Expectancy theory is a good starting point in learning how leaders can apply systematic explanations of motivation, for two major reasons. First, the theory is comprehensive: It incorporates and integrates features of other motivation theories, including goal theory and positive reinforcement. Second, it offers the leader many guidelines for triggering and sustaining constructive effort from group members.

Although not much research is conducted about expectancy theory nowadays, it remains a stable approach to understanding work motivation. In addition to being broad, the theory deals with cognition and process. The expectancy theory of motivation is based on the premise that the amount of effort people expend depends on how much reward they expect to get in return. Expectancy theory is cognitive because it emphasizes the thoughts, judgments, and desires of the person being motivated. It is a process theory because it attempts to explain how motivation takes place.

The theory is really a group of theories based on a rational, economic view of people. In any given situation, people want to maximize gain and minimize loss. The theory assumes that they choose among alternatives by selecting one they think they have the best chance of attaining. Furthermore, they choose the alternative that appears to have the biggest personal payoff. Given a choice, people will select the assignment they think they can handle the best and will benefit them the most.