Thursday, November 12, 2020

Application of Vroom’s Theory of Expectancy in Consumer Durable Industry

 

In expectancy theory, people are motivated to do something because they think their actions will take to their desired outcome (Redmond, 2014). Expectancy theory proposes that work motivation is possible upon the recognize association between performance and outcomes and individuals modify their behaviour based on their determination of anticipated outcomes (Chen & Fang, 2008). In other words, it can help to illustrate why a person performs at a particular level. This has a practical and positive development of improving motivation because it can, and has, helped leaders create motivational programs in the organization. This theory provides the idea that an individual's motivation comes from admitting that they will get what they desire in the form of a reward. This theory provides leaders with a basis on which to increase a better understanding of ways to motivate subordinates (AETC, 2008). Expectancy theory is categorized as a process theory of motivation because it highlights individual perceptions of the environment and successive relation arising as a result of personal expectations. The theory reveal that individuals have different sets of goals and can be motivated if they believe that (figure 07);

 Figure 07 – Expectancy Theory of Motivation

(Source – S. McShane; S. Steen, 2012)


Vroom's Expectancy Theory is based on three (03) major components:

Expectancy: The belief that higher or increased effort will yield better performance. Individuals also choose to behave in a specific manner based on his or her analysis of the perceived outcome associated with that behaviour and the expectation that such behaviour will result in desired reward (Terera, & Ngirande,2014). Expectancy can be influenced by several factors such as one person’s abilities, colleagues/superior support, competencies and abilities as a result of work experience, clarity of goals regarding performance and resources availability (Gaignard, 2003).

Instrumentality: The thought that if an individual performs well, then a valued outcome will come to that individual (Vroom, 1964). It is an individual’s estimate of the possibility that a given level of achieved task performance will lead to different outcomes (Lunenburg, 2011).

Valence: Valence means "value" and refers to beliefs about the worth the of outcome (Redmond, 2014). There are individual variations in the level of value related with any specific outcome. For instance, a bonus may not increase motivation for an employee who is motivated by traditional recognition or by increased position such as promotion. Valence can be thought of as the pressure or importance that a person puts on an expected outcome (Luneburg, 2011).

Vroom concludes that the force of motivation in an employee can be calculated using the following formula: 

Motivation = Valence*Expectancy*Instrumentality

When this theory combines with practice and as an example, the leading consumer durable company in Sri Lanka having 330 showrooms island wide. Each branch managers’ expectations differ from one another but the most desired expectation is to become the highest selling contribution showroom of the company. For this, branch manager has to have the right resources to get the job done like availability of products, has the right skills to do the task on hand, and they must have the reinforcement to get the job done. That support may come from the boss or by just being given the right information or tools to finish the job like advertising, BTL activities. Although people correlate high performance with high rewards and as a result of that highest selling branch manager entitle to a family trip to Europe with Rs. 250,000/- cash at the annual marketing convention.

According to Vroom's expectancy theory, the level of expectancy will decide the motivation level of an employee. As shown in video 2, an employee with high level of positive attitudes and who believe that higher or increased effort will yield better performance, will always accept the challenge. Employee will be dreaming the result and to gain that he/she will adjust the back ground work accordingly. This will create the atmosphere which was important to go for the target. Positive minded attitude and work according to the plan will create a dream come true. Employees with low expectancy will not motivate by targets or an objective because they were analysing and measure whether the reword was worth enough according to the required work. Employee with negative attitudes will not motivate by himself and also the other employees.

Video 2: Vroom's Expectancy Theory


(Source – Jiko, 2018)


References

Fang, C. Y. (2008).  The moderating effect of impression management on the organizational politics performance relationship. Journal of Business Ethics, 79(3).

Gaignard, L., ‘Légèreté d’être et estime de soi’, 2003, Travailler, vol. 2003/2, no. 10, pp. 77-92.

Lunenburg FC (2011). Expectancy theory of motivation: motivating by altering motivation. Internal Journal of Management, Business and Administration 5(1): 1-5.

McShane,Steen, S. (2012). Canadian Organizational Behaviour (8th edition) McGraw-Hill Ryerson.

Redmond, B.F. (2014). Lecture on expectancy theory (Lesson 4). Personal Collection of B.F. Redmond, Penn State University, University Park, PA.

Terera, S., & Ngirande, H. (2014). The impact of rewards on job satisfaction and employee retention. Mediterranean Journal of Social Sciences, 5, 481-489.doi:10.5901/mjss. 2014. v5n1p481.

Vroom, V. (1964). Work and motivation. New York, NY: Wiley.









