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Expectancy theory is a theory that stated that a person behaves in a particular way because they
want to achieve the results that they desire from that behavior over others. For example a student
will study hard because they believe or expect that it will result in good grades. It was developed
by Victor Vroom and has explains the behavior of individuals when making decisions.
The theory has three key elements broken down into three main parts which are:
Expectancy Effort Performance (EP) -This is the probability that the effort put will achieve
the performance that is wanted or desired by the individual. The effort that the employee or
individual puts should help them receive the rewards they desire. For example an employee that
has a project should have access to the different materials or things they may need to achieve the
outcome they desire. This will motivate them as if the goal is achievable they will be motivated
to put effort to achieve it.
Instrumentality Performance Outcome (PO) -This is based on what the employees think
that they will get or what they perceive the pay off for the expected behavior.
Valence V(R).-This refers to the connections that the individuals have with the rewards.
Employees may want or have a connection with extrinsic rewards such as money, promotion,
time-off, benefits or they may desire more intrinsic rewards such as achievement. This plays an
important part in motivating the employees.
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