Expectancy theory predicts employees will exert a high level of effort if they perceive a strong relationship between effort and performance, performance and rewards, and rewards and satisfaction of personal goals.

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Each of these relationships is, in turn, influenced by other factors. For effort to lead to good performance, the individual must have the ability to perform and perceive the performance appraisal system as fair and objective. The performance-reward relationship will be strong if the individual perceives that performance (rather than seniority, personal favorites, or other criteria) is rewarded.

Expectancy Theory Predicts Employees Will Exert a High Level of Effort