Briefly explain expectancy theory as it relates to organizational rewards.

Expectancy theory relates to employees' motivation. The theory suggests that for a reward to be motivational, three conditions must exist: the reward must have high valence (must be valued by employees); there must be high instrumentality (employees must trust that they will get the rewards if they perform the task); and there must be high expectancy (employees must have an expectancy that they can do the task).
The theory predicts that one's level of motivation depends on the attractiveness of the rewards sought and the probability of obtaining those rewards. Expectancy theory posits that employees will exert greater work effort if they have reason to expect that it will result in a reward that is valued. To motivate this effort, the value of any monetary reward should be attractive. Employees also must believe that good performance is valued by their employer and will result in their receiving the expected reward.