Business Basics

Expectancy theory

  • Created by Henry Stewart Talks
Published on September 30, 2025   3 min

A selection of talks on Management, Leadership & Organisation

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Expectancy Theory is a foundational framework for understanding motivation in organisations. Developed by Victor Vroom, this theory suggests that an individual’s motivation to act in a certain way is determined by their expectations of the outcome. In simple terms, people make decisions about how much effort to put into a task based on whether they believe their effort will lead to good performance, and whether that performance will be rewarded in a way they personally value. This approach emphasises the cognitive processes individuals use when choosing how they behave at work, distinguishing Expectancy Theory from other motivation theories that focus on basic needs or traits. The theory rests on three main components: expectancy, instrumentality, and valence. Expectancy is the belief that one’s effort will result in successful performance. Instrumentality refers to the belief that good performance will actually be recognised and lead to the expected reward. Valence is about how much value the individual places on the reward itself. For motivation to be high, all three factors must be positive and strong: an individual must feel confident their effort will be effective, believe they will receive a reward if they perform well, and genuinely desire that particular reward. If any element is weak, overall motivation will decline. Expectancy Theory helps explain why some employees go the extra mile while others do just enough to get by. If employees do not believe that extra effort will make

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