What is expectancy theory in business? What is management expectancy? What are expectations and vagueness? What is the function of expectations in management? These are just some of the questions that you might be interested in knowing more about if you are an MBA student preparing for a career in management or any kind of management position.
Impenetrable from other theories in business, expectancy theory maintains that there are three primary forces in an organization that determine the level of productivity and performance: motivation, skill, and the role of the manager. Motivation refers to the ability to reach or surpass an objective or target. Skill is related to the ability to coordinate the behavior of people, information and resources to attain a certain goal and the way in which they relate to each other. And the manager's role is to align the goals and the methods to achieving them with the resources, skills and people at their disposal.
One prominent theory in business, called the use theory, states that managers should be rewarded only for the results they produce and should not be rewarded for the initial investment of their time or money. The theory also states that no manager can be successfully motivated by simply getting a raise or a bonus. Managers should define expectancy theory for expanding their skills, but in a manner that is compatible with their personal goals. For example, an MBA student may use the reward system to learn new skills or increase his sales capabilities.
The third major theory in business is called the hierarchy theory, which is closely related to the use of the human psychological law of reciprocity. According to the hierarchy theory, there are certain behaviors that are mutually advantageous and those that are not. This theory postulates that if a manager behaves in an undesired way, he may indirectly lower the group's performance and indirectly increase the leader's own performance. For example, if the manager behaves violently and the employee knows that the manager is violent, the employee is motivated to behave in a more respectable manner, so as to avoid exposure to the manager's aggression. The theory therefore suggests that managers can be motivated by various forms of recognition, salary increases or perks, but they must be closely linked to their behavior in order to work effectively.
The fourth major in business is called the expectation theory, which is named after its creator, Mr. Milton Erickson. His theory is related to the concept of expectancy, which he discussed in his famous book, "The Psychological Theory of Expectations". His ideas were greatly influenced by his work in mathematics, and he came to the conclusion that people's expectations about the future are based on factual data that they have seen and observed. For example, if the future is full of suffering, the individual will expect that kind of future to occur. Thus, if a person sees the boss being aggressive and hostile towards him, he will expect that the same sort of thing will happen at his workplace too. By observing his reactions, the person will learn about the link between hostile bosses and the prediction of misery and will be able to avoid one and avoid the other.
The expectancy theory in business states that if you want to motivate people, you should base your expectations about the future on factual information they have seen and observed. You should then motivate them by telling them what they already know, but in a different way. In this way, the manager can both increase the actual likelihood of a favorable outcome, while simultaneously decreasing the perceived likelihood of an unfavorable outcome. For example, if the manager believes that a certain type of sales job will pay him very well, and that there is no reason why he should not get it, he should tell his employees this information and persuade them that it is a bad decision to accept a promotion to that job.
This will decrease the perceived likelihood of them quitting because they do not believe that they will earn as much money as the promotion will supposedly allow them to. On the other hand, if he knows that a promotion will likely make him miserable, his employees will have a much better motivation to stay with the company. To get a detailed overview of this topic, see here: https://en.wikipedia.org/wiki/Expectancy_theory.