Chapter 5 Theories of Motivation and Chapter 11 Making Decisions ( All sections EXCEPT "Decision Making in Groups")

What is Motivation

The process that drives individuals to act in order to achieve goals

Intrinsic motivation

Comes from within (Example Personal Satisfaction)

Extrinsic Motivation

Driven by external rewards (Example Money, Grades)

The five levels of Maslows Hierarchy of Needs

Physiological (food and water), Safety (security and stability), Social (love, belonging), Esteem (recognition, respect), Self Actualization (Personal Growth, Fulfillment)

Hygiene Factors

Prevent Dissatisfaction (E.G Salary, Work Conditions)

Motivators

Lead to Satisfaction (e.g achievement, recognition)

What are the two factors in Herzberg’s Two Factor Theory

Hygiene Factors and Motivators

Main Idea of Equity Theory

Employees compare their inputs and outcomes to others to seek fairness

What are the three components of Expectancy Theory

Expectancy, Instrumentality, Valence

Expectancy

Belief that efforts leads to performance

Instrumentality

Belief that performance leads to rewards

Valence

Value of the reward

Steps of Rational Decision Making Model

1. Define the problem

2. Identify decision criteria

3. Develop alternatives

4. Evaluate alternatives

5. Select and implement the best alternatives

Bounded Rationality Model

a decision making model where individuals make “good enough” decisions due to limited time and information

Anchoring and Adjustment Bias

Relying too heavily on initial information and failing to adjust

Availability Bias

Judging the probability of an event based on how easily example come to mind.

Confirmation Bias

Seeking out information that supports past decisions and ignoring contradictory information

Escalation of Commitment Bias

Continuing to invest in a failing course of action due to prior investments

Framing Bias

Making different decisions based on how a problem is presented

Fundamental Attribution Error

What is Attributing others failures to internal factors while ignoring external influences

Hindsight Bias

The tendency to believe, after an event has occurred, that it was predictable

Correlation and Causality Bias

Assuming that because two things occur together, one must cause the other

Overconfidence Bias

The tendency to overestimate ones ability to predict future events