{"id":9601,"date":"2017-01-20T18:36:11","date_gmt":"2017-01-20T18:36:11","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/masterybusiness2xngcxmasterspring2016\/?post_type=chapter&#038;p=9601"},"modified":"2024-05-07T16:21:26","modified_gmt":"2024-05-07T16:21:26","slug":"expectancy-theory","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/expectancy-theory\/","title":{"raw":"Expectancy Theory","rendered":"Expectancy Theory"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Describe the ways in which managers can use expectancy theory to motivate employees<\/li>\r\n<\/ul>\r\n<\/div>\r\n<p class=\"title editable block\">Expectancy theory, initially put forward by <strong>Victor Vroom<\/strong> at the Yale School of Management, suggests that behavior is motivated by anticipated results or consequences. Vroom proposed that a person decides to behave in a certain way based on the expected result of the chosen\u00a0behavior. For example, people will be willing to work harder if they think the extra effort will be rewarded.<\/p>\r\nIn essence, individuals make choices based on estimates of how well the <em>expected <\/em>results of a given behavior are going to match up with or eventually lead to the <em>desired <\/em>results. This process begins in childhood and continues throughout a person's life. Expectancy theory has three components: expectancy, instrumentality, and valence.\r\n<ul>\r\n \t<li><strong>Expectancy<\/strong> is the individual's belief\u00a0that effort will lead to the intended performance goals. Expectancy describes the person's belief\u00a0that \"I can do this.\" Usually, this belief is based on an individual's past experience, self-confidence, and the perceived difficulty of the performance standard or goal. Factors associated with the individual's expectancy perception are competence, goal difficulty, and control.<\/li>\r\n \t<li><strong>Instrumentality<\/strong> is\u00a0the belief that a person will receive a desired outcome if the performance expectation is met. Instrumentality reflects the person's belief\u00a0that, \"If I accomplish this, I will get\u00a0that.\" The desired outcome may come in the form of a pay increase, promotion, recognition, or sense of accomplishment. Having clear\u00a0policies in place\u2014preferably spelled out in a contract\u2014guarantees that the reward will be delivered if the\u00a0agreed-upon performance is met. Instrumentality is low when the outcome is vague or uncertain, or if the outcome is the same for all possible levels of performance.<\/li>\r\n \t<li><strong>Valence<\/strong>\u00a0is the unique value an individual\u00a0places on a particular outcome. Valence captures\u00a0the fact that \"I find this\u00a0particular outcome desirable\u00a0because I'm me.\" Factors associated with the individual's valence are needs, goals, preferences, values, sources of motivation, and the strength of an individual's preference for a particular outcome. An outcome that one employee finds motivating and desirable\u2014such as a bonus or pay raise\u2014may not be motivating and desirable to another (who may, for example, prefer\u00a0greater recognition or more flexible working hours).<\/li>\r\n<\/ul>\r\nExpectancy theory, when properly followed, can help managers understand how individuals are motivated to choose among various behavioral alternatives. To enhance the connection between performance and outcomes, managers should use systems that tie rewards very closely to performance. They\u00a0can also use training to\u00a0help employees improve their abilities and believe that added effort will, in fact, lead to better performance.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/96e3d32e-6a6c-4508-9653-63fe8c93d9f4\r\n\r\n<\/div>\r\nIt's important to understand that expectancy\u00a0theory can run aground if managers interpret\u00a0it too simplistically. Vroom's\u00a0theory entails\u00a0more than just the assumption\u00a0that\u00a0people will work harder if they think\u00a0the effort will be rewarded. The reward needs to be meaningful and take valence into account. Valence has a significant\u00a0cultural as well as personal dimension, as illustrated by the following case.\r\n<div class=\"textbox examples\">\r\n<h3>ASMO in Japan<\/h3>\r\nWhen Japanese motor company ASMO opened a plant in the U.S., it brought with it a large Japanese workforce but hired American managers to oversee operations. The managers, thinking to motivate\u00a0their workers with a reward system, initiated a costly employee-of-the-month program that included free parking and other perks.\r\n\r\nHowever, the program was a huge flop, and participation was disappointingly low. Why?\r\n\r\nThe program required employees to nominate their coworkers to\u00a0be considered for\u00a0the award. Japanese culture values modesty, teamwork, and conformity, and to be put forward or singled out for being special is considered inappropriate and even shameful. To be named Employee of the Month would be a very great embarrassment indeed\u2014not at all the reward that management\u00a0assumed. Especially as companies become more\u00a0culturally diverse, the lesson is that managers need to get to know their employees and their needs\u2014their unique valences\u2014if they want to understand what makes them\u00a0feel motivated, happy, and valued.\r\n\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Describe the ways in which managers can use expectancy theory to motivate employees<\/li>\n<\/ul>\n<\/div>\n<p class=\"title editable block\">Expectancy theory, initially put forward by <strong>Victor Vroom<\/strong> at the Yale School of Management, suggests that behavior is motivated by anticipated results or consequences. Vroom proposed that a person decides to behave in a certain way based on the expected result of the chosen\u00a0behavior. For example, people will be willing to work harder if they think the extra effort will be rewarded.