This chapter discusses theories of motivation and how they relate to motivating employee behavior and performance. It covers:
- The nature of motivation and what determines direction, effort, and persistence.
- Intrinsic, extrinsic, and prosocial motivation.
- Expectancy theory and the roles of expectancy, instrumentality, and valence.
- Need theories like Maslow's hierarchy of needs and Herzberg's two-factor theory.
- Equity theory and the impact of fair and unfair outcomes.
- Goal setting, learning, and social learning theories.
- The role of pay in motivation based on different theories.
- Examples of merit pay plans like piece rates, commissions, and profit sharing.