There are three factors that affect the level of individual performance: motivation, ability and opportunity to participate. The first two factors were highlighted by Vroom (1964) who made the following suggestions on the basis of his research.
Vroom is therefore suggesting that people need both ability and motivation to perform well and that if either ability or motivation is zero there will be no effective performance.
Vroom also pioneered expectancy theory which, as developed by Porter and Lawler (1968), proposes that high individual performance depends on high motivation plus possession of the necessary skills and abilities and an appropriate role and understanding of that role. From this, as Guest (1997) claims:
"It is a short step to specify the HR practices that encourage high skills and abilities, for example careful selection and high investment in training; high motivation, for example employee involvement and possibly performance-related pay; and an appropriate role structure and role perception, for example job design and extensive communication and feedback… We therefore have a theory that links HRM practices to processes that facilitate high individual performance."
Research carried out by Bailey et al (2001) in 45 establishments focused on the ‘opportunity ton participate’ factor as it affects performance. They noted that ‘organizing the work process so that non-managerial employees have the opportunity to contribute discretionary effort is the central feature of a high performance work system’. (This was one of the earlier uses of the term ‘discretionary effort’.) They stated that the other two components of a high performance work system were incentives and skills.
The ‘AMO’ formula put forward by Boxall and Purcell (2003) is a combination of the Vroom and Bailey et al ideas. This model asserts that performance is a function of Ability + Motivation + Opportunity to Participate (note that the relationship is additive not multiplicative). HRM practices therefore impact on individual performance if they encourage discretionary effort, develop skills and provide people with the opportunity to perform.
Factors affecting individual performance, Vroom (1964)
The effects of motivation on performance are dependent on the level of ability of the worker, and the relationship of ability to performance is dependent on the motivation of the worker. The effects of ability and motivation on performance are not additive but interactive. The data presently available on this question suggest something more closely resembling the multiplicative relationship depicted in the formula:
Performance = ƒ (Ability × Motivation)
References
Boxall, P F and Purcell, J (2003) Strategy and Human Resource Management, Palgrave Macmillan,Basingstoke[Accessed on 2018]
Vroom, V (1964) Work and Motivation, Wiley, New York[Accessed on 2018]
Bailey, T, Berg, P and Sandy, C (2001) The effect of high performance work practices on employeeearnings in the steel, apparel and medical electronics and imaging industries, Industrial and Labor Relations Review[Accessed on 2018]
Guest, D E (1997) Human resource management and performance; a review of the research agenda, The International Journal of Human Resource Management.[Accessed on 2018]
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https://www.google.lk/search?biw=1536&bih=683&tbm=isch&sa=1&ei=qHkwW8yyBtGc9QONt78Y&q=individual+performance&oq=individual+performance&gs_l=img.3...37115.37115.0.37242.1.1.0.0.0.0.0.0..0.0....0...1c.1.64.img..1.0.0....0.ZBI-TOZaQTM#imgrc=ARiV2VlRlKhYOM:[Accessed on 2018]
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