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Cognitive antecedents: Emotions differ from visceral factors like pain and hunger in that they
are largely triggered by beliefs, though some emotions may be triggered by sensory signals
Intentional objects: Emotions are about something Physiological arousal: Emotional states are
characterized by hormonal changes and changes in the autonomic nervous system Physiological
expressions: Emotions have characteristic observable expressions and bodily postures which can
serve as signals to others Valence: Term used to denote that emotions are located on a pleasure-pain
scale, with a neutral zero point of emotional indifference Action tendencies: states of readiness to
execute a given kind of action Action tendencies have the character of urges or impulses. (Frijda
1986)
2. Impact of emotions on behaviour Emotions influence human behaviour through their action
tendencies. Selective activation of memory structures >Pictures displaying emotional content are
better remembered>Mood influences recollection of events experienced in the same mood Selective
priming of cognitive constructs>Selective absorption of mood-congruent information>give more
weight to choice of relevant stimuli>System influencing the choice of relevant stimuli
3. Over-prediction of emotions-affects trade-offs >> Fearful people expressed pessimistic risk
estimates and risk-averse choices, while angry people, resembling happy ones, expressed the opposite
->> Positive affect induces more risk aversion in lotteries of high stakes and more risk seeking in
lotteries of low stakes >> Sad individuals prefer high-risk/high-reward options, where as anxious
individuals favour low-risk/low-reward options. Good (bad) moods lead to less (more) risk tolerance in
capital markets >> Guilt induces greater risk aversion, while the opposite is true when the person feels
like a victim >> People are generally risk averse in their own choices, but risk neutral in their prediction
for the average student
A risk averse investor is an investor who prefers lower returns with known risks rather than higher
returns with unknown risks
A risk neutral party's decisions are not affected by the degree
of uncertainty in a set of outcomes, so a risk neutral party is indifferent between choices with equal
expected payoffs even if one choice is riskier.
Investor who likes to
take risk and is even willing to pay for it. Also called risk lover.
4. Emotional dissonance: feeling different and expressing differently. Felt vs displayed emotions.
Faking Surface acting (following display rules); Deep acting (modify true inner feelings based on
display rules)
5. Emotional Intelligence: Ability to perceive and distinguish emotions in self and others >
Understand the meaning of these emotions > Ability to manage and regulate ones emotions
EI correlated with job performance and used as a factor for hiring decisions People in good moods
tend to be more creative than people in bad moods Positive emotions enhance problem solving skills
more options generated leading to better solutions Positive emotions promote flexibility and
openness in thinking Yerkes-Dodson law Positive mood improves persistence and motivation
Leadership speak to the emotions change management Deviant workplace behaviour
1. Motivation: Mental processes that account for an individuals intensity, direction and persistence of
effort toward any goal. Promotion is reward not an achievement. Achievement: internal motivation
(satisfaction), external motivation (reward) Achievement (doing something great) +Reward (somebody
giving you for doing-recognition). Reward can be given without achievements also.
2. Theory X and Theory Y (Douglas McGregor)
Theory X: employees inherently dislike work and are lazy, hence must be supervised closely or even
coerced to perform.
Theory Y: employees view work as being as natural as rest or play, hence they
seek autonomy and responsibility.
3. Two-Factor theory (Frederick Herzberg) Also called motivation-hygiene theory Dimensions
that made people feel good were different from those that made them feel bad Opposite of
satisfaction is no satisfaction Opposite of dissatisfaction is no dissatisfactionwages, working
conditions, jobsecurity, worklife balance, quality of supervision promotion,recognition, stimulating
work , responsibility, sense of achievement
4. McClellands theory of Needs Need for achievement (nAch): drive to excel Need for power
(nPow): need to make others behave in ways in which they would not have behaved otherwise Need
for affiliation (nAff): desire for interpersonal relationships High nAch: Strongly motivated when jobs
have high degree of personal responsibility and intermediate risk Successful in entrepreneurial

activities Does not necessarily make one a good manager interested in how well they do and not in
influencing others Best managers tend to have high nPow and low nAff (WHAT FACTOR DRIVES YOU
TO PERFORM)
5. Goal-Setting theory (Edwin Locke) Effect of goal specificity, challenge and feedback on
performance Specific goals increase performance difficult goals, when accepted, lead to higher
performance than easy goals why are people motivated by difficult goals? Feedback leads to
higher performance. Why? Participative (better) vs. assigned goalsCommitment to goal is highWhen goals are made public-Internal locus of control-Participative Implementation: Management by
objectives (MBO)
6. Equity theory: Employees make comparisons of their job inputs (effort, experience, competence)
and outcomes (salary, raises, recognition) with those of others O/I SELF < O/IOTHER => Under rewarded =>
anger ** O/ISELF = O/IOTHER => Equity ** O/ISELF > O/IOTHER => Over rewarded => guilty Change their inputs
(e.g., exert less effort if underpaid) Change their outcomes (e.g., produce more low quality units if on
piece-rate pay)Distort perceptions of selfDdistort perception of others-Choose a different
referentQuit the job
7. Expectancy theory: Probability to act in a certain way depends on the probability that the act will
result in a given outcome and the utility of that outcome (you r motivated to put high effort if u believe
efforts will result in high performance and thus better rewards.) Individual effort>individual
performance>organizational rewards>personal goals
Effort-performance: Perceived probability that exerting effort will be lead to performance>
Performance-reward: Degree to which one believes that good performance will lead to organizational
rewards> Rewards-personal goals: Degree to which organizational rewards satisfy ones personal
goals and needs

**Individuals obtain internal rewards when they learn (knowledge of results from feedback) that they
personally (experienced responsibility from autonomy) have performed well on a task they care about
(experienced meaningfulness from SV, TI & TS) Motivation Potential Score (MPS) = (Skill Var+Task
Id+Task Sig) x (1/3) x Autonomy x Feedback
10. Altruism/Intrinsic
motivation>Reciprocity/Extrinsic motivation> Selfish maximization >> Social norms-Friendly
requests-Instant paybacks not required>>Market norms--Sharp edged give-and-take--Involves
money>>Collision of the two-worlds can lead to trouble>> The relationship between payment and
effort will depend on the type of world (money market vs. social market) >> In Money-Market
relationships effort will be exerted according to the reciprocity theory. >>In Social-Market
relationships, effort will be shaped by the altruism theory and will not be sensitive to the level of
payment. >> Introducing monetary payments into a social exchange will cause individuals to shift from
perceiving the exchange as a Social-Market to a Money-Market, and effort patterns will follow. >>just
mentioning $ is sufficient to change the type of relationship from social to money markets.