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Welcome To The Presentation Of Motivation
Introduction

Group Name- Pandemonium

Group Members:
Kaniz Fatima Irin------------------ID-10111101121-----Intake------23 rd
Fariha Ahmad----------------------ID-10111101092-----Intake------23 rd
Tarich Khalasi----------------------ID-10112101111-----Intake------24 th
Monira Kazal-----------------------ID-08092101218------Intake------18 th

Program-BBA

Bangladesh University of Business & Technology
Fariha Ahmad
ID-10111101092
Intake-23rd
Definition Of Motivation
The term motivation has been derived from
the word “Motive”, which means the urge to
do something or not to do something.
Motivation is to give reason, incentive,
enthusiasm, or interest that causes a specific
action or certain behavior. Motivation is
present in every life function. Simple acts
such as eating is motivated by hunger.
Education is motivated by desire for
knowledge. There are two main kinds of
motivation: intrinsic and extrinsic. Intrinsic
motivation is internal. It occurs when people
are compelled to do something out of
pleasure, importance, or desire. Extrinsic
motivation occurs when external factors
compel the person to do something.
Difference Between Motivation And Satisfaction
    Motivation and satisfaction are concepts that are much talked about in an
    organizational setup.



•    Motivation is what is believed to be behind the behavior or employees. It
    also regulates the performance levels. In an organizational setup,
    motivation could be anything from incentives, perks, promotion and even
    encouragement from the boss on completion of a given task.
•   Satisfaction is joy or pleasure of working and it is the sense of
    accomplishment after having done a job in a flawless manner. In fact,
    having done the job well is what brings satisfaction to most people. The
    pleasure or joy of doing a job is what is called as job satisfaction.
•   People continue with their jobs even when they have no job satisfaction as
    long as there is motivation in the form of good salary and perks.
Hierarchy Of Needs Theory
It was in 1943 a Psychologist Mr. Abraham
Harold Maslow suggested his Theory of
Human Motivation.
The Maslow's Pyramid of Human Needs is
explained below :-

1.Physiological Needs : Physiological
needs are the basic needs for sustaining
human life. These needs include food,
shelter, clothing, rest, air, water, sleep.
These basic human needs lie at the lowest
level in the hierarchy of needs as they have
priority over all other needs.

2. Security / Safety Needs : These are the
needs connected with the psychological fear
of loss of job, property, natural calamities or
hazards, etc. An employee wants protection
from such types of fear.
Hierarchy Of Needs Theory
 3. Social Needs : An employee is a human being is rightly treated as a
social animal. He desires to stay in group. He feels that he should belong to
one or the other group and the member of the group should accept him
with love and affection.

4. Esteem Needs : This category of needs include the need to be
respected by others, need to be appreciated by others, need to have power
and finally prestigious position. Once the previous needs are satisfied, a
person feels to be held in esteem both by himself and also by others.

5. Self-actualisation Needs : Here, a person feels that he should accomplish
something in his life. He wants to utilize his potentials to the maximum
extent and desires to become what one is capable of becoming. A person
desires to have challenges and achieves something special in his life or in
the area of his specialization.
ERG Theory
Clayton Paul Alderfer's ERG theory from 1969 condenses Maslow's five human
needs into three categories: Existence, Relatedness and Growth.
ERG Theory
•   Existence Needs
    Include all material and physiological desires (e.g., food, water, air,
    clothing, safety, physical love and affection).

•   Relatedness Needs
    Encompass social and external esteem; relationships with significant others
    like family, friends, co-workers and employers . This also means to be
    recognized and feel secure as part of a group or family.

•   Growth Needs
    Internal esteem and self actualization; these impel a person to make
    creative or productive effects on himself and the environment (e.g., to
    progress toward one's ideal self). This includes desires to be creative and
    productive, and to complete meaningful tasks.
Theory X And Theory Y
In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two
theories by which to view employee motivation. He avoided descriptive labels and
simply called the theories Theory X and Theory Y.
Theory X And Theory Y
     Theory X assumes that the average person:
•   Dislikes work and attempts to avoid it.
•   Has no ambition, wants no responsibility, and would rather follow than lead.
•   Is self-centered and therefore does not care about organizational goals.
•   Resists change.
•   Is gullible and not particularly intelligent.
•   Essentially, Theory X assumes that people work only for money and security.

