ABC Corp. introduced a training program that ensured everyone had the required knowledge and skills to perform the work. The company also brought in a performance-based reward system that accurately identified employees who performed better than others. According to expectancy theory, these practices improve employee motivation by:

The first action improves employee motivation by improving his / her Expectancy while the second action improves his / her motivation by improving the Instrumentality

Explanation:

According to The Expectancy Theory there are four variables that matter for his/her motivation:

Individual effort Individual performance Organizational rewards/work outcomes Personal goals

and there are three relationships that are linked to this four variables

Expectancy: That relates effort with performance. This relationship explains the subjective probability of the effort resulting in an outcome (first level of outcome). The training program introduced by ABC Corp tries to ensure that every one can perform the work assigned, so their effort will improve their performance.

Instrumentality : that relates performance and rewards/work Outcomes. The instrumentality is the perception of an employee of the probability that performance will lead to organizational rewards or outcomes like superior salary, bonuses, promotion etc. This is the relationship that ABC Corp is using to increase motivation by implementing the performance-based reward system.

Valence: The valence measures the attractiveness or the value of the rewards or work outcomes for the employee. Its value can be positive or negative depending on the outcome