The principal determinant of an employee's desire to perform at a high level is his or her work motivation. Psychological forces within people affect how motivated they are. Managers can increase the motivation of their employees by understanding the six different theories of motivation discussed in this chapter and putting them into practice. They can also increase the motivation of their employees via job enrichment, enlargement, and empowerment techniques, as well as by implementing self-managed teams and controlling the amount of conflict in their organizations. This chapter made the following points:

1. Maslow's needs hierarchy theory explains the specific needs people are trying to satisfy through their behaviors at work.
2. Expectancy theory argues that people are motivated to pursue work behaviors they believe will result in the outcomes and rewards that satisfy their needs.
3. Goal-setting theory suggests that setting specific, challenging, measurable, results-oriented, and timespecific goals motivates employees to perform at a high level.
4. Management by objectives (MBO) is a popular performance review system that involves setting specific and challenging goals and then reviewing employees' progress towards achieving those goals.
5. Equity theory proposes that an employee's perception of the fairness of a company's review and reward process is an important determinant of his or work motivation. Employees compare their performance and rewards to those of other employees to evaluate whether or not they have been fairly treated.
6. Job enrichment theory suggests that the motivation of employees depends on the degree of control they have over the way they do their jobs.
7. A group is a collection of people who follow similar work rules and norms and work towards a common, specific, and measurable goal. A team is a collection of people who are jointly responsible for creating, managing, and changing work rules and norms to find better ways to achieve their current goals and establishing more challenging future goals.
8. Several types of teams are functional (departmental) teams, cross-functional teams, top management teams, and virtual teams.
9. There are several performance advantages associated with the use of groups and teams. However, these advantages can only be realized when managers design and manage the firm's teams correctly. When teams become too large, problems can ensue that hamper their performance.
10. Organizational conflict is the discord that ensues when an organization's stakeholders attempt to thwart each other's efforts to achieve their goals and objectives.
11. Four important sources of conflict are incompatible goals, complex task interdependencies, incompatible reward systems, and scarce resources.
12. Negotiation and bargaining is a conflict resolution technique used by managers to increase the chances that conflicting parties will reach a compromise.
13. Managers can use four specific negotiation and bargaining tactics to make a compromise more likely: emphasize common goals; focus on the problem, not the people; create opportunities for joint gain; and focus on what is fair.