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Nordstrorm Case – Expectancy Model Nordstrom: Expectancy ModelThe expectancy Model can be depicted as Effort (E) → Performance (P) → Outcome (O). The three main elements of Expectancy Model are Expectancy (E→ P), Instrumentality (P → O), and Valence[1]. Nordstrom’s incentive compensation system was instituted with an aim to promote extrinsic motivation in its sales staff. The incentive compensation.