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1. Employee needs. People have a set of needs they want to satisfy: (a) existence (biological and safety), (b) relatedness (affection, companionship, and influence), and  (c ) growth (achievement and self-actualization). These internal stimuli energize behavior.

2. Organizational incentives. Organizations have a set of rewards that can satisfy employee needs. These include: (a) subatantive rewards (pay, job security, and physical working conditions), (b) interactive rewards (co-workers, supervision, praises and recognition), and (c ) intrinsic rewards (accomplishment, challenge, and responsibility). These organizational factors influence the direction of behavior.

3. Percaptual outcomes. People develop a set of perceptions regardng: (a) the value of organizational rewards, (b) the relationship between performance and rewards, and (c ) the likehood that their efforts may result in task performance.

The second part of the model explains the process by which people make motivational choices and decisions. This process describes the motivational efforts involved in deciding to perform effectively. The specific element involved is:

4. Motivational efforts. If they have the ability and authority, people make motivational decisions based on how they perceive the value of rewards, the instrumental relayionship between performance and rewards, and the likehood of task accomplishment. Generally, positive perceptions lead to high motivation.

The last part of the model explains the outcomes of employee motivation. It shows the relationships among motivation, performance, rewards, employee satisfaction and organizational productivity. These key variables can be discribed as:

5. Performance levels. Performance is a function of ability and motivation. Ability determines what a person can do, while motivation determines what a person will do. Employee job performance influences organizational productivity, which in turn affects the levels of organizational rewards.

6. Rewards. Performance may be either rewarded or not rewarded. Equitable rewards lead to employee satisfaction; inequitable rewards or no rewards lead to dissatisfaction.

7. Satisfaction. The ammount of satisfaction modifies the type and intensity of employee needs. This modified need structure influences the individual's future behavior.

This conceptual model identifies a number of factors influencing employee motivation, satisfaction, and performance.

II.THE EXPECTANCY THEORY OF MOTIVATION

Expectancy theory explains the process by which people make motivational choices. According to this theory, people make motivational choices based on how they perceive (1) the value of rewards, (2) the instrumental relationship between performance and rewards, and (3) the chance of getting the job done.

The expectancy theory starts with the assumption that people are rational beings who want to maximize their gains in their goal-directed endeavors. Therefore, when they are faced with a number of behavioral options leading to need satisfaction, they will evaluate the potential outcomes of these options and select one that promises an optimal result. In evaluating these behavioral options, a rational person will analyze (1) the value of the rewards that the organization offers (valence), (2) the relationship between performance and rewards (instrumentality), and (3) the perceived chance of accomplishing the required task (expectancy). The tendency to act (motivation) is said to be a function of the valence (V), the instrumentality (I) and the expectancy (E). Using the initials of these three variables, expectancy theory is often called the VIE theory. Now let's discuss each of these key elements.

Valence of Rewards

Valence is a subjective value attached to an incentive of reward. People attach a valence to an incentive because they believe it satisfies some of their needs. Since it is subjective, people differ in the value they attach to a given incentive. For example, one person may attach a high value to a promotion, while another person can avoid it. The former may like it because it brings money and power, while the latter dislikes it because it means more responsibility or the headaches of dealing with other people's problems.

Also since it is subjective, managers have little control over the valences their employees attach to organizational incentives. However, managers can influence the valence if incentives by matching rewards to employee needs. Valence usually increases when (1) an employee has strong needs, (2) the incentive matches one or more needs, and (3) the size of the incentive is large enough to satisfy the aroused needs. For example, an employee will probably attach a high valence to money if (1) he or she has a strong economic need, (2) money used as an incentive, and (3) the size of the monetary incentive is sufficiently attractive.

Performance-Reward Instrumentality

Instrumentality refers to the ralationship between performance and raward. People ask, "Will I be rewarded if I perform the job well?" If the answer is affirmative, they will be motivated to exert an effort and increase the level of task performance. If the answer is negative, their motivational efforts will be reduced. As with valence, the measures of instrumentality can be positive or negative. If people perceive that their performance is generally rewarded, the perceived instrumentality  will be positive. If they perceive that performance does not make any difference to their rewards, or if poor performers are rewarded as much as or more than high performers, the instrumentality will be low.

Since perceived instrumentality is a subjective judgment, managers do not have direct control over it. But they can positively influence their subordinates' perception of the instrumental relationship by matching rewards to rerformance and by communicating this fact effectively to the subordinates. For example, managers can improve instrumentality by using performance-contingent pay systems such as piece rates, merit rates, or performance bonuses, and by managing such systems fairly.

Effort-Perfirmance Expectancy

Expectancy is the belief that effort leads to performance. It is a subjective feeling that people attach to the likehood of accomplishing a task. They may ask, "Can I perform and accomplish the task goal?" "How much effort would the task reqiure?" If they feel there is a close relationship between their effort and task accomplishment, expectancy will be favorable. However, if the task is too simple or too complex relative to their ability, then they may feel that their effort is not related to task performance.

Like other motivational concepts, expectancy is subjective; people attach varying expectancies to an outcome. A task may seem simple to some but not to others. A person's ability and personality influence his or her effort-performance expectancy. Competent and secure individuals tend to perceive expectancy more positively than incompetent and pessimistic individuals.

Managers have no direct control over how their employees perceive the chance of achieving an outcome or task, but they can influence the employee's expectancies positively by matching people to jobs. When people are matched with jobs, employees can utilize their job skills and energies effectively. Consequently, effort-performance expectancy will be increased.

III.DEVELOPING MOTIVATIONAL PRINCIPLES

Managers can improve the valence, instrumentality, and expectancy employees place in their job situations by (1) matching rewards to needs, (2) natching rewards to performance, and (3) matching job to employees.

The strength of expectancy theory lies in the fact that it accomodates three theories of individual behavior (needs, reinforcement, and perception) and that it can be operationalized. We have seen a set of motivational principles from expectancy theory and now I'll try to explain how these principles can be applied in organizational settings.

Matching Rewards to Employee Needs

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