One process model of motivation, expectancy theory, will be discussed and applied in the context of compensation because it is the most useful (or practical) in understanding the relationship between compensation, rewards, and motivation. This discussion has been part of the book up to the 6th edition, but removed because some reviewers considered it as a repetition of material covered in OB courses. We offer it here as a supplement to show how Expectancy Theory applies specifically to the HR field.
The Expectancy Theory Model of Motivation
The expectancy theory model of motivation is probably the most practical and powerful tool for human resource managers to demonstrate to other managers the importance of all human resource functions in creating a motivating environment.1 If the expectancy theory model is operationalized and followed in an organization, there is a strong probability that its employees will be highly motivated. The theory even allows managers to use numbers to determine the strength of the motivation of their employees, although this is rarely done. The expectancy model discussed here was developed by Porter and Lawler (1973).
At the heart of the model are three components, as shown in Figure 1: the effort-performance probability (EP), the performance-outcome probability (PO), and the value of an outcome (V). Expectancy suggests that an employee’s productivity ultimately depends on his or her answers to three questions:
Figure 1
1. Given your abilities, experiences, self-confidence, and your understanding of your supervisor’s expectations, on a scale of zero to one, what is the probability—your gut feeling—that your effort will result in a superior performance? (Can I do it?)
2. On a scale from zero to one, how sure are you that when you do a good job your boss will reward you? (What is in it for me?)
3. Of what value is the outcome to you? (How much do I want it?)
The complete model is shown in Figure