INFLUENCE OF EXPECTANCY THEORY ON EMPLOYEES PERFORMANCE IN LAGOS STATE CHAPTER ONE

INFLUENCE OF EXPECTANCY THEORY ON EMPLOYEES PERFORMANCE IN LAGOS STATE CHAPTER ONE 1.1 Introduction In every organisation, the human resource is the most delicate and complex to manage and control. Most managers and human resource managers facing this dilemma, in order to effectively and efficiently manage their human resources or employees so as to maximize their performance on the job have taught to wise to seek refuge in Motivation. Motivation has been defined by many authors and scholars; Cole (1995) defined motivation as the term used to describe those processes, both instinctive and rational, by which people seek to satisfy the basic drives, perceived needs and personal goals which trigger human behaviour. Robbins and Judge (2007) also defined motivation as the processes that account for any individual s intensity, direction and persistence of effort towards attaining a goal; while general motivation is concerned with efforts towards any goal. They all agree that motivation involves those processes used to drive individuals towards achieving stated goals. However, one of the most Electronic copy available at: http://ssrn.com/abstract=1529246 1

widely accepted definitions or theories of motivation is that of Victor H. Vroom s Expectancy Theory (1964). Vroom s expectancy theory was an attempt to describe how an individuals motivation to achieve a particular goal or performance target can be explained in terms of what outcome would become beneficial to the individual as a result of achieving that goal and what value is placed on that outcome (Banjoko 2002). The theory explains how an individual perceives or understands the relationship between effort, performance and rewards. Vroom centred on those factors involved in stimulating or prompting an individual to put in more effort into something as this was the basis for motivation. He identified three factors each based on the individuals perception of the situation; they are: Expectancy: this refers to the extent to which the individual believes that a particular action will produce a particular result. Instrumentality: this refers to the extent to which the individual believes that effective performance will lead to desired results. Valence: this refers to the strength of the belief that those attractive rewards are actually available. Electronic copy available at: http://ssrn.com/abstract=1529246 2

These three factors according to Vroom combine and create a force which stimulates or motivates an individual to put in effort in order to achieve a level of performance and then obtain end rewards. He suggested that force or effort was a result of the multiple of expectancy and valence (encompassing instrumentality) in the formula: Force = Expectancy x Valence i.e. F = f (E x V) This formula can be used to indicate and predict things such as; job satisfaction, occupational choice, the likelihood of staying in a job, and effort that one might expend at work. 1.2 Statement of the Research Problem People differ in their attitudes, perception, performance as well as goal directed behaviour; what may be motivational to one individual may not be motivational to another as there is no hard and fast rule on how to motivate individuals especially in the work place. This has posed a major problem for managers and human resource managers, as they are constantly battling with how best to motivate their employees in order to stimulate the best behaviour as well as maximum performance in the work place. 3

However, different scholars and authors have come up with different theories and explanations on what motivates individuals and how best they can be motivated even in the work place; thereby giving managers and human resource managers more concern on which theory to adopt in order to motivate employees towards improved performance. 1.3 Purpose of the Research Study The general purpose of this research study will be to examine the influence of expectancy theory on employees performance in the Lagos metropolitan area of Nigeria. However, there are certain specific objectives which are set out to be achieved in the course of this study. They are: 1. To determine the role expectancy theory plays in motivating employees unto higher or increased performance. 2. To determine if expectancy theory accounts largely for employee motivation in Lagos state. 3. To determine how effective and efficient expectancy theory is in motivating employees in Lagos state. 4. To determine if expectancy theory is a proper tool for motivating employees unto higher or increased performance. 5. To determine the benefits of adopting expectancy theory as a tool for motivating employees. 4

1.4 Research Questions The research questions are as follows: 1. Does expectancy theory play any role in motivating employees in Lagos state? 2. Does expectancy theory account largely for employee motivation in Lagos state? 3. How effective and efficient is expectancy theory in motivating employees in Lagos state? 4. Is expectancy theory a proper tool for motivating employees unto higher or increased performance? 5. Are there any benefits to be derived from using expectancy theory as a tool for motivating employees in Lagos state? 1.5 Research Hypothesis The hypothesis of this study will be tested both statistically and analytically. However, the hypothesis can be divided into the Null Hypothesis (H 0 ) and the Alternate Hypothesis (H 1 ). Two hypotheses will be tested in this research study; they are stated below: Hypothesis 1 H 0 : Expectancy theory has an impact on the level of employees performance in Lagos state. H 1 : Expectancy theory does not have an impact on the level of employees performance in Lagos state. 5

