Convenience

performance-
to-outcome
expectancy
The individual’s
perception that
performance will
lead to a specific
outcome
outcomes
Consequences of
behaviors in an
organizational
setting, usually
rewards
valence
An index of how
much an individual
values a particular
outcome; the
attractiveness of the
outcome to the
individual
300
Part 4:
Leading
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a negative valence. For a different employee, one with a low need for achievement and a
high need for affiliation, the pay raise, promotions, and praise might all have positive
valences, whereas both resentment and stress could have negative valences.
For motivated behavior to occur, three conditions must be met. First, the effort-
to-performance must be greater than 0 (the individual must believe that if effort is
expended, high performance will result). The performance-to-outcome expectancy must
also be greater than 0 (the individual must believe that if high performance is achieved,
certain outcomes will follow). And the sum of the valences for the outcomes must be
greater than 0. (One or more outcomes may have negative valences if they are more
than offset by the positive valences of other outcomes. For example, the attractiveness
of a pay raise, a promotion, and praise from the boss may outweigh the unattractiveness
of more stress and resentment from coworkers.) Expectancy theory suggests that when
these conditions are met, the individual is motivated to expend effort.
Starbucks credits its unique stock ownership program with maintaining a dedicated
and motivated workforce. Based on the fundamental concepts of expectancy theory,
Starbucks employees earn stock as a function of their seniority and performance. Thus,
their hard work helps them earn shares of ownership in the company.
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