Victor Vroom is perhaps most famous for his work with Expectancy Theory, which forms the basis for his motivational model. Vroom's version of Expectancy Theory grew from the premise that employee performance depends on a number of complex, interrelated factors (i.e., personality, skills, knowledge, experience and ability). Expectancy Theory is built on the relationship between three concepts: Valence (the value an employee places on a specific reward or outcome), Instrumentality (the likelihood that a particular action will lead to a desired outcome), and Expectancy (the belief that effort will lead to the successful completion of an action which will achieve the desired outcome). Through understanding the dynamics of this theory, managers become better able to meet employees' needs, facilitating the completion of the Expectancy cycle.
Another contribution Vroom made to management theory was his Leadership Model, which sets forth five leadership styles managers may use for decision-making. The five styles follow.
1. Autocratic 1: In the first style of Vroom's theory, the manager makes decisions with already available information.
2. Autocratic 2: Manager seeks additional information from the group before making decisions.
3. Consultative 1: Manager consults individual employees before making decisions.
4. Consultative 2: Manager consults the group before making decisions.
5. Group 2: Manager acts as chair, allowing the group to make decisions.