Expectancy Theory Individual Effort Individual Performance Organizational Rewards 1 2 3 3. Value of potential reward 1. Effort-performance relationship 2. Performance-rewards relationship Expectancy theory argues that an employee will be motivated to produce more when he or she believes that the effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards; and that the rewards will satisfy the employee’s personal goals. This theory focuses on three relationships. 1. The effort-performance relationship is the probability perceived by the individual that exerting a given amount of effort will lead to performance. 2. The performance-rewards relationship is the degree to which an individual believes that performing at a particular level will lead to the attainment of a desired outcome. 3. The rewards-personal goals relationship is the degree to which the rewards of an organization satisfy an individual’s personal goals or needs and the attractiveness of those rewards. Prentice Hall, 2000 Chapter 4

Step 1. Desire to Perform as a Function of Valence and Instrumentality

Step 2. Level of Effort as a Function of Desire and Expectancy Desire to Perform Effort Expectancy

Step 3. Performance as a Function of Effort and Ability

Implications of Expectancy Theory People need to recognize that effort and performance are closely related Manager’s job includes the establishment of conditions that help translate effort into performance Managers need to create linkages between rewards and performance Copyright © 2000 by Harcourt, Inc. All rights reserved.