Porter-Lawler expectancy theory

Porter-Lawler’s theory believes it is not job satisfaction that leads to better performance but job performance (increased production or sales) leads to job satisfaction. The theory asserts that an individual’s effort to perform a task is affected not only by the outcomes of performance or rewards, but also his ability to perform that task and understanding of the job. If he feels he is able to perform a task, he does so in the expectation of a reward (intrinsic of extrinsic). The expected rewards are compared with actual rewards and if he is satisfied with the rewards, his level of satisfaction will go down, his perception about future rewards will go down and his motivation to perform better in future will also go down.

If the performance brings rewards to employees, it will provide them hob satisfaction and motivation to perform better.

The managers should, therefore, clearly assess the reward system so that effort-performance reward process leads to high performance by employees.

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