Two of the best known approaches to work motivation are the expectancy theory introduced by Victor Vroom (1964) and the goal-setting theory introduced by Edwin A. Locke (1968). Both of these theories have garnered support from subsequent empirical research and have proved influential in how companies motivate their workers through incentive schemes and objective-setting exercises. As their original authors admitted, however, both also have some limitations and they also have contrasting implications in some respects. In particular, expectancy theory might suggest that setting very difficult goals may de-motivate workers who do not expect to be able to achieve them, while Locke’s theory would suggest that tough goals (‘stretch targets’) can lead to greater effort and so enhanced performance, even if the goals are not fully met.
In this essay I first describe in turn the key features of the two theories and then compare them in more detail. I then go on to suggest that the most useful theory is one that combines elements of both expectancy and goal-setting theory by showing how expectancy theory can help explain the level of commitment that workers have to particular goals, which is critical in determining how much effort they put in and so how they perform in practice.
Expectancy theory
Expectancy theory argues that motivation depends on personal beliefs of the worker about the probability that effort will lead to good performance and
That this in turn will lead to rewards that the worker value (Vroom) 1964. The theory predicts that worker will be a multiplicative combination of:
• Valence (anticipated satisfaction on receiving the reward)
• Instrumentality (Strength of belief that performance will lead to the reward.
• Expectancy (the belief that the effort will lead to the level of performance needed to achieve the reward)
Expectancy