•   Theory Y makes the following general assumptions:
•   Work can be as natural as play and rest.
•   People will be self-directed to meet their work objectives if they are committed to
    them.
•   People will be committed to their objectives if rewards are in place that address
    higher needs such as self-fulfillment.
•   Under these conditions, people will seek responsibility.
•   Most people can handle responsibility because creativity and ingenuity are
    common in the population.
Kaniz Fatima Irin
ID-10111101121
Intake-23rd
Two-Factor Theory

In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor
theory or the motivator-hygiene theory. According to Herzberg, there are
some job factors that result in satisfaction while there are other job factors
that prevent dissatisfaction.



Hygiene factors- Hygiene factors are those job factors which are essential
for existence of motivation at workplace. These do not lead to positive
satisfaction for long-term. But if these factors are absent / if these factors are
non-existant at workplace, then they lead to dissatisfaction. In other words,
hygiene factors are those factors which when adequate / reasonable in a job,
pacify the employees and do not make them dissatisfied.
Two-Factor Theory

Motivational factors- According
to Herzberg, the hygiene factors
cannot be regarded as motivators.
The motivational factors yield
positive satisfaction. These factors
are inherent to work. These
factors motivate the employees for
a superior performance. They are
called satisfiers. These are factors
involved in performing the job.
Examples of Hygiene factors and
Motivational factors are shown
on the right side of this slide.
McClelland’s Theory Of Needs
In his acquired-needs theory, David McClelland proposed that an individual's
 specific needs are acquired over time and are shaped by one's life experiences.
 Most of these needs can be classed as either achievement, affiliation, or power.

The need for achievement (n-ach)
The n-ach person is 'achievement motivated' and therefore seeks achievement,
attainment of realistic but challenging goals, and advancement in the job.

The need for authority and power (n-pow)
 The n-pow person is 'authority motivated'. This driver produces a need to be
influential, effective and to make an impact. their ideas to prevail. There is also
motivation and need towards increasing personal status and prestige.

The need for affiliation (n-affil)
The n-affil person is 'affiliation motivated', and has a need for friendly relationships
and is motivated towards interaction with other people.
Goal-Setting Theory
The famous goal setting theory was put forward by Dr Edwin Locke in the
late 1960s. It is widely recognized as the most valid and useful motivation
theories. Today, we all use it and set our goals. Not only company and
organizations use it, we use it in our lives too.

1. Goals should be specific
Goals such as "Become a top sales" or "Sell as many products as I can" are
too vague and therefore have no effect on motivation. Instead, one should
set more specific goals. Specific means quantitative. For example, one may
set a goal such as "sell 500 products per month". This is a specific target. If
one uses the specific result as a source of motivation and she/he will
perform better.
Goal-Setting Theory
2. Goals Should Be Challenging
 Make each goal a challenge . If the goal can be easily achieved, without
difficulty, it is not very motivational. Hard goals are more motivating than
easy goals, because when a goal is challenging, a person will try best and
generate enough enthusiasm to get it done. When the goal has been
accomplished, the person will feel very happy and will get high rewards
too.

3. Goals should be achievable
Goals can't be unattainable, of course. If the goals are not realistic to
achieve, people may lose confidence in the end. So when goal is set,
people have to make sure that they can achieve it. The goal should be
challenging and difficult, and people should believe that they can achieve it
too. When developing goals, people have to make sure the goals are not
only specific, challenging, and achievable, but also are measurable and
have a target date for attainment.
Tarich Khalasi
ID-10112101111
Intake-24th
Self-Efficacy Theory
The concept of self-efficacy lies at the center of psychologist Albert Bandura’s
social cognitive theory. According to Albert Bandura, self-efficacy is "the belief in
one’s capabilities to organize and execute the courses of action required to manage
prospective situations.“
The Role of Self-Efficacy:
Bandura and others have found that an individual’s self-efficacy plays a major role
in how goals, tasks, and challenges are approached.
People with a strong sense of self-efficacy:
View challenging problems as tasks to be mastered
Develop deeper interest in the activities in which they participate
Form a stronger sense of commitment to their interests and activities
Recover quickly from setbacks and disappointments
People with a weak sense of self-efficacy:
Avoid challenging tasks
Believe that difficult tasks and situations are beyond their capabilities
Focus on personal failings and negative outcomes and quickly lose confidence in
personal abilities.
Self-Efficacy Theory
Sources of Self-Efficacy:

1. Mastery Experiences:
   Performing a task successfully strengthens our sense of self-efficacy. However, failing
    to adequately deal with a task or challenge can undermine and weaken self-efficacy.