15 comments:

  1. Hi Chamila, agree with you Vroom’s expectancy theory was coined by (Vroom, 1964). It is often referred to as the VIE theory because it explains employee motivation in terms of three factors: valence, equipment, and expectation. According to his theory, employee effort will lead to performance and performance to reward. Consequences can be both positive and negative. When the reward is positive and the reward is negative, the employee is highly motivated (Mohamed, 2020).

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    1. Thanks Ranga for your valuable comment. In expectancy theory, people are motivated to do something because they think their actions will lead to their desired outcome (Redmond, 2014). Expectancy theory proposes that work motivation is dependent upon the perceived association between performance and outcomes and individuals modify their behavior based on their calculation of anticipated outcomes (Chen & Fang, 2008).

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  2. According to the Parijat & Bagga (2014), vroom’s expectancy theory is more comprehensive and realistic than other motivation theories. As practical approach with your organization, like family trip to Europe with Rs 250,000/- cash to the highest selling branch manager. It will have a good impact on instrumentality factor in Vroom’s Theory

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    1. Thanks Rumesh for your valuable comment. Employees with low expectancy will not motivate by targets or an objective because they were analyzing and measure whether the reword was worth enough according to the required work. Employee with negative attitudes will not motivate by himself and also the other employees (Jiko, 2018).

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  3. Employees are much keener on the rewards and recognition that they received from the effort they have put on. Also, theory elucidates that performance, motivation, and effort are within an individual’s motivation and variables such as valence, instrumentality, and expectancy verify the theory (Badubi 2017). The importance of the theory is to understand the individual’s relationship between effort and performance, between performance and rewards and the relationship between the rewards and satisfaction. Also, it’s a key to succeed in the current competitive market conditions to retain the skilled employees who are motivated to fulfill their goals for rewards.

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    1. Thanks Dimuthu for your valuable comment. Lam’s et al. (2001) research found that reward (including benefits) has a positive relationship with overall job satisfaction. In fact, the variable ‘reward’ emerged as the most important factor in predicting overall job satisfaction. Arnolds and Boshoff (2001), found that employees are significantly motivated by monetary rewards and basically pay has symbolic importance, giving feedback to the employee of his or her worth to the organisation (Pearson,1991).

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  4. According to the Parijat (2014), There are three relationships:
    1.Relationship between Efforts and Performance. This is known as Expectancy (E)
    2.Relationship between Performance and Rewards/Work Outcomes. This is called Instrumentality (I)
    3.Relationship between Rewards/Work Outcomes and Personal goals. This is known as Valence (V)

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    1. Thanks Supun for your valuable comment. . This theory provides the idea that an individual's motivation comes from believing they will get what they desire in the form of a reward. This theory provides leaders with a foundation on which to build a better understanding of ways to motivate subordinates (AETC, 2008).

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  5. The reason of the employee works in the organization is fulfilling their personal goals, these goals can be met by the organizational rewards or work outcomes. Therefore, the relationship between personal goals, organizational rewards or work outcomes is more important (Parijat and Shilpi, 2014). People’s motivation explained the combination of three factors, which are Expectancy, instrumentality, and valence. According to Nemati ( 2016) “ Expectancy Theory is a the multiplicative function of valence, instrumentality, and expectancy”.

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    1. Thanks Thilini for your valuable comment. ). Expectancy theory is classified as a process theory of motivation because it emphasizes individual perceptions of the environment and subsequent interactions arising as a consequence of personal expectations (AETC, 2008).

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  6. Agreed. Employee motivation also will benefit the organisation in the manner of retention. Recruitment and training is an expensive process in the enterprise A company that retains skilled employees and minimizes turnover will reduce this expense and increase its profits. The best way is to create a corporate culture and cultivate proactive employees. Businesses have a good reputation in good or bad places. If you manage to gain the reputation of the former, you will have a constant stream of people who want to work for the organisation, and those who are working now will hesitate to leave. These factors will contribute to the development of a stable and productive corporate culture (McKee, 2018)

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    1. Thanks Malika for your valuable comment. Building a committed and motivated workforce is well-chosen as the main objective, and a key to success in the competitive environment (Mohsen et al. 2004). Engaged employees have a knowledge of energetic and successful connection with their work activities and see themselves as capable to deal well with the demands of their job (Schaufeli & Bakker, 2004).

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  7. I agree with you. Yes, Vroom’s Expectancy theory explains that behavior is the result of conscious choice between options. Its purpose is to maximize fun and minimize pain (Barg,J.E. et al. 2014).

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  8. Worm's approach emphasizes the notion that leaders can adopt different leadership styles, however, leadership is only effective to the extent that it allows subordinates to participate in decision - making (Walker, 2011).

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  9. duurzame productenWorm's approach emphasizes the notion that leaders can adopt different leadership styles, however, leadership is only effective to the extent that it allows subordinates to participate in decision

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