MGT 500 Lecture Notes - Lecture 96: The Incentive, Expectancy Theory, Blackballing

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Expectancy theory says that the strength of the tendency of how we act depends on the strength of our expectation in a certain outcome and its attractiveness. The theory therefore focuses on three relationships: expectancy: the effort-performance relationship: The probability that the person perceives about exerting a certain amount of effort that will lead to performance: instrumentality: the performance-reward relationship: The degree that a person think performing at a certain level will lead to attaining a certain desired outcome: valence: the rewards-personal goals relationship: The degree that rewards from an organization satisfy someone"s personal needs or goals and the attractiveness of those potential rewards to the person. Expectancy theory assists in explaining why a lot of people aren"t motivated in their jobs and only do what they need to get by. For a lot of people, the answer is no.

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