Review for Test 3
Fundamentals of Management
Chapter 11
An employee who is motivated will try harder to do a good job than one who is not motivated.
Performance formula: Performance = Ability x Motivation x Resources. Needs (Maslow) Theory:
The needs in order of importance to a person: Physiological Needs: primary or basic needs; Safety
Needs: safety and security needs; Social Needs: love, friendship, acceptance, affection; Esteem
Needs: ego, status, self-respect, recognition; Self-Actualization: highest level of need is to develop
one’s full potential. Two factor theory: Maintenance factors are also called extrinsic motivators,
because the motivation comes from outside the job (e.g. pay, benefits, job security, working
conditions, relationship with co-workers, company policies). Motivators are called intrinsic
motivators because the motivation comes from the work itself (recognition, achievement, increased
responsibility, challenging work, growth, and advancement). Employees are motivated by motivators
rather than by maintenance factors. Maintenance factors are needed to stop dissatisfaction but not to
make employees more satisfied. Acquired Needs Theory: proposes that employees are motivated by
their needs for achievement, power, and affiliation. Expectancy Theory: Employees are motivated
