Expectancy Theory

Expectancy Theory of Motivation

LET1

Jan-1st, 2013

WGU

Expectancy Theory of Motivation

There are three key concepts that construct the expectancy theory of motivation. First, effort performance relationship, this revolves around probability perceived by the individual that exerting a given amount of effort will lead to performance. Second, performance reward relationship, “it talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards” (Management Study Guide, 2012). Finally, rewards personal goals relationship, this part of theory focuses on what type of rewards a company offers its employees. It also takes into account the level of interest the company’s employees have regarding the organizational rewards and if they align with the employee’s personal goals.

The company outlined in this task has an issue with employees seeing no reason to improve their performance because they believe the rewards for doing so are insufficient. Management can counteract this perception by installing a production driven annual performance review. This company seems to already have a performance review system in place so they will need to increase the monetary reward for meeting performance standards. I would suggest increasing the salary reward to 4 or 5% of the employee’s current salary to offset the yearly 2 to 3% adjustment allotted for cost of living. This incentive should tackle the long term compensation concern employees have with the bonus not being worth the effort after taxes.

The company needs to tackle short term production goals; I believe this can be done by offer gift cards for exceeding weekly production rates. The gifts can be prepaid cards so employees have the option to use them any where they like. Management will need to tackle the issue with employees complaining about hand dexterity. This can be done by creating project team that consists of hourly employees, management,...