Expectancy Theory: Victor Vroom developed the expectancy theory, which suggests that individual’s expectations about their ability to accomplish something will affect their success in accomplishing it. Therefore, this theory is based on cognition – on though processes that individuals use. The expectancy theory is based on an individual’s effort and performance, as well as the desirability of outcomes associated with high performance. The value of or preference for an outcome is called valence. To determine valence, people will ask themselves if they can accomplish a goal, how important is the goal to them (in the immediate as well as the long term), and what course of action will provide the greatest reward. An individual’s expectation of achieving the outcome is crucial to success and many factors influence this.  The expectancy theory can have applied through incentive systems that identify desired outcomes and give all workers the same opportunities to achieve rewards, such as stock ownership or other recognition for achievement.

  • A combination of forces determines behaviour
  • Individuals decide their own behaviours in organizations
  • Different individuals have different needs and goals, and want different rewards
  • Individuals decide among alternatives based on their perceptions.

Key variables

  • First-level outcomes-results of doing the job. 
  • Second-level outcomes-positive or negative events produced by first-level outcomes
  • Expectancy- effort-performance belief 
  • Instrumentality-relationship between first-level and second level outcomes 
  • Valence-preference for a second-level outcome.

organizational behaviour

February 11, 2018