Expectancy theory contains three basic components: valence, instrumentality, and expectancy. Because of these three components, the theory is often referred to as VIE theory. All three elements must be present for motivation to take place. To be motivated, people must value the reward, think they can perform, and have reasonable assurance that their performance will lead to a reward.

The worth or attractiveness of an outcome is referred to as valence. Each work situation has multiple outcomes. An outcome is anything that might stem from performance, such as a reward. Each outcome has a valence of its own. And each outcome can lead to other outcomes or consequences, referred to as second-level outcomes. A person who receives an outstanding performance evaluation (a first-level out-come) becomes eligible for a promotion (a second-level outcome). Second-level outcomes also have valences.

The sum of all the valences must be positive if the person is to work hard. If the sum of all of the valences is negative, the person might work hard to avoid the outcome. An individual’s assessment of the probability that performance will lead to certain outcomes is referred to as instrumentality. An individual’s assessment of the probability that effort will lead to correct performance of the task is referred to as expectancy. The importance of having high expectancies for motivation meshes well with the contribution of self-efficacy, the confidence in your ability to carry out a specific task.