Expectancy Theory, developed by Victor Vroom, is a motivation theory that proposes an individual will behave or act in a certain way because they are motivated to select a specific behavior over others due to what they expect the result of that selected behavior will be. In essence, motivation is the product of three factors: Expectancy, Instrumentality, and Valence.
Key Aspects of Expectancy Theory
- Cognitive Process – It suggests that individuals are rational decision-makers who think about the likely outcomes of their actions before deciding how to behave.
- Individualized – It recognizes that motivation is unique to each individual, as different people place different values on the same rewards.
- Focus on Perception – The theory is based on an individual’s perception of the link between effort, performance, and reward, not necessarily the objective reality.
- Multiplicative Formula – If any of the three key factors is zero, the overall motivation will be zero.
The Motivation Formula (Motivation = E x I x V)
| Factor | Description | Key Question | 
|---|---|---|
| Expectancy (E) | The belief that one’s effort will result in the attainment of desired performance goals. | ”If I work harder, can I achieve the target?” | 
| Instrumentality (I) | The belief that a person will receive a reward if the performance expectation is met. | ”If I achieve the target, will I actually get the reward?” | 
| Valence (V) | The value an individual places on the reward of an outcome. | ”How much do I actually care about this reward?” | 
Example Scenarios
High Motivation Scenario
A project manager offers a $1,000 bonus for finishing a critical task by Friday. A senior developer believes they have the skills to finish the task (high Expectancy). They trust the project manager to pay the bonus as promised (high Instrumentality). The developer is saving for a vacation and highly values the extra money (high Valence). Their motivation to complete the task is very high.
Low Motivation Scenario
The same bonus is offered. A junior developer feels they lack the skills to finish by Friday, no matter how hard they work (low Expectancy). Even if they did finish, they’ve heard that the company often delays bonus payments (low Instrumentality). Their motivation is zero, and they will likely not even try for the bonus.
Why Expectancy Theory Matters
- Provides a Clear Framework – It gives leaders a structured way to diagnose motivational problems by analyzing each of the three components.
- Highlights the Need for Clarity – It forces managers to create clear and transparent links between the effort they expect, the performance they require, and the rewards they promise.
- Emphasizes Individual Needs – It reminds leaders that a “one-size-fits-all” reward system is often ineffective; rewards must be tailored to what individuals value.
- Ensures Realistic Goals – To ensure high expectancy, project managers must set challenging but achievable goals and provide the necessary training and support.
See also: Theory X and Theory Y, [motivation.md | [Motivation]], Leadership, Herzberg’s Two-Factor Theory.