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Self-Determination, Incentives and the Crowding Out Effect


Vroom considers the following product: valences, defined as affective orientations towards particular outcomes time the strength of the expectancies of their performance time the instrumentality that is the probability that good performances lead to rewards. This product is conceived as a measure of the force on a person to perform a particular act: the motivational force. The expectancy theory is often used to predict job satisfaction, one's occupational choice, the likelihood of staying in a job, and the effort one might expend from an individual at work. .
             Expectancy is the belief that one's effort will result in attainment of desired performance goals. The variables affecting individuals Ÿ expectancy probability are self-efficacy, i.e., a person's belief about his or her ability to perform a particular task successfully (see also below), goal difficulty, or perceived control over performance (e.g., many profit-sharing plans do not motivate employees working in large companies to increase their effort because they do not think that they have direct control over the profits of these companies). .
             Instrumentality is the belief that if one does meet performance expectations, he or she will receive a greater reward. This reward may come in the form of a pay increase, promotion, recognition or sense of accomplishment. The variables affecting individuals Ÿ instrumentality probability are trust, control (e.g., when workers do not trust their leaders, they often attempt to control the reward system through a contract or some other types of control mechanism) and reward policy (e.g., the degree to which pay and reward systems are formalized in written policies has an impact on the individuals' instrumentality perceptions). As a result, formalized policies linking rewards to the level of performance tend to increase instrumentality. Valence refers to the value the individual personally places on the rewards.


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