Expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management in 1964. It suggests that 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. The theory states that the intensity of a tendency to perform in a particular manner is dependent on the intensity of an expectation that the performance will be followed by a definite outcome and on the appeal of the outcome to the individual.

Expectancy theory is about the mental processes regarding choice, or choosing. It explains the processes that an individual undergoes to make choices. The theory has three key components:

• Expectancy: This is the belief that ones effort will result in the intended performance goals. It is the persons belief that "I can do this," and is typically based on past experience, self-confidence level, and the perceived difficulty of the task.

• Instrumentality: This is the belief that if one performs well, then a valued outcome will be received. It is the belief that "If I do this, then that will happen".

• Valence: This is the value that an individual places on the expected outcome. It is the belief that "This outcome is important to me".

Expectancy theory emphasizes the need for organizations to relate rewards directly to performance and to ensure that the rewards provided are deserved and wanted by the recipients. When adhered to, expectancy theory can help managers better see how individuals are motivated by behavioral alternatives. Managers should use systems that link rewards to performance to strengthen the connection between the outcome and performance.

Advantages of the expectancy theory include that it is based on self-interest individuals who want to achieve maximum satisfaction and who want to minimize dissatisfaction. It stresses upon the expectations and perception, what is real and actual is immaterial. It emphasizes on rewards or pay-offs and focuses on psychological extravagance where the final objective of the individual is to attain maximum pleasure and least pain.

However, the expectancy theory seems to be idealistic because quite a few individuals perceive high degree of correlation between performance and rewards. The theory also does not consider the individual differences that exist between people.

References:

1. https://en.wikipedia.org/wiki/Expectancy_theory
2. https://www.sciencedirect.com/topics/social-sciences/expectancy-theory
3. https://www.managementstudyguide.com/expectancy-theory-motivation.htm
4. https://www.mindtools.com/a1h9cxv/expectancy-theory
5. https://www.indeed.com/career-advice/career-development/expectancy-theory-of-motivation
6. https://educationlibrary.org/expectancy-theory-of-motivation/