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Lesson Summary
Theories of Motivation
When we refer to someone as being motivated, we mean that the person is trying hard to accomplish a certain task.
Motivation is clearly important if someone is to perform well; however, it is not sufficient.
Environmental factors such as having the resources, information, and support one needs to perform well are critical to determining performance. At different times, one of these three factors may be the key to high performance.
Being motivated is not the same as being a high performer and is not the sole reason why people perform well, but it is nevertheless a key influence over our performance level.

Need-based theories
Need-based theories describe motivated behavior as individuals’ efforts to meet their needs. According to this perspective, the manager’s job is to identify what people need and make the work environment a means of satisfying these needs.
Maslow’s hierarchy describes five categories of basic human needs, including physiological, safety, social, esteem, and self-actualization needs. These needs are hierarchically ranked, and as a lower-level need is satisfied, it no longer serves as a motivator.
ERG theory is a modification of Maslow’s hierarchy, in which the five needs are collapsed into three categories (existence, relatedness, and growth). The theory recognizes that when employees are frustrated while attempting to satisfy higher-level needs, they may regress.
The two-factor theory differentiates between factors that make people dissatisfied on the job (hygiene factors) and factors that truly motivate employees (motivators).
Acquired-needs theory argues that individuals possess stable and dominant motives to achieve, acquire power, or affiliate with others.

Process-based theories
Process-based theories use the mental processes of employees as the key to understanding employee motivation. According to equity theory, employees are demotivated when they view reward distribution as unfair.
Perceptions of fairness are shaped by the comparisons they make between their inputs and outcomes with respect to a referent’s inputs and outcomes.
Following equity theory, the research identified two other types of fairness (procedural and interactional) that also affect worker reactions and motivation.
According to expectancy theory, employees are motivated when they believe that their effort will lead to high performance (expectancy) when they believe that their performance will lead to outcomes (instrumentality), and when they find the outcomes following the performance to be desirable (valence).
Reinforcement theory argues that behavior is a function of its consequences. By properly tying rewards to positive behaviors, eliminating rewards following negative behaviors, and punishing negative behaviors, leaders can increase the frequency of desired behaviors.