2. Social Modeling:
   Witnessing other people successfully completing a task is another important source of
   self-efficacy, which is called social modeling.

3. Social Persuasion:
   Getting verbal encouragement from others helps people overcome self-doubt and instead
    focus on giving their best effort to the task at hand.
Reinforcement Theory
Reinforcement theory of motivation was proposed by BF Skinner and his
associates. It states that individual’s behavior is a function of its
consequences. It is based on “law of effect”, i.e., individual’s behavior
with positive consequences tends to be repeated, but individual’s behavior
with negative consequences tends not to be repeated.
Reinforcement theory of motivation overlooks the internal state of
individual, i.e., the inner feelings and drives of individuals are ignored by
Skinner. This theory focuses totally on what happens to an individual when
he takes some action. Thus, according to Skinner, the external environment
of the organization must be designed effectively and positively so as to
motivate the employee. This theory is a strong tool for analyzing
controlling mechanism for individual’s behavior. However, it does not
focus on the causes of individual’s behavior.
Reinforcement Theory

The managers use the following methods for controlling the behavior of the
employees:
Positive Reinforcement- This implies giving a positive response when an
individual shows positive and required behavior. For example - Immediately
praising an employee for coming early for job. This will increase probability of
outstanding behavior occurring again.
Negative Reinforcement- This implies rewarding an employee by removing
negative / undesirable consequences.
Punishment- It implies removing positive consequences so as to lower the
probability of repeating undesirable behavior in future. In other words, punishment
means applying undesirable consequence for showing undesirable behavior.
Extinction- It implies absence of reinforcements. In other words, extinction
implies lowering the probability of undesired behavior by removing reward
for that kind of behavior
Monira Kazal
ID-08092101218
Intake-18th
Equity Theory
Psychologist John Stacey Adams put forward his equity theory model in 1962. The
theory deals with one's own perception.

The core of the equity theory is the principle of balance or equity. As per this
motivation theory, an individual’s motivation level is correlated to his perception of
equity, fairness and justice practiced by the management. Higher is individual’s
perception of fairness, greater is the motivation level and vice versa. While
evaluating fairness, employee compares the job input (in terms of contribution) to
outcome (in terms of compensation) and also compares the same with that of
another peer of equal cadre/category. D/I ratio (output-input ratio) is used to make
such a comparison.
This can be illustrated by the following equation:
Equity Theory
Negative Tension state: Equity is perceived when this ratio is equal. While if this
ratio is unequal, it leads to “equity tension”. J.Stacy Adams called this a negative
tension state which motivates him to do something right to relieve this tension. A
comparison has been made between 2 workers A and B to understand this point.

 Referents: The four comparisons an employee can make have been termed as
“referents”. The referent chosen is a significant variable in equity theory. These
referents are as follows:
 Self-inside: An employee’s experience in a different position inside his present
organization.
 Self-outside: An employee’s experience in a situation outside the present
organization.
 Other-inside: Another employee or group of employees inside the employee’s
present organization.
 Other-outside: Another employee or employees outside the employee’s present
organization.
Expectancy Theory

The expectancy theory was proposed by Victor Vroom of Yale School of
Management in 1964.
 The Expectancy theory states that employee’s motivation is an outcome
of how much an individual wants a reward (Valence), the assessment that
the likelihood that the effort will lead to expected performance
(Expectancy) and the belief that the performance will lead to reward
(Instrumentality). In short, Valence is the significance associated by an
individual about the expected outcome. It is an expectation and not the
actual satisfaction that an employee expects to receive after achieving the
goals. Expectancy is the faith that better efforts will result in better
performance. Expectancy is influenced 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.
Expectancy Theory
Instrumentality is the faith that if a person performs well, then a valid outcome
will be there. Instrumentality is affected by factors such as believe in the people
who decide who receives what outcome, the simplicity of the process deciding who
gets what outcome, and clarity of relationship between performance and outcomes.
Thus, the expectancy theory concentrates on the following three relationships:
Effort-performance relationship: What is the likelihood that the individual’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 view that employees consciously decide whether to perform or not at
the job. This decision solely depended on the employee’s motivation level which in
turn depends on three factors of expectancy, valence and instrumentality.
Thank You!

