Vroom’s expectancy theory was one of the first ones to propose that individuals rationally weigh the relative attractiveness of all possible rewards and outcomes of an action. In addition, individuals also estimate the probability that performance and effort would lead to that desirable outcome. Vroom called them valence, instrumentality, and expectancy respectively.
The VIE theory (Valence, Expectancy, Instrumentality) theory is actually an elegant version of the path-goal theory of motivation. The path-goal theory claimed that if a worker viewed high productivity as a path to achieving a desirable goal (promotion, increased income, etc.), he or she would be motivated to produce more. This simple theory led to a dramatic shift in thinking about motivation: from person-as-machine to person-as-scientist.
VIE Theory
Vroom’s expectancy theory is known as VIE theory of motivation. The three elements of the VIE theory are:
- Valence
- Instrumentality
- Expectancy
Valance
In the field of chemistry, valence refers to the attracting or repelling force of an element. Similarly, in Vroom’s theory, valence refers to the strength of a person’s performance for a given outcome. Vroom argued that just like elements, psychological and physical objects, like satisfaction, money, etc., have attracting or repelling forces. For instance, money may be an attracting force for most people, whereas, frustration due to an abusive boss may be a repelling force.
Instrumentality
Instrumentality refers to the relationship between performance and the attainment of the promised reward. An employee may think that if he or she will receive an increase in compensation if they fulfill the target. Fulfilling a target would also involve working longer hours, more work responsibility, lesser time for family and leisure. Hence, several instrumentalities are involved in a single decision. The individual now behaves like a scientist and combines the information to decide whether the outcome would be more positive or more negative.
Expectancy
Expectancy refers to a person’s belief that increased effort will lead to the desired outcome. For instance, many people might believe that they would not be promoted despite working hard and achieving targets because their boss does not like them. In such a case, expectancy is low. On the other hand, if they believe that working longer hours would enable them to achieve their goal, expectancy would be high.
Put together, these three components make up the VIE theory. In simple terms, individuals ask themselves three questions:
- To what extent do I desire or value the outcomes?
- Is the expected outcome likely to yield other negative or positive outcomes?
- Is the action I am engaging in likely to lead to a desired outcome?
Implications for Managers
The VIE theory assumes individuals to be calculative scientists, who are constantly assessing the benefits associated with a particular task. Therefore, managers need to do the following to get the most out of their employees:
- They may consider connecting positively valued benefits to outcomes. For instance, they may announce positive rewards like praising good work and try to reduce delinquent behaviors like coming late by sending emails to employees who came late.
- They may consider explicitly clarifying the instrumentalities. While doing so they should specify all positive outcomes and make them lucrative for employees.
- They may clarify the expectancy by informing employees that action will definitely lead to an outcome. Managers should make sure to deliver the rewards and avoid making false promises.