A Key Motivational Principle States That Performance Is Based on a Person's

question 41

Essay

A key motivational principle states that performance is based on a person's level of ability and motivation,expressed by the formula,Performance = ƒ (ability  motivation).In this formula,ability and motivation are linked by a multiplicative relationship (ability  motivation),rather than an additive relationship (ability + motivation).Explain the implications of this multiplicative relationship for performance,and specify why an understanding of this fact is important to the manager.

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Definitions:

Net Income

The amount of profit a company has left after all expenses, taxes, and costs have been subtracted from total revenue.

Net Working Capital

The difference in a company’s readily available assets versus its current financial obligations, marking its short-term economic status.

Statement of Financial Positions

A financial report that presents a company's assets, liabilities, and equity at a specific point in time, giving insight into its financial health.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.