Expectancy Theory, proposed by Victor Vroom, states that motivation depends on three beliefs:
Expectancy: “If I put in effort, I can perform well.”
Instrumentality: “If I perform well, I will receive a reward.”
Valence: “The reward is meaningful to me.”
Motivation is highest when all three are strong. This theory highlights that individuals are rational decision-makers who evaluate the effort–performance–reward relationship. A disconnect in any link—unclear goals, unreliable reward systems, or rewards that don’t matter to employees—reduces motivation. Organizations can apply this theory by offering relevant rewards, providing adequate resources, and ensuring transparent evaluation systems. When employees trust the process, their willingness to exert effort increases significantly.
