Question

Define the factors that create motivation according to the Expectancy Theory proposed by the psychologist Victory Vroom. Discuss the three implications of this theory for managers in designing the incentive plans.

Answer 1

As per the expectancy theory, the motivation of a person can result from the level of expectation of the employee about the rewards which is called valence and the evaluation of the probability that his efforts can provide the expected performance ( expectancy) and the belief that the level of performance exhibited by him will result in some sort of reward which is termed as instrumentality.

The 3 most important implications of the expectancy theory=

With the help of this theory, the managers can understand the different factors that can result in the higher motivation of the employees and thus the rewards can be developed accordingly that motivates the person

As different employees have a different expectation about the rewards thus the manager can customize the incentive plans depending on the individual factors

The managers can have a better understanding of the factors that can motivate the employees and thus they can prepare the incentive plans that help them achieve a certain level of the performance of the employees by setting the goals in such a way that it keeps on motivating the manpower.