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Important topics and theories in CAPM

Expectancy Theory

Employees who believe their efforts will lead to effective performance and who expect to be rewarded for their accomplishments will remain productive as rewards meet their expectations.


In arbitration, neutral party hears and resolves a dispute.

Perquisites (PERKS)

Some employees receive special rewards, such as bonus, gain-share, good offices, etc.

Fringe Benefits

There are standard benefits formally given to employees, such as educational benefits, insurance, and profit sharing.

Motivation Theory

Here are few motivation theories a project manager needs to know:

1. McGregor's Theory Of X And Y

McGregor believed that all workers fit into one of two groups, X and Y.

Theory X: managers who accept this theory believe that people need to be watched every minute. They believe employees are incapable, avoid responsibility, and avoid work whenever possible.

Theory Y : managers who accept this theory believe that people are willing to work without supervision, and want to achieve. They believe employees can direct their own efforts.

2. Maslow's Hierarchy Of Needs

Maslow's pyramid (also called hierarchy of needs) include physiological needs, safety needs, social needs, esteem needs and self-actualization needs.

3. Herzberg's Theory

Herzberg's Theory deals with hygiene factors and motivating agents.

Hygiene Factors

Poor hygiene factors may destroy motivation, but improving them, under most circumstances, will not improve motivation. Hygiene factors are not sufficient to motivate people. Examples of hygiene factors are:

  • Working conditions

  • Salary

  • Personal life

  • Relationships at work

  • Security

  • Status

Motivating Agents

What motivates people is the work itself, including such things as:

  • Responsibility

  • Self-actualization

  • Professional growth

  • Recognition

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