Expectancy TheoryEssay Preview: Expectancy TheoryReport this essayExpectancy theory was developed by Victor Vroom of Yale School of Management. Expectancy theory is related to the expectation that employees have from their employees. The expectancy theory of motivation has three components and relationships. The first component is the effect-performance relationship; where an employee works in order to give a good performance. The second component is the performance-reward relationship; where the employees perceive that by giving a high level of performance they will be rewarded. The third component of the theory is reward-personal goal relationship; where the employee is rewarded for the good work by the employer.
The effect performance relationship is primarily concerned with the implementing job rotation, job enlargement and job enrichment. These three methods are highly important because an employee needs newer things in his routine job and therefore it is highly important to constantly make these changes in order to increase the efficiency of his performance. Job rotation is primarily concerned with giving an employee another job usually at the same skill level. Job enlargement focuses on giving an employee increased amount of work with greater authority and responsibility to perform the tasks assigned. The last one, job enrichment is primarily concerned with giving an employee increased freedom in planning and execution the tasks assigned. This is the case when he is considered to have enough knowledge and ability that he can perform the task independently and does not require any such supervision.
Performance reward relationship is based on the fact that an employee must be involved in the decision making process of an organization. The three things which are involved in participative reward relationship are participative management, representative participation and quality circle. Participative management refers to the sharing of the decision making process by both employees and their supervisors. Representative participation refers to giving a representation to the employees on the board. Quality circle refers to the meetings of various employee groups and management to discuss the quality problems, recommend the solutions of the problems and to take appropriate corrective measures.
Reward personal goal relationship refers to the reward system that the organization sets up in order to recognize the efforts of the employees. There are two reward programs which are commonly used one is the variable pay program where as the other one being a skill based pay program. In the variable pay program the payment is based on the number of products made, merit based pay, employee share option scheme etc. In the skill based pay the remuneration to the employee is based on the number of skills that he has and the tasks that can be performed by him. This is one of the best way to encourage the employees to increase their set of skills so that they would be rewarded by the organization.
This simple method could be applied to a lot of different types of work and in this article of mine I am proposing the same approach with the reward system.
Why do you think employees like this system?
You’re saying, well the rewards system is really just to ensure that your employees get paid and thus you’re incentivized when they do. What are your thoughts?
I’d love to be able to offer an innovative and meaningful way to boost employee motivation without increasing performance. A pay scheme would be a great first step because in many cases a better way to encourage more employees to work. You see the other option in the following example from our video:
I really want to see what your members think about the concept of reward system in the workplace. I see no point in going further. You could use a system that rewards your employees with a lot more positive impact on the outcome of your company, even if the employees are less motivated.
Why would any organization want an incentive to improve employee quality in other ways, which would be important when your pay system is set up.
Because it would encourage more employees to think about their potential and create the incentive to get better.
Why doesn’t it involve making employees better off by offering a bonus to them instead?
Yes, this could be done under our reward incentives system. An incentive that awards a person some higher pay might provide them with the ability to do more well and they would be better off if they worked hard for it.
So why not let your organization set up reward systems for the members of the organization through their organization, for that they wouldn’t require a large pay or offer the ability to get better rewards.