Expectancy Theory of Motivation One process model of motivation, expectancy theory, will be discussed and applied in the context

of compensation because it is the most useful (or practical) in understanding the relationship between compensation, rewards, and motivation. This discussion has been part of the book up to the 6th edition, but removed because some reviewers considered it as a repetition of material covered in O courses. !e offer it here as a supplement to show how "xpectancy Theory applies specifically to the #$ field. The Expectancy Theory Model of Motivation The expectancy theory model of motivation is probably the most practical and powerful tool for human resource managers to demonstrate to other managers the importance of all human resource functions in creating a motivating environment.% &f the expectancy theory model is operationali'ed and followed in an organi'ation, there is a strong probability that its employees will be highly motivated. The theory even allows managers to use numbers to determine the strength of the motivation of their employees, although this is rarely done. The expectancy model discussed here was developed by (orter and )awler (%*+,). -t the heart of the model are three components, as shown in .igure %/ the effort0performance probability ("(), the performance0outcome probability ((O), and the value of an outcome (1). "xpectancy suggests that an employee2s productivity ultimately depends on his or her answers to three 3uestions/ Figure 1

%. 4iven your abilities, experiences, self0confidence, and your understanding of your supervisor2s expectations, on a scale of 'ero to one, what is the probability5your gut feeling5that your effort will result in a superior performance6 (7an & do it6) 8. On a scale from 'ero to one, how sure are you that when you do a good 9ob your boss will reward you6 (!hat is in it for me6) ,. Of what value is the outcome to you6 (#ow much do & want it6) The complete model is shown in .igure 8. "ffort0performance probability ("() is the likelihood that an employee2s effort results in high performance. &f the employee is not prepared, has not understood the explanations regarding expectations, and has low self0confidence, his or her estimation of the probability to perform well will be low (e.g., .% or .8). - more experienced employee may feel a probability of .: or .6 in succeeding, and a highly skilled, experienced, self0confident employee will be 3uite optimistic in succeeding, say .; or .*, or will be absolutely sure/ %.<. Figure 2

(erformance0outcome probability ((O) is the likelihood5as perceived by the employee5that a high performance will be rewarded. The linkage between performance and outcome (rewards) has to be made clear to the employee. This is the responsibility of the manager. The value of an outcome or reward (1) is more difficult to measure. &t would be easy if only money were involved5for example, bonuses or pay raises5but many outcomes are intangibles, such as praise, recognition, and intrinsic rewards, or have value beyond money, such as promotion, more vacation time, or a dinner with the boss. The value of an outcome is determined on a scale from =% to >% and is based on the personal preferences of each employee. - younger employee, for example, may value money (.*), may not care as much about a pension plan (.8), and may dislike a transfer to head3uarters (0.6) (the minus sign is a reminder that 9ob outcomes can be negative, that is, be demotivators). -n older employee may have 3uite different preferences/ .? for money, .; for a pension plan, and .+ for a transfer. Of more practical importance to managers are the three other components of the expectancy model/ ability, role clarity, and e3uity (boxes -, , and 7 in .igure 8). -bility refers to the personal characteristics the employee brings to the 9ob. &t also symboli'es one of the most crucial decisions a manager must make/ hiring the right person for the 9ob. &f something goes wrong here, it usually will haunt the manager and the organi'ation for a long time. .or the human resource manager, it is therefore necessary to ensure that the organi'ation2s selection system is working, that the recruitment process is done properly, and that employment planning is ade3uate. @oreover, it should be pointed out that all these functions cannot be done properly without having carried out a thorough 9ob analysis, a good illustration of the systems concept in human resource management.

- listing of typical characteristics that recruiters look for in employees would contain the following/ A A A A A A A A -bility -ptitude -ttitude 7ommitment 7ommunication skills Dedication Determination "ducation A A A A A A A A "xperiences &ntelligence Bob skills )eadership Celf0esteem Cense of humour Ckill level Team orientation

