Expectancy Theory of Motivation

The three relationships of expectancy theory are about employee perception.

1. Effort-Performance Relationship (Expectancy): The employee's effort will lead to a desired performance, which is based on prior experience, perception of how difficult the performance goal is, and self-confidence.

2. Performance-Reward Relationship (Instrumentality): If the employee meets performance expectations they believe a reward will follow.

3. Reward-Personal Goals Relationship (Valence): Value the employee places on rewards for performance. Does the employee believe that the effort to meet goals is worth the reward?

The company would benefit from implementing a Tiered Performance Reward system for the employees. The company strives to produce the highest quality audio products on the market but they need to also strive to motivate employees to the highest level. I believe different level of reward tiers would help motivate the employees across the board.

The company has employees that do not think they have the hand dexterity capable of reaching of reaching the goal. If the company were to implement a tiered reward system with a lower tier goal, than these employees would attain the goal and confidence in their abilities will grow. If these employees can expect to reach the lower tier goal and obtain the reward they would then be motivated to reach the next tier. This is explained by Victor Vrooms Effort-Performance Relationship.

The company also has employees that can reach the current goal but not believe the reward is worth the effort as explained by Victor Vrooms Performance-Reward Relationship and Rewards-Personal Goals Relationship. If the company would implement the tiered reward system these employees would be motivated to not only hit the lower tiered reward but also the higher tiered reward. These employees would see the reward value as a positive instead of believing they are wasting their time.

Implementing the tiered reward system would increase productivity across all levels of the company using Victor Vroom Expectancy Theory of Motivation.