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Motivation

  • 1. Welcome To The Presentation Of Motivation
  • 2. Introduction Group Name- Pandemonium Group Members: Kaniz Fatima Irin------------------ID-10111101121-----Intake------23 rd Fariha Ahmad----------------------ID-10111101092-----Intake------23 rd Tarich Khalasi----------------------ID-10112101111-----Intake------24 th Monira Kazal-----------------------ID-08092101218------Intake------18 th Program-BBA Bangladesh University of Business & Technology
  • 4. Definition Of Motivation The term motivation has been derived from the word “Motive”, which means the urge to do something or not to do something. Motivation is to give reason, incentive, enthusiasm, or interest that causes a specific action or certain behavior. Motivation is present in every life function. Simple acts such as eating is motivated by hunger. Education is motivated by desire for knowledge. There are two main kinds of motivation: intrinsic and extrinsic. Intrinsic motivation is internal. It occurs when people are compelled to do something out of pleasure, importance, or desire. Extrinsic motivation occurs when external factors compel the person to do something.
  • 5. Difference Between Motivation And Satisfaction Motivation and satisfaction are concepts that are much talked about in an organizational setup. • Motivation is what is believed to be behind the behavior or employees. It also regulates the performance levels. In an organizational setup, motivation could be anything from incentives, perks, promotion and even encouragement from the boss on completion of a given task. • Satisfaction is joy or pleasure of working and it is the sense of accomplishment after having done a job in a flawless manner. In fact, having done the job well is what brings satisfaction to most people. The pleasure or joy of doing a job is what is called as job satisfaction. • People continue with their jobs even when they have no job satisfaction as long as there is motivation in the form of good salary and perks.
  • 6. Hierarchy Of Needs Theory It was in 1943 a Psychologist Mr. Abraham Harold Maslow suggested his Theory of Human Motivation. The Maslow's Pyramid of Human Needs is explained below :- 1.Physiological Needs : Physiological needs are the basic needs for sustaining human life. These needs include food, shelter, clothing, rest, air, water, sleep. These basic human needs lie at the lowest level in the hierarchy of needs as they have priority over all other needs. 2. Security / Safety Needs : These are the needs connected with the psychological fear of loss of job, property, natural calamities or hazards, etc. An employee wants protection from such types of fear.
  • 7. Hierarchy Of Needs Theory 3. Social Needs : An employee is a human being is rightly treated as a social animal. He desires to stay in group. He feels that he should belong to one or the other group and the member of the group should accept him with love and affection. 4. Esteem Needs : This category of needs include the need to be respected by others, need to be appreciated by others, need to have power and finally prestigious position. Once the previous needs are satisfied, a person feels to be held in esteem both by himself and also by others. 5. Self-actualisation Needs : Here, a person feels that he should accomplish something in his life. He wants to utilize his potentials to the maximum extent and desires to become what one is capable of becoming. A person desires to have challenges and achieves something special in his life or in the area of his specialization.
  • 8. ERG Theory Clayton Paul Alderfer's ERG theory from 1969 condenses Maslow's five human needs into three categories: Existence, Relatedness and Growth.
  • 9. ERG Theory • Existence Needs Include all material and physiological desires (e.g., food, water, air, clothing, safety, physical love and affection). • Relatedness Needs Encompass social and external esteem; relationships with significant others like family, friends, co-workers and employers . This also means to be recognized and feel secure as part of a group or family. • Growth Needs Internal esteem and self actualization; these impel a person to make creative or productive effects on himself and the environment (e.g., to progress toward one's ideal self). This includes desires to be creative and productive, and to complete meaningful tasks.
  • 10. Theory X And Theory Y In his 1960 book, The Human Side of Enterprise, Douglas McGregor proposed two theories by which to view employee motivation. He avoided descriptive labels and simply called the theories Theory X and Theory Y.
  • 11. Theory X And Theory Y Theory X assumes that the average person: • Dislikes work and attempts to avoid it. • Has no ambition, wants no responsibility, and would rather follow than lead. • Is self-centered and therefore does not care about organizational goals. • Resists change. • Is gullible and not particularly intelligent. • Essentially, Theory X assumes that people work only for money and security. • Theory Y makes the following general assumptions: • Work can be as natural as play and rest. • People will be self-directed to meet their work objectives if they are committed to them. • People will be committed to their objectives if rewards are in place that address higher needs such as self-fulfillment. • Under these conditions, people will seek responsibility. • Most people can handle responsibility because creativity and ingenuity are common in the population.
