Question

Please explain how incentive pay as a compensation strategy could serve as a motivator within the framework of expectancy theory. Finally, which of the core model constructs in expectancy do you believe is most likely to be influenced by an individual’s level of cognitive ability, and why?

Answer 1

Answer: As per the expectancy theory by Vroom considers that motivation is the function of the outcomes. As per the theory, the employees are motivated by how much doe he wants as a reward (valence) for some work. Their motivation also depends on their assessment of likelihood that the effort they will make will lead to an expected (Expectancy) level of performance and the faith that their performance will lead to reward (instrumentality). Incentives are given to an employee if his performance exceeds a certain level. The employee will therefore as per the expectancy theory will be motivated by the incentive if he feels that putting more efforts can help him in achieving the incentive. If he feels that his efforts will not result in the desired performance that is required for getting the incentive he will not be motivated. I feel that expectancy is the core model construct in this theory that is most influenced by the cognitive abilities of a person as our expectations are a direct outcome of our cognitive abilities.   We develop our expectations about things based on our understanding about the work and how it works.