According to theory, sales employees compensated based on commissions should be more motivated than if paid a straight hourly wage because the commission emphasizes a clear instrumentality link between the employee’s performance and outcomes.

Expectancy Theory

Explanation:

The expectancy theory basically talks about how individuals will behave or react in a certain way because they are motivated and as a result choose to act in accordance or react to specific situations due to what they expect the results to be.

expectancy theory

Explanation:

The Expectancy theory states that employee is motivated by of how much an individual wants a reward, the chances that the effort will lead to an expected performance and the belief that the performance will lead to reward ( Expectancy is the faith that better efforts will result in better performance. Expectancy is i basically nfluenced by factors such as possession of appropriate skills for performing the job, availability of right resources, availability of crucial information and getting the required support for completing the job

Instrumentality iis confidence in the fact that if there is a good performance then a valid outcome achieved.

The expectancy theory concentrates on the following three relationships:

Effort-performance relationship: What is the likelihood that the indiviodual’s effort be recognized in his performance appraisal?

Performance-reward relationship: It talks about the extent to which the employee believes that getting a good performance appraisal leads to organizational rewards.

Rewards-personal goals relationship: It is all about the attractiveness or appeal of the potential reward to the individual.

Vroom was of the opinion that employees consciously decide whether to perform or not at the job. This decision sole dependence on the employee’s motivation level which in turn depends on three factors of expectancy, valence and instrumentality.

Definetly sales employees will likely be more motivated with a comission based on the fact that better effort will result in greater reward

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