This is an example of the performance-to-outcome expectancy. The belief that one's effort (E) will result in the achievement of desired performance (P) goals is referred to as expectancy.
Typically expectancy is based on an individual's prior experience, self-confidence (self efficacy), and perception of the difficulty of the performance standard or goal. Performance outcome measures are a management tool used to clarify goals, document contributions toward achieving those goals, and document the program's and services' benefits to clients. According to expectation theory, individuals are motivated to perform if they know that their extra effort will be recognized and rewarded. As a result, companies that use performance-based pay can expect to see improvements.
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