1. The Model integrates much of what we know about motivation. Its basic foundation is the expectancy model.
2. Expectancy theory predicts that an employee will exert a high level of effort if he/she perceives that there is a strong relationship between effort and performance, performance and rewards, and rewards and satisfaction of personal goals.
3. Each of these relationships, in turn, is influenced by certain factors. For effort to lead to good performance, the individual must have the requisite ability to perform, and the performance appraisal system must be perceived as being fair and objective.
4. The final link in expectancy theory is the rewards-goals relationship.
5. ERG theory would come into play at this point. Motivation would be high to the degree that the rewards an individual received for his or her high performance satisfied the dominant needs consistent with his or her individual goals.
6. The model considers the achievement, need, reinforcement, and equity theories. High achievers are internally driven as long as the jobs they are doing provide them with personal responsibility, feedback, and moderate risks.
7. Reinforcement theory recognizes that the organization’s rewards reinforce the individual’s performance.
8. Individuals will compare the rewards (outcomes) they receive from the inputs they make with the outcome-input ratio of relevant others and inequities may influence the effort expended.