Motivation in context of managing

people
- Using Vroom’s Expectancy
Theory
Group members:
Table of Contents

Introduction to Motivation Theory

2. Vroom’s Expectancy Theory
3. Application of Vroom’s Expectancy Theory in a Workplace Setting
4. Ways Tesla Motivates Employees
5. The Importance of Individual Differences
6. Motivating Unmotivated Employees
7. Consequences of an Unmotivated Workforce
8. Real-Life Example: Tesla's Approach to Unmotivated Employees
9. Conclusion
10. References
Introduction to Vroom’s
Expectancy Theory

• Motivation comes from 3 beliefs:

• Expectancy: Effort → Performance
• Instrumentality: Performance → Reward
• Valence: Value of the reward to the person
People are motivated when they believe their effort will lead to something they
value.
 Overview of Vroom’s Expectancy
Theory

WHY TESLA? TECH AND FAST-PACED, MISSION- KNOWN FOR BIG

AUTOMOTIVE DRIVEN CULTURE GOALS, LONG HOURS,
INNOVATOR WITH AND PASSIONATE
100,000+ EMPLOYEES EMPLOYEES
Application of Vroom’s
Expectancy Theory in Tesla’s
Workplace Setting
Vroom’s Expectancy Theory provides a robust framework for understanding how
motivation works at Tesla. Employees are driven by the clear connection
between effort, performance, and reward, but Tesla must continuously evaluate
whether the rewards align with individual values and whether the high-pressure
work environment is sustainable in the long term. By doing so, Tesla can
continue to maintain a motivated and high-performing workforce.
Ways Tesla Motivates Employees

Employees expected to work Tools and autonomy to meet Performance tracked through Tesla uses a combination of
hard and innovate constantly high standards KPIs, engineering milestones, financial incentives,
and deadlines recognition, autonomy,
and a mission-driven
culture to motivate its
employees. The company’s
high-performance
environment and strong
sense of purpose are key
drivers of employee
motivation. However,
balancing these elements
with support for work-life
balance and mental
wellbeing is crucial to ensure
long-term employee
satisfaction and retention.
The Importance of Individual
Differences
(Performance → Reward)
At Tesla, individual differences play a significant role in how the company motivates its
employees. By acknowledging varying personal values, work styles, career goals,
and personal needs, Tesla creates a motivating work environment that supports
diversity and encourages high performance. The company’s ability to adapt to these
differences fosters a culture of innovation, efficiency, and sustainability, which drives
Tesla’s continued success.
High performance leads to:
• Promotions
• Stock options and bonuses
• Special project opportunities (e.g., SpaceX crossover roles)
• Reputation as a high performer can lead to more influence
Impact of Individual Differences on
Motivation at Tesla (Value of
Rewards)
Rewards must match employee values:
• Some value financial growth (stock equity)
• Others value innovation and career development
• Mission-driven employees value changing the world
The impact of individual differences on motivation at Tesla is significant. By
understanding and leveraging the unique traits, values, aspirations, and work styles of
its diverse workforce, Tesla creates a motivating environment that maximizes employee
performance. However, as the company continues to grow, it will need to carefully
manage these differences to maintain motivation and ensure that all employees feel
valued, supported, and aligned with the company’s ambitious goals.
Motivating Unmotivated
Employees
Motivating unmotivated employees at Tesla requires a multi-faceted approach that addresses
individual needs, provides clear career progression, and reinforces the company’s mission. By
offering personalized feedback, creating growth opportunities, improving work-life balance,
and fostering a positive work environment, Tesla can re-engage employees and boost overall
productivity and morale. Tesla's commitment to employee motivation plays a crucial role in
sustaining its innovative and high-performance culture.
Diverse teams: engineers, marketers, factory workers, software developers
• Tesla tailors:
• Leadership paths for innovators
• Clear goals for production staff
• Flexible roles for software/creative teams
Consequences of an
Unmotivated Workforce
The consequences of an unmotivated workforce at Tesla can be far-reaching, impacting
productivity, innovation, customer satisfaction, and overall company performance. To
prevent these negative outcomes, Tesla must proactively address the factors that contribute
to demotivation and foster an environment that encourages employee engagement, growth,
and alignment with the company’s mission.
• Lower Work Output: Unmotivated employees often put in less effort, leading to a drop in
overall productivity.
• Reduced Quality of Work: Lack of engagement can result in poor-quality output, affecting
Tesla’s product standards.
Real-Life Example: Tesla's
Approach to Unmotivated
Employees
Tesla’s approach to addressing unmotivated employees has been
multifaceted, involving a combination of high expectations, career
development opportunities, recognition, mental health support, and
fostering a meaningful work environment. Despite occasional challenges,
the company has taken steps to create a work environment where employees
can thrive, grow, and remain motivated—whether through career advancement
opportunities, stock options, or alignment with Tesla’s mission to create a
sustainable future.
 Conclusion
• Tesla fits Vroom’s theory: clear effort → reward link
• Strong in performance and recognition
• Needs to balance ambition with well-being
In Conclusion, Vroom’s Expectancy Theory shows that motivation is
influenced by the belief that effort leads to desired outcomes. By
ensuring employees understand the connection between their effort,
performance, and reward, Tesla can drive motivation and improve
productivity. This theory is evident in Tesla’s approach, where high-
performing employees are rewarded with career growth, financial
incentives, and alignment with the company’s sustainability
mission.
 References

• Vroom, V.H., 1964. Work and motivation. New York: Wiley.

• Robbins, S.P. and Judge, T.A., 2019. Organizational behavior. 18th ed. Harlow: Pearson Education.
• Tesla, Inc., 2023. Tesla Impact Report 2022. [online] Available at: https://www.tesla.com/impact
[Accessed 19 Apr. 2025].
• CNBC, 2022. Tesla's intense work culture: What it's like to work under Elon Musk. [online] Available at:
https://www.cnbc.com/2022/06/01/what-its-like-to-work-at-tesla-under-elon-musk.html [Accessed 19
Apr. 2025].
• Business Insider, 2021. Tesla employees say long hours and high pressure define the culture. [online]
Available at:
https://www.businessinsider.com/tesla-work-culture-employees-reveal-what-its-like-2021-11 [Accessed
19 Apr. 2025].
• Miner, J.B., 2005. Organizational behavior 1: Essential theories of motivation and leadership. Armonk,
NY: M.E. Sharpe.
• Forbes, 2023. How Tesla’s reward system impacts employee motivation. [online] Available at:
https://www.forbes.com/sites/tesla-rewards-motivation-2023 [Accessed 19 Apr. 2025].