Explain expectancy theory.

Answers will vary. Expectancy theory, sometimes referred to as VIE theory, is a fairly complex theory from a cognitive perspective because it casts an employee in the role of decision maker. It developed from early work in psychology, as well as basic economic theory, which assumes that people work to maximize their personal (positive) outcomes. Expectancy theory is concerned with three components and the links among them. The components are termed "effort," "performance," and "outcomes." The links among these three are more central to the theory. The first link is between effort and performance, and it is sometimes referred to as the "expectancy" term. Specifically, the effort-to-performance expectancy is a person's perception of the probability that an increase in effort will result in an increase in performance. The second link is between performance and outcomes and is sometimes referred to as the "instrumentality" term. Specifically, the performance-to-outcomes expectancy (instrumentality) is the person's perception of the probability that improved performance will lead to certain outcomes. The final piece of the model is not really a link between two other components but an extra component. Valence refers to how attractive or unattractive an outcome looks to a person.