Expectancy theory was developed by Victor Vroom in the earlier part of
the 20th century. His theory explores why job satisfaction is a vital part of
organisational success. The theory shows how job satisfaction leads to an
individual being motivated to expend their efforts on behalf of the organisation.
Linking Effort to Outcomes
Expectancy theory relies upon the fact that there is a direct link
between the amount of effort that we put in, the level of performance that
we deliver and the personal outcomes that we receive.
As an example, the desired outcome for a sales rep might be the
commission they receive on their sales. The amount of commission that they
receive would be directly related to their sales volume, and the achievement of their sales
volume is directly linked to the
amount of effort they put into the job. Therefore, in order to receive
more commission, they only have to increase their efforts. If the sales
rep desires more commission, they will be motivated to increase their
effort to increase their sales volume, which benefits the organisation.
In order to motivate someone then all we need to do is ensure that the
outcomes available are ones that are desired by the worker, and ensure
that a person believes that their effort directly affects their
performance and that the level of their performance will determine whether
they get their desired outcomes.
The problem comes when a worker does not know what their desired
outcomes are. Mostly we think in terms of monetary reward. This is not
always the case however. The outcomes can be categorised as either
extrinsic, they are supplied to us by an external body, or intrinsic, they
are supplied by our own internal beliefs and values.
Extrinsic Outcomes
Extrinsic outcomes rely on a third party to give them to us. Pay is an
obvious example of an extrinsic outcome. It may however be a company car,
health benefits, or something less obvious as praise and recognition for
doing a good job. The respect of others is also an extrinsic outcome
because other people have to give it to us. An important outcome for many
is social inclusion, or feeling part of a team.
Intrinsic Outcomes
Intrinsic outcomes can be a little harder to spot. It may be just a
feeling of having done a good job. It might be a need for status or self
worth. Self-respect is one very powerful intrinsic outcome, for it has
been said that we cannot give love to anyone in any greater amount than we
love ourselves. Personal growth may also be an intrinsic outcome. Many
people need to feel that they are getting better, and that feeling comes
from within, although it may be generated by the feedback of others.
Once we know what we want, we need to be able to identify a clear link
between our efforts and the attainment of those outcomes. This attainment
is usually as a result of achieving some level of performance.
Linking Effort to Performance
There will be no motivation to expend effort if the link between effort
and performance is poor. If we feel that we cannot achieve an improvement
in our performance, no matter how hard we work, this will severely damage
the link. Consequently we will not be inclined to expend the extra effort.
There are four factors that can affect the relationship between effort and
performance for an individual.
Ability: We need to ensure that the individual has the
ability to deliver the level of performance expected. To do this they will
require an accurate person specification, listing the skills and
attributes required of any person to do the job. Where they do not have
the ability, the person will require access to training to bring their
skills up to the grade required to competently complete the role or
function. Until they have these, a persons ability to achieve the required
level of performance will be hampered. Working harder will not necessarily
result in a corresponding increase in performance.
Resources: The individual needs free
access to the resources needed to deliver the required level of
performance. There is always an optimum level of resources required for
any role or function. Resources below this level will affect an employees
ability to deliver the required level of performance, irrespective of the
additional effort expended. A surplus of resources will not necessarily
increase the individual performance, but will allow the individual to
achieve the expected level of performance. It is the role of management to
determine this optimum level and ensure that resources are not wasted.
Clarity of objectives: The criteria
for the performance must be unambiguous. The individual should therefore
have a clear job description with well formulated targets and goals. There must also
be a
clear and fair way of the performance that is delivered being measured. The individual
requires frequent feedback about the level of performance they are achieving, in
order to associate that level with the amount of effort they are
expending. By providing clear and open feedback the individual builds the
belief that their level of performance is directly related to the amount
and type of effort that they expend.
Self belief: The individual must
believe that they are capable of achieving the level of performance
needed. It is not enough for others to assure them that they can do it. As
Henry Ford noted, " If you believe that you can, or you believe that
you can't, you are right." This is one of the hardest areas for a
manager to get right. Being dogmatic or over-critical can destroy an
individuals self belief. It is generating this self-belief in others that
marks the difference between a poor manager and a great leader.
Linking Performance to Satisfaction
As noted above, it is important that an individual
believes that their rewards (desired outcomes) are directly linked to
their performance. They also need to believe that any punishments
(undesired outcomes) are also linked to a failure to achieve minimum
performance standards.
Because everyone is different it is impossible to
guess what specific outcomes an individual may seek from their efforts. It
is also likely that the individual may not have spent too much time
reflecting what these specific outcomes are. It would be fair to assume
however that everyone seeks both intrinsic and extrinsic outcomes from
their efforts. It is their ability to influence the delivery of these
outcomes, by the regulation of their efforts, that drives their job
satisfaction and hence their willingness to commit those efforts to the
needs of the organisation. The diagram below illustrates how all of the
above comes together to form a closed loop system.
As can be seen, the Outcomes are summed with a
perceived fair rewards system. This is of particular importance. Even if
the direct links between effort, performance and outcomes can be
demonstrated, the outcomes achieved for the effort expended must be seen
to be fair. This perception is again an internal concept. A worker in a
developing country may be willing to work for only £5 a day. A worker in
the UK may expect more than £5 an hour. People routinely compare what
they are getting for their efforts with those of their peers.
The UK has a
tragic history where women were routinely paid less than men for doing a
similar job. This was seen as unfair and those women that felt
discriminated against became de-motivated and declined to expend
additional efforts for the benefit of their organisation. Although it is now
illegal to discriminate in this way, sadly I am sure it still occurs.
Where there are clear links between effort,
performance and perceived fair outcomes, this will
inevitably lead to job satisfaction. It is job satisfaction that drives an
individual to continue to expend their efforts for the benefit of their
organisation. |
