1 Explain what motivation is and why managers need to be concerned about it.

1. The Nature of Motivation
   Motivation consists of the psychological forces that determine the direction and effort of a person's behavior. Effort refers to how hard a person works. Persistence refers to whether or not a person keeps trying.
   1. Intrinsically motivated behavior – work performed for its own sake.
   2. Extrinsically motivated behavior – work performed to receive money or social rewards or to avoid punishment.
   3. Outcome – anything a worker receives from a job.
   4. Input – anything a worker contributes to a job.

2 Describe from the perspectives of expectancy theory and equity theory what managers should do to have a highly motivated workforce.

2. Expectancy Theory
   Expectancy theory – Vroom believed that motivation is high when performance leads to the desired outcomes.
   1. Expectancy – a person's perception of how his or her effort will result in a given level of performance.
   2. Instrumentality – a person's perception about how performance will result in achieving outcomes.
   3. Valence – the desirability of each outcome available from a job.
   4. Bringing it all together – high motivation will result from high expectancy, instrumentality, and valence.

3 Explain how goals and needs motivate people and what kinds of goals are especially likely to result in high performance.

3. Need Theories
   1. Maslow's hierarchy of needs
      1. Physiological – basic needs for food, water, and shelter.
      2. Safety – need for security and a safe environment.
      3. Belongingness – needs for social interaction and friendship and love.
      4. Esteem – need to feel good about oneself and to be respected by others.
      5. Self-actualization – need to achieve one's full potential.
   2. Alderfer's ERG theory: three universal needs
      1. Existence – needs for food, water, clothing, and shelter in a safe environment.
      2. Relatedness – need for good interpersonal relations.
      3. Growth – need for self-development and productive work
   3. Herzberg's motivator-hygiene theory
      1. Motivator needs – relate to the nature and challenge of the work.
      2. Hygiene needs – related to the context in which the work occurs.
   4. McClelland's needs for achievement, affiliation, and power.
      1. Need for achievement – the need to perform challenging tasks well according to personal standards of excellence.
      2. Need for affiliation – the need to maintain good interpersonal relations.
      3. Need for power – the need to control others.
   5. Other needs – the need to balance work and personal life.
4. Equity Theory
1. Equity theory focuses on the perception of fairness outcomes in proportion to inputs.
2. Equity – exists when a persons perceives that his own outcome-input ratio equals another's outcome-input ratio.
3. Inequity – a lack of fairness.
   1. Underpayment inequity – a person's own output-input ratio is less than another person's.
   2. Overpayment inequity – a person's own output-input ratio is greater than another person's.
4. Ways to restore equity – either by lowering one's inputs or by changing one's perception of his own or another's inputs or outcomes.
5. Goal-setting Theory
1. Goal-setting theory focuses on motivating workers to contribute inputs to their jobs.
2. Learning theories – learning is a change in behavior or knowledge resulting from practice or experience.

4 Identify the motivation lessons that managers can learn from operant conditioning theory and social learning theory

2. Skinner's operant conditioning theory – people learn behaviors that lead to desired consequences, and avoid behaviors that lead to undesired consequences.
   1. Positive reinforcement – people receive rewards when they perform desirable behaviors.
   2. Negative reinforcement – people stop performing undesirable behaviors to avoid receiving undesired consequences.
   3. Extinction – undesirable behaviors are not reinforced.
   4. Punishment – administering undesirable consequences when undesirable behavior occurs.
   5. Organizational behavior modification – encouraging desirable behaviors in the organization, and discouraging undesirable behaviors.
3. Social learning theory – motivation can occur from one's thoughts and beliefs.
   1. Vicarious learning – a learner observes a model perform a behavior for which the model is positively reinforced.
   2. Self-reinforcement – people motivate themselves by accomplishing goals.
   3. Self-efficacy – the extent to which a person believes in his ability to be successful in a given activity.

5 Explain why and how managers can use pay as a major motivation tool

6. Pay and Motivation
   1. Basing merit pay on individual, group, or organizational performance – all of these can be used to determine a manager's pay level.
   2. Salary increase or bonus? – bonuses are typically more motivational than salary increases.
   3. Examples of merit pay plans
      1. Piece-rate pay – workers are paid on the basis of the number of units produced.
      2. Commission pay – workers are paid a percentage of sales only when a sale actually occurs.
      3. Profit sharing – workers receive part of the organization's profits.