Expectancy theory states that employees who are motivated by incentives will remain motivated and productive so long as the rewards meet their expectations.

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Expectancy theory states that employees who are motivated by incentives will remain motivated and productive provided rewards meet their expectations.
Key Takeaway: While this is simple, expectancy theory starts to become complex. What if a person is generally over-incentivized? It is much harder to motivate someone who is overpaid with what might seem fair to someone who is reasonably paid. That is why overpaying a long-term employee can be damaging to long-term productivity.

Expectancy Theory States That Employees Who Are Motivated by Incentives