  • 13. Two-Factor Theory In 1959, Frederick Herzberg, a behavioral scientist proposed a two-factor theory or the motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. Hygiene factors- Hygiene factors are those job factors which are essential for existence of motivation at workplace. These do not lead to positive satisfaction for long-term. But if these factors are absent / if these factors are non-existant at workplace, then they lead to dissatisfaction. In other words, hygiene factors are those factors which when adequate / reasonable in a job, pacify the employees and do not make them dissatisfied.
  • 14. Two-Factor Theory Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as motivators. The motivational factors yield positive satisfaction. These factors are inherent to work. These factors motivate the employees for a superior performance. They are called satisfiers. These are factors involved in performing the job. Examples of Hygiene factors and Motivational factors are shown on the right side of this slide.
  • 15. McClelland’s Theory Of Needs In his acquired-needs theory, David McClelland proposed that an individual's specific needs are acquired over time and are shaped by one's life experiences. Most of these needs can be classed as either achievement, affiliation, or power. The need for achievement (n-ach) The n-ach person is 'achievement motivated' and therefore seeks achievement, attainment of realistic but challenging goals, and advancement in the job. The need for authority and power (n-pow) The n-pow person is 'authority motivated'. This driver produces a need to be influential, effective and to make an impact. their ideas to prevail. There is also motivation and need towards increasing personal status and prestige. The need for affiliation (n-affil) The n-affil person is 'affiliation motivated', and has a need for friendly relationships and is motivated towards interaction with other people.
  • 16. Goal-Setting Theory The famous goal setting theory was put forward by Dr Edwin Locke in the late 1960s. It is widely recognized as the most valid and useful motivation theories. Today, we all use it and set our goals. Not only company and organizations use it, we use it in our lives too. 1. Goals should be specific Goals such as "Become a top sales" or "Sell as many products as I can" are too vague and therefore have no effect on motivation. Instead, one should set more specific goals. Specific means quantitative. For example, one may set a goal such as "sell 500 products per month". This is a specific target. If one uses the specific result as a source of motivation and she/he will perform better.
  • 17. Goal-Setting Theory 2. Goals Should Be Challenging Make each goal a challenge . If the goal can be easily achieved, without difficulty, it is not very motivational. Hard goals are more motivating than easy goals, because when a goal is challenging, a person will try best and generate enough enthusiasm to get it done. When the goal has been accomplished, the person will feel very happy and will get high rewards too. 3. Goals should be achievable Goals can't be unattainable, of course. If the goals are not realistic to achieve, people may lose confidence in the end. So when goal is set, people have to make sure that they can achieve it. The goal should be challenging and difficult, and people should believe that they can achieve it too. When developing goals, people have to make sure the goals are not only specific, challenging, and achievable, but also are measurable and have a target date for attainment.
  • 19. Self-Efficacy Theory The concept of self-efficacy lies at the center of psychologist Albert Bandura’s social cognitive theory. According to Albert Bandura, self-efficacy is "the belief in one’s capabilities to organize and execute the courses of action required to manage prospective situations.“ The Role of Self-Efficacy: Bandura and others have found that an individual’s self-efficacy plays a major role in how goals, tasks, and challenges are approached. People with a strong sense of self-efficacy: View challenging problems as tasks to be mastered Develop deeper interest in the activities in which they participate Form a stronger sense of commitment to their interests and activities Recover quickly from setbacks and disappointments People with a weak sense of self-efficacy: Avoid challenging tasks Believe that difficult tasks and situations are beyond their capabilities Focus on personal failings and negative outcomes and quickly lose confidence in personal abilities.
