Victor Vroom suggests that individuals choose to behave to ways that they believe will lead to the outcome they value. He stated that individuals have different set of goals and can be motivated if they believe that:
- There is a positive link between effort and performance.
- Favourable performance will result in a desirable reward.
- The reward will satisfy an important need.
- The desire to satisfy the need is strong enough to make the work effort worthwhile.
His expectancy theory is based on:
- Valence - The desire of employee for an extrinsic reward such as money, or an intrinsic reward such as satisfication.
- Expectancy - The degree to which people believe that putting effort into work will lead to a given level of performance.
- Instrumentality - The confidence of employees that they will actually get what they desire, even if it has been promised by the manager.