This list is by no means complete. $ecruiters must develop their own list of selection criteria, based on the specific 9ob re3uirements in their organi'ation. $ole clarity refers to the ability of a manager to explain to each employee what is expected regarding performance levels and standards. &t is useful to look at two components of role clarity separately/ the supervisor and the organi'ation. 7learly, the leadership style of supervisors will have an impact on role clarity, as will their ability to communicate with employees and to build employee trust5both in the supervisor and among other employees, thereby creating a true team spirit. @anagement style also has an impact, but this is more influenced by the organi'ational culture. The organi'ational component also includes the orientation program, a valid 9ob description, relevant training, and the clarity of the performance0reward connections through an effective wage and salary administration and performance appraisal process. The following is a listing of individual parts of the role clarity variable/ Organizational Factors Managerial Factors A @ission statement A )eadership style A 4oals and ob9ectives A @anagement style A 7ulture A 7oaching A Organi'ational structure A 7ounselling A &nternalEexternal recruitment A 7ommunication A Bob description A Bob design A Orientation A Training and development A 7areer opportunities A (erformance appraisal A 7ompensation and incentive systems A "mployee assistance programs -ll of these factors are under the control of management in general or the specific supervisor. &f many or most of these factors are in place in an organi'ation and are used properly, management will have created an organi'ational environment that is highly conducive to motivating employees. Come readers will have noticed that the above list is practically the contents listing of a human resource textbook. &n other words/ the expectancy model shows the application of all human resource functions. Fo other motivation model offers such a complete utili'ation of the field of human resource management. The third variable, e3uity, is a crucial one. Only if performance is fairly and e3uitably rewarded will employees experience 9ob satisfaction. The (perceived) value of a reward is one of the more important motivating factors in the expectancy model. &f managers want to motivate their employees, they must offer something of value to them 5 something that fulfills a need or needs. Organi'ations use mainly money as a reward, because it is much easier to administer than an individuali'ed reward program. Ctill, managers can find out what their employees value and can take this into account when they want to reward deserving staff members.

The following story demonstrates how the expectancy model can be operationali'ed/ - bank manager needs to hire a teller. Che interviews many applicants and decides on one who has the necessary abilities, skills, and traits. Che gives the teller a thorough briefing on what will be expected of him, and explains how his performance will be measured. The teller also receives a 9ob description that explains all the tasks he is expected to fulfill, complete with performance standards, priorities, and accountabilities (role clarity). The manager makes sure that for the first few days the trainee is working with an experienced teller who guides him through the routines. The manager also does some role0playing with the trainee to make sure that he knows how to react when he encounters an angry customer (thereby developing self0confidence, which translates into higher "(). Che also makes it very clear to him that she is always available if he needs any help and that he can also rely on the support of his colleagues in the branch (supervisory and peer support raises self0confidence, resulting again in higher "(). The manager explains to the new teller how the bank2s pay system works, and she describes the performance appraisal system and the criteria that are used to assess a teller2s performance. Che also discusses the performance ob9ectives with the teller and agrees with him on some realistic goals and sets deadlines for their accomplishment. During the discussion, she tries to find out what rewards are valued by the teller. &f, for example, it turns out that the teller is more interested in time off than in bonuses, the manager will keep this in mind for reward purposes.8 -fter reviewing the theoretical model, letGs look at its practical application. #ere is the step0by0step approach/ %. 8. ,. ?. :. $ecruitment and selection/ #ire employees with the proper abilities and skills. Orientation and training/ 7larify employees2 roles by setting goals, providing 9ob descriptions, and honing skills. (ay and incentives/ Offer valued rewards for high performance. @ake sure employees understand performance0reward connection. (erformance appraisal (communication and trust)/ e a coach and counsellor, give feedback, and improve employees2 self0esteem and confidence. @otivation/ 7reate the proper 9ob environment through team building, 9ob design, and employee participation (buy0in, empowerment).

!ith this approach, the manager has created the appropriate environment and preconditions for motivating the employee. &t should be emphasi'ed again that the hiring decision is the most crucial decision the manager has to make. &f candidates are hired with the wrong attitudes or inade3uate skills, or if they lack the necessary experience to do a 9ob properly, their effort0performance probability will likely be low, a situation that is often difficult to remedy. #owever, a good hiring decision will not always ensure a motivated employee. &t is a necessary, but not sufficient, condition. The motivating 9ob environment must be created too. 7onversely, a bungled hiring decision will probably not be remedied by a highly motivating environment. -n employee with the wrong attitude, aptitude, or lack of skill or experience will gain little from a better 9ob description or mission statement. The expectancy model is valuable for managers because of its practicality. &t explains the factors that influence or determine motivation, which in turn allows managers to influence some of these factors.
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7omment from the first author, #ermann Cchwind/ H& worked for %: years in industry, %< of them as a manager, then 8: years as an academic speciali'ing in #$ @anagement. & say with conviction, that the "xpectancy @odel of @otivation is by far the most practical guide to motivating employees & know.I 8 This story was told by a bank branch manager during a management seminar given by the first author for the &nstitute of 7anadian ankers. Che had applied the expectancy model without knowing the theory.