Motivation drives employee behavior and influences their ability to accomplish goals. There are two main types of motivation: intrinsic motivation, which comes from internal factors like learning and growth opportunities, and extrinsic motivation, which involves external factors like pay, bonuses, and promotions. Psychological theories of motivation include Hertzberg's two-factor theory distinguishing motivation and hygiene factors, and Maslow's hierarchy of needs ranging from basic needs to self-actualization. Managers can motivate employees through setting goals, recognizing achievements, offering incentives, and creating a positive work environment.