mean satisfying the unsatisfied needs. The managers
must make it possible for an employee to see that effort can result in appropriate need
satisfying rewards. This level of expectations will improve the motivation to work.
 DISADVANTAGES
•  Vroom’s theory is difficult to research and apply in practice. This is evident by the fact
that there have been a very few research studies designed specifically to test Vroom’s
theory.

• This theory assumes man to be a rational human being who makes all the decisions
consciously. But there are numerous instances where decisions are taken with no
conscious thought. This is particularly true for routine jobs.

• Although, it is an important theory of motivation but it is quite complex. Many managers,

in actual organisational situations, do not have the time or sources to use a complex
system on the job. To conclude, we can say that from the theoretical point of view, this
model is a step in the right direction, but from practical point of view, it does not help the
manager in solving the complex motivational problem.
 USING THE EXPECTANCY THEORY FOR EFFECTIVE
ORGANISATIONAL MANAGEMENT

• In some organizations, certain types of promotions can be limited to tenure or other

variables which some employees have no hope of meeting. Would they be motivated
enough to work as hard as they would if they knew their hard work would be following
their desired reward? These are essential questions that management needs to address for
employee motivation.

• The reward system in organizations can often be flawed, resulting in employee

demotivation due to a lack of understanding of what people in the organization deem
rewarding. Some employees are motivated by an increase in salary or acknowledgment for
their efforts, such as awards and certificates. However, people who have several years of
experience under their belt and have a good salary scale might find it more attractive to get
a designation which they perceive to be rewarding enough to acknowledge their authority
within the organization.
• Managers can use the Expectancy Theory to understand better what motivates
their team members by analyzing expectancy, instrumentality, and valence
variables. There are some ways this can be done. For example, a survey can be
conducted across the organization to analyze employee motivation. Similarly,
managers can use their own experience to understand what their team members
desire and motivate them accordingly.

• Even when an organization might not be able to afford the type of reward
employees desire, methods are used to optimize productivity through motivation.
Companies like Amazon have successfully achieved this by giving company shares
to employees. This was done when the company was not the world’s largest online
retailer and found its feet. The employees were motivated enough to work hard to
grow since they felt a significant stake in the business.