Application of the Expectancy Theory

As Judge describes in Organizational Behavior, the Expectancy Theory, initially developed by Victor Vroom, proposes that an employee can be motivated to maximum levels of performance when a manager can match the organizational rewards to the personal goals. The personal goals are those that they are attractive to individual employees. In order to achieve this, Vroom examines the three key components and relationships that take place between the following aspects of the employer-employee relationship: individual effort, individual performance, organizational rewards, and personal goals.

The first component is the effort-performance relationship, or expectancy, which refers to the perception of an individual employee that they are able to exert the...