VROOM’S EXPECTANCY THEORY (VIE THEORY)
Vroom’s theory is based on
motivation process. According to Vroom people will be motivated to do things to
achieve some goals to the extent that they expect that certain action on their
part will help them to achieve the goal. Vroom’s model is built around the
concept of value, expectancy and force.

Expectancy theory characterizes people as rational being who think about
what they have to do to be recorded and how much the reward means to them
before they perform their job.
The theory doesn’t only focus on what people think. It also recognize
that these thoughts combine with other aspects of the organizational
environment to influence job performance.
Expectancy = The belief that one’s effort will
positively influence one’s performance. The probability that a particular
action will lead to the outcome. This is first level outcome. It may be high
performance.
Instrumentality = An individual’s belief regarding the
likelihood of being rewarded in accord with his/her own level of performance.
It is second level outcome. The second level output may e promotion as reward.
Therefore, the superior performance (1st level outcome) is being
instrumental in obtaining promotion (2nd level outcome).
Valence = The value a person places on the Reward he/she
expects to receive from the organization. It means the strength of an
individual’s preference to a particular outcome.
Expectancy Theory-
Another
factor in determining the motivation is expectancy i.e. the probability that a
particular action will lead to the outcome.
The theory
assists that motivation is based on peoples belief about the probability that
Effort will lead to Performance(Expectancy), Multiplied by probability that
Performance will lead to Reward(Instrumentality), multiplied by the perceived
value of the Reward(Valence).
Implication/Importance of the Theory:
1.
It recognizes individual difference
in work motivation & suggests that motivation is a complex process.
2.
It clarifies the relationship between
individual & organizational goals.
3.
It is consistent with management by
objective.
4.
It is consistent with the idea that a
manager’s job is to design an environment for performance.
This theory
seems to be a step in the right direction but does not provide manager
practical help solving his motivational problem.