<\/p>\n<p>In essence, individuals make choices based on estimates of how well the <em>expected <\/em>results of a given behavior are going to match up with or eventually lead to the <em>desired <\/em>results. This process begins in childhood and continues throughout a person&#8217;s life. Expectancy theory has three components: expectancy, instrumentality, and valence.<\/p>\n<ul>\n<li><strong>Expectancy<\/strong> is the individual&#8217;s belief\u00a0that effort will lead to the intended performance goals. Expectancy describes the person&#8217;s belief\u00a0that &#8220;I can do this.&#8221; Usually, this belief is based on an individual&#8217;s past experience, self-confidence, and the perceived difficulty of the performance standard or goal. Factors associated with the individual&#8217;s expectancy perception are competence, goal difficulty, and control.<\/li>\n<li><strong>Instrumentality<\/strong> is\u00a0the belief that a person will receive a desired outcome if the performance expectation is met. Instrumentality reflects the person&#8217;s belief\u00a0that, &#8220;If I accomplish this, I will get\u00a0that.&#8221; The desired outcome may come in the form of a pay increase, promotion, recognition, or sense of accomplishment. Having clear\u00a0policies in place\u2014preferably spelled out in a contract\u2014guarantees that the reward will be delivered if the\u00a0agreed-upon performance is met. Instrumentality is low when the outcome is vague or uncertain, or if the outcome is the same for all possible levels of performance.<\/li>\n<li><strong>Valence<\/strong>\u00a0is the unique value an individual\u00a0places on a particular outcome. Valence captures\u00a0the fact that &#8220;I find this\u00a0particular outcome desirable\u00a0because I&#8217;m me.&#8221; Factors associated with the individual&#8217;s valence are needs, goals, preferences, values, sources of motivation, and the strength of an individual&#8217;s preference for a particular outcome. An outcome that one employee finds motivating and desirable\u2014such as a bonus or pay raise\u2014may not be motivating and desirable to another (who may, for example, prefer\u00a0greater recognition or more flexible working hours).<\/li>\n<\/ul>\n<p>Expectancy theory, when properly followed, can help managers understand how individuals are motivated to choose among various behavioral alternatives. To enhance the connection between performance and outcomes, managers should use systems that tie rewards very closely to performance. They\u00a0can also use training to\u00a0help employees improve their abilities and believe that added effort will, in fact, lead to better performance.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_96e3d32e-6a6c-4508-9653-63fe8c93d9f4\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/96e3d32e-6a6c-4508-9653-63fe8c93d9f4?iframe_resize_id=assessment_practice_id_96e3d32e-6a6c-4508-9653-63fe8c93d9f4\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe><\/p>\n<\/div>\n<p>It&#8217;s important to understand that expectancy\u00a0theory can run aground if managers interpret\u00a0it too simplistically. Vroom&#8217;s\u00a0theory entails\u00a0more than just the assumption\u00a0that\u00a0people will work harder if they think\u00a0the effort will be rewarded. The reward needs to be meaningful and take valence into account. Valence has a significant\u00a0cultural as well as personal dimension, as illustrated by the following case.<\/p>\n<div class=\"textbox examples\">\n<h3>ASMO in Japan<\/h3>\n<p>When Japanese motor company ASMO opened a plant in the U.S., it brought with it a large Japanese workforce but hired American managers to oversee operations. The managers, thinking to motivate\u00a0their workers with a reward system, initiated a costly employee-of-the-month program that included free parking and other perks.<\/p>\n<p>However, the program was a huge flop, and participation was disappointingly low. Why?<\/p>\n<p>The program required employees to nominate their coworkers to\u00a0be considered for\u00a0the award. Japanese culture values modesty, teamwork, and conformity, and to be put forward or singled out for being special is considered inappropriate and even shameful. To be named Employee of the Month would be a very great embarrassment indeed\u2014not at all the reward that management\u00a0assumed. Especially as companies become more\u00a0culturally diverse, the lesson is that managers need to get to know their employees and their needs\u2014their unique valences\u2014if they want to understand what makes them\u00a0feel motivated, happy, and valued.<\/p>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-9601\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Authored by<\/strong>: Linda Williams and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Practice Question. <strong>Authored by<\/strong>: Nina Burokas. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Boundless Business. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/courses.lumenlearning.com\/boundless-business\">https:\/\/courses.lumenlearning.com\/boundless-business<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Boundless Management. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/courses.lumenlearning.com\/boundless-management\/\">https:\/\/courses.lumenlearning.com\/boundless-management\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":163,"menu_order":12,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Boundless Business\",\"author\":\"\",\"organization\":\"Boundless\",\"url\":\"https:\/\/courses.lumenlearning.com\/boundless-business\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Boundless Management\",\"author\":\"\",\"organization\":\"Boundless\",\"url\":\"https:\/\/courses.lumenlearning.com\/boundless-management\/\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Revision and adaptation\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Practice Question\",\"author\":\"Nina Burokas\",\"organization\":\"Lumen Learning\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"d86515fc-8ba1-484d-aae2-c4761120b9b1, 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