Expectancy theory
&
Equity theory
BY :- NIKITHA,HAVILAH,FAWAAZ,SIDDIQ,PIYUSH
EXPECTANCY THEORY
INTRODUCTION ORIGIN
The theory states that the intensity of a The expectancy theory was proposed
tendency to perform in a particular manner is by Victor Vroom of Yale School of
dependent on the intensity of an expectation
that the performance will be followed by a
Management in 1964. Vroom stresses
definite outcome and on the appeal of the and focuses on outcomes, and not on
outcome to the individual. needs unlike Maslow and Herzberg
EXPECTANCY THEORY
DEFINITION
The Expectancy theory states that
employee’s motivation is an outcome of how
much an individual wants a reward (Valence),
the assessment that the likelihood that the
effort will lead to expected performance
(Expectancy) and the belief that the
performance will lead to reward
(Instrumentality).
EXPECTANCY THEORY
FEATURES
Expectancy theory has three components:
expectancy, instrumentality, and valence.
Expectancy is the individual’s belief that effort
will lead to the intended performance goals..
Instrumentality is the belief that a person will
receive a desired outcome if the performance
expectation is met.
Valence is the unique value an
individual places on a particular outcome.
EXPECTANCY THEORY
ADVANTAGES LIMITATIONS
•The expectancy theory seems to be
•It is based on self-interest individual who want to
idealistic because quite a few individuals
achieve maximum satisfaction and who wants to
perceive high degree correlation between
minimize dissatisfaction.
performance and rewards.
•This theory stresses upon the expectations and
•The application of this theory is limited as
perception; what is real and actual is immaterial.
reward is not directly correlated with
•It emphasizes on rewards or pay-offs.
performance in many organizations. It is
•It focuses on psychological extravagance where
related to other parameters also such as
final objective of individual is to attain maximum
position, effort, responsibility, education,
pleasure and least pain.
etc.
EQUITY THEORY
INTRODUCTION DEFINITION
According to Equity Theory, in order to Adam's equity theory, aims to strike a
maximize individuals' rewards, we tend to balance between an employee’s input
create systems where resources can be fairly and output in a workplace. If the
divided amongst members of a group.
Inequalities in relationships will cause those
employee is able to find his or her
within it to be unhappy to a degree right balance it would lead to a more
proportional to the amount of inequality. productive relationship with the
management.
EQUITY THEORY
INPUT OUTCOMES
Inputs are defined as each participant’s Outputs are defined as the positive and
contributions to the relational exchange negative consequences that an individual
and are viewed as entitling him/her to perceives a participant has incurred as a
rewards or costs. The inputs that a consequence of his/her relationship with
participant contributes to a relationship another. When the ratio of inputs to
can be either assets – entitling him/her to outputs is close, then the employee
rewards – or liabilities - entitling him/her should have much satisfaction with their
to costs job.
EQUITY THEORY
ASSUMPTIONS
• The theory demonstrates that the individuals are concerned
both with their own rewards and also with what others get in
their comparison.
• Employees expect a fair and equitable return for their
contribution to their jobs.
• Employees decide what their equitable return should be after
comparing their inputs and outcomes with those of their
colleagues.
• Employees who perceive themselves as being in an
inequitable scenario will attempt to reduce the inequity either
by distorting inputs and/or outcomes psychologically, by
directly altering inputs and/or outputs, or by quitting the
organization.
EQUITY THEORY EXPECTANCY THEORY
• People derive job satisfaction by comparing
• People perform actions in exchange for their effort and reward ratio with others. If
rewards based on their conscious expectations. the ratio is fair or equitable, they feel
satisfied.
If the reward is fair with their expectation, they
are motivated. VS • motivation is a third-party construct where
employees compare the effort and reward
• Motivation is said to occur due to the personal ratio with others (peers, friends, neighbors,
effort and reward system. If the reward is etc.). If they feel the ratio is fair in line with
sufficient as per the perception of the others, only they are motivated. If not, they
employee, he / she is motivated. will face distress.
• External forces (third party) do not affect • external forces play a crucial role as
motivation. individuals are said to compare their rewards
with others in the society.
THANK YOU