  • 20. Self-Efficacy Theory Sources of Self-Efficacy: 1. Mastery Experiences: Performing a task successfully strengthens our sense of self-efficacy. However, failing to adequately deal with a task or challenge can undermine and weaken self-efficacy. 2. Social Modeling: Witnessing other people successfully completing a task is another important source of self-efficacy, which is called social modeling. 3. Social Persuasion: Getting verbal encouragement from others helps people overcome self-doubt and instead focus on giving their best effort to the task at hand.
  • 21. Reinforcement Theory Reinforcement theory of motivation was proposed by BF Skinner and his associates. It states that individual’s behavior is a function of its consequences. It is based on “law of effect”, i.e., individual’s behavior with positive consequences tends to be repeated, but individual’s behavior with negative consequences tends not to be repeated. Reinforcement theory of motivation overlooks the internal state of individual, i.e., the inner feelings and drives of individuals are ignored by Skinner. This theory focuses totally on what happens to an individual when he takes some action. Thus, according to Skinner, the external environment of the organization must be designed effectively and positively so as to motivate the employee. This theory is a strong tool for analyzing controlling mechanism for individual’s behavior. However, it does not focus on the causes of individual’s behavior.
  • 22. Reinforcement Theory The managers use the following methods for controlling the behavior of the employees: Positive Reinforcement- This implies giving a positive response when an individual shows positive and required behavior. For example - Immediately praising an employee for coming early for job. This will increase probability of outstanding behavior occurring again. Negative Reinforcement- This implies rewarding an employee by removing negative / undesirable consequences. Punishment- It implies removing positive consequences so as to lower the probability of repeating undesirable behavior in future. In other words, punishment means applying undesirable consequence for showing undesirable behavior. Extinction- It implies absence of reinforcements. In other words, extinction implies lowering the probability of undesired behavior by removing reward for that kind of behavior
  • 24. Equity Theory Psychologist John Stacey Adams put forward his equity theory model in 1962. The theory deals with one's own perception. The core of the equity theory is the principle of balance or equity. As per this motivation theory, an individual’s motivation level is correlated to his perception of equity, fairness and justice practiced by the management. Higher is individual’s perception of fairness, greater is the motivation level and vice versa. While evaluating fairness, employee compares the job input (in terms of contribution) to outcome (in terms of compensation) and also compares the same with that of another peer of equal cadre/category. D/I ratio (output-input ratio) is used to make such a comparison. This can be illustrated by the following equation:
  • 25. Equity Theory Negative Tension state: Equity is perceived when this ratio is equal. While if this ratio is unequal, it leads to “equity tension”. J.Stacy Adams called this a negative tension state which motivates him to do something right to relieve this tension. A comparison has been made between 2 workers A and B to understand this point. Referents: The four comparisons an employee can make have been termed as “referents”. The referent chosen is a significant variable in equity theory. These referents are as follows: Self-inside: An employee’s experience in a different position inside his present organization. Self-outside: An employee’s experience in a situation outside the present organization. Other-inside: Another employee or group of employees inside the employee’s present organization. Other-outside: Another employee or employees outside the employee’s present organization.
  • 26. Expectancy Theory The expectancy theory was proposed by Victor Vroom of Yale School of Management in 1964. The Expectancy theory states that employee’s motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to reward (Instrumentality). In short, Valence is the significance associated by an individual about the expected outcome. It is an expectation and not the actual satisfaction that an employee expects to receive after achieving the goals. Expectancy is the faith that better efforts will result in better performance. Expectancy is influenced 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.
  • 27. Expectancy Theory Instrumentality is the faith that if a person performs well, then a valid outcome will be there. Instrumentality is affected by factors such as believe in the people who decide who receives what outcome, the simplicity of the process deciding who gets what outcome, and clarity of relationship between performance and outcomes. Thus, the expectancy theory concentrates on the following three relationships: Effort-performance relationship: What is the likelihood that the individual’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 view that employees consciously decide whether to perform or not at the job. This decision solely depended on the employee’s motivation level which in turn depends on three factors of expectancy, valence and instrumentality.