Fairmont Hotels & Resorts lets its best performing employees design their rewards. This is done to ensure that the rewards are valued by the employees and serve as further motivation. Fairmont Hotels & Resorts uses to motivate its employees.

Expectancy theory

Explanation:

Vroom's expectancy theory of motivation is based upon the fact that employees will be motivated to achieve their targets and goals only when they know, doing so would lead to prospect of earning rewards and incentives.

Vroom related employee performance with various factors such as their skills, demeanor, knowledge and personal experiences.

The rewards and incentives serve as a driving force to an employee's performance and efficiency.

Expectancy refers to a belief that increased performance and hard work leads to better efficiency.

An employee chooses from available set of alternatives with a purpose to maximize his/her pleasure and comfort undergoing minimum pain.

In the given case, the company rewards their top performing individuals by letting them devise their rewards so as to serve as means to employee motivation as well as those rewards being valued by them. The company uses expectancy theory of motivation.

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