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236 PART 4: THE LEADER AS A RELATIONSHIP BUILDER

Exhibit 8.6 Key Elements of Expectancy Theory

Will putting effort into
E P expectancy
the task lead to the
Effort Performance
desired performance?

Will high performance
P O expectancy
lead to the desired outcome?
Performance Outcomes

Are the available outcomes
Valence — value of outcomes
highly valued?
(pay, recognition, other rewards)

Motivation

Expectancy theory is based on the relationship among the individual’s effort,
the possibility of high performance, and the desirability of outcomes following high
performance. Exhibit 8.6 illustrates these elements and the relationships among
them. The E P expectancy is the probability that putting effort into a task will
lead to high performance. For this expectancy to be high, the individual must have
the ability, previous experience, and necessary tools, information, and opportunity
to perform. The P O expectancy involves whether successful performance
will lead to the desired outcome. If this expectancy is high, the indi-
Action Memo
vidual will be more highly motivated. Valence refers to the value of
outcomes to the individual. If the outcomes that are available from
As a leader, you can change follower
high effort and good performance are not valued by an employee,
behavior through the appropriate use of
motivation will be low. Likewise, if outcomes have a high value, mo-
rewards and punishments. To establish
tivation will be higher. A simple example to illustrate the relationships
new behaviors quickly, you can reinforce
in Exhibit 8.6 is Alfredo Torres, a salesperson at Diamond Gift Shop. If
the desired behavior after each and every
Alfredo believes that increased selling effort will lead to higher personal
occurrence. To sustain the behaviors over
sales, his E P expectancy would be considered high. Moreover, if he
a long time period, try reinforcing the
behaviors intermittently.
also believes that higher personal sales will lead to a promotion or pay
raise, the P O expectancy is also high. Finally, if Alfredo places a high
value on the promotion or pay raise, valence is high and he will be highly
motivated. For an employee to be highly motivated, all three factors in the
expectancy model must be high. 28
Like the path–goal theory of leadership described in Chapter 3, expectancy
theory is personalized to subordinates’ needs and goals. A leader’s responsibility
is to help followers meet their needs while attaining organizational goals. One
employee may want to be promoted to a position of increased responsibility, and
another may want a good relationship with peers. To increase motivation, leaders
can increase followers’ expectancy by clarifying individual needs, providing the de-
sired outcomes, and ensuring that individuals have the ability and support needed