Expectancy theory explains the behavioral process of why individuals choose one behavioral option over another. It also explains how they make decisions to achieve the result they desire. Vroom introduces three variables within his expectancy theory: valence (V), expectancy (E), and instrumentality (I). These three elements also have clearly defined relationships: effort-performance expectancy (E>P expectancy), performance-outcome expectancy (P>O expectancy).
The three components of expectancy theory (Expectancy, Instrumentality, and Valence) fit together in this fashion:
•1. Expectancy: Effort → Performance (E→P)
•2. Instrumentality: Performance → Outcome (P→O)
•3. Valence - V(R)