Hypothesis 2 H 0 : Expectancy theory is an effective tool for motivating employees towards improved performance. H 1 : Expectancy theory is not an effective tool for motivating employees towards improved performance. 1.6 Significance of Study This research study is carried out to enlighten managers, would-be managers, human resource managers as well as employees on the influence of expectancy theory on employees performance and how it helps in improving, motivating or even discouraging employees in achieving the overall goals and objectives of the business organisation. It also portrays how expectancy theory can be used as a tool for the effective motivation of employees towards improved performance. 1.7 Scope of the Research Study The scope of this research study will cover business organisations and firms (whether large, medium or small scale) in the Lagos metropolitan area of Nigeria. This has been carefully selected with the view that Lagos state has the highest concentrate of both local and international industries in Nigeria. 6

1.8 Limitations of the Research Study The constraints or limitations likely to affect the research outcome are but not limited to the following: Biased result due to the limitation of the research work to Lagos state only. Inability to cover as much industries due to the vast geographical spread of Lagos state. Attitude of respondents. Time constrains. Financial constrains. Difficulty in sourcing for secondary data. However, the researcher is determined to overcome these constraints in order to come out with very successful results from the research study. 1.9 Definition of Terms Business: Any production activity engaged in aimed at providing goods and services to consumers at a profit and also serves as a means of livelihood. Business Organisation: Any going-concern which is also a legal entity that can sue and be sued; and is allowed to carry on business activities in its own name. Effectiveness: The process of producing results by doing the right things. 7

Efficiency: The process of producing maximum results with the least available resources by doing things right. Employees: This refers to the people aspect of the business organisation. It is the sum total of the human resources of any business organisation; they offer their skills, ideas, energy, time to the organisation in exchange for wages and salaries. Goals: These are the short term ends of the organisation which the organisation uses to achieve its long term objectives. Human Resource Manager: A person who plans for the human resource requirement of the organisation as well as the acquisition, utilisation, maintenance, compensation, integration and separation of human resource in an organisation. Manager: A person who gets things done through others by planning, organising, directing, staffing, leading, controlling, and coordinating the human resource as well as other resources of the organisation in order to achieve organisational goals and objectives. Objectives: These refer to the long term ends which the organisation wants to achieve within the course of its activities. Organisation: A consciously coordinated social unit composed of two or more people who function on a relatively continuous basis; and have agreed to come together in order to achieve a common goal or a set of goals. 8

Questionnaire (Please tick as appropriate) Section A Please tick ( ) accordingly in the boxes provided 1. Sex: Male ( ) Female ( ) 2. Age: 20-25 ( ) 26-30 ( ) 31-35 ( ) 36-40( ) 41-45 ( ) 46-50 ( ) Above 50 ( ) 3. Marital Status: Single ( ) Married ( ) Divorced ( ) Widow/er ( ) 4. Educational Qualification: WASC/GCE ( ) OND/NCE ( ) B.Sc/HND ( ) MBA/M.Sc ( ) Others ( ) Please specify Section B Please tick ( ) accordingly in the boxes provided SA - Strongly Agree A - Agree U - Undecided D - Disagree SD - Strongly Disagree S/N VIEWS SA A U D SD 5 Expectancy theory accounts largely for employee motivation in Lagos state 6 Expectancy theory plays a major role in motivating employees in Lagos state 7 Expectancy theory is an effective tool for motivating employees in Lagos state 8 Expectancy theory is a proper tool for motivating employees unto increased performance 61

9 Expectancy theory has an impact on the level of employees performance in Lagos state 10 There are benefits to be derived from using expectancy theory as a tool for motivating employees in Lagos state 11 I am motivated to work if I expect that hard work leads to increased performance 12 I am motivated to work if I expect that there are rewards available for increased performance 13 I am motivated to work if I value the rewards I expect are available for increased performance 14 I am motivated to work if I expect that rewards available for increased performance satisfy my needs 15 I am motivated to work in a job environment that I expect rewards performance 16 The level of satisfaction derived from the rewards determines how motivated I will be to work 17 I am motivated to work if I expect that the rewards adequately compensate performance 18 I am not motivated to work if I expect that there are no rewards for my efforts 19 I am not motivated to work if I expect that efforts and performance are not equitable 20 I am motivated to work in an organisation that understands the influence of expectancy theory and its impact on employees performance 62

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