Why are information systems essential in business today? Describe four trends in the global environment that have made information systems so important.

The emergence of a global economy, transformation of industrial economies, transformation of the business enterprise, and the emergence of the digital firm make information systems essential in business today.  These trends present the business firm and its management with several new challenges. .   

As a growing percentage of the advanced industrial economies in the United States, Europe and Asia depends on imports and exports, information systems supply both communications and analytic instruments for engaging in trade and for managing businesses that are spread throughout the world. 

The major industrial powers in the United States, Europe and Asia are being transformed from industrial economies to knowledge- and information-based service economies.  In such economies, information systems and technology have become critical to these economies, and in this day and age, they have become essential to economies that primarily remain reliant upon manufacturing.
Development of the power and capabilities of information systems has transformed the possibilities for organizing and managing business enterprises.  Businesses of this style are less hierarchical (flatter) and are more decentralized, allowing them to rely more on informal commitments and temporary task forces.  Many managers have become more reliant upon individuals who report to them for decision making as these reportees have more learning and current knowledge.  Also, more and more under this transformation, companies are becoming more customer-oriented. 

The emerging technology and the organizational redesign that has accompanied it have created the condition for the emergence of the digital firm.  While firms of this type are still few and far between, they are growing in number.  Perhaps more important right now, almost all larger firms and even many smaller ones have become reliant upon the digital firm technology for much of their activity, including relations with customers and suppliers. 

OTHER COSTS

Expenses

Decreases in ownership claims arising from delivering goods or services or using up assets is called expenses

Losses

Reduction in the value of property due to physical damage or destruction.

Example

During manufacturing 200 units lost due to some reasons is called loss.

Opportunity Cost

An opportunity cost is the benefit which could have been obtained by following another course of action.

Fixed Cost

Fixed costs are those cost, which do not change significantly in response to change in an activity base.

Example

Fixed cost can also included administrative and executive salaries property taxes leases and many types of insurance.

Variable Cost

A variable cost is one that arises or fall in direct proportion to change in the activity base.

Example

If the activity base increases by 10% the variable cost automatically increases by 10%.

Avoidable Cost

Cost that will not continue if an on going operation is changed or deleted are relevant.

Example

Avoidable cost includes department salaries and other costs that could be eliminated by not operating the specific department.

UNAVOIDABLE COST

Cost that continue even if an operation is deleted or changed are not relevant in our example because they are not effected by a decision to delete the department unavoidable cost include many common cost which are these cost of facilities $ services that are shared by user.

EXAMPLE

Store depreciation, heating, air conditioning and general management expenses are cost of resource used by all departments.

PRODUCTION COST

Production cost identify with goods produced or purchased for resale. This cost initially identifies as part of the inventory on hand these product cost become expenses only when the inventory is sold.

PERIOD COST

Period cost is cost that is deducted as expenses during the current period with out going through an inventory stage.

FULL COST

The total of all manufacturing cost plus the total of all selling and administrative cost are called full cost.

DIFFERENT TYPES OF COST

Out Of Pocket Cost

The out of pocket often used to describe cost which have not been yet incurred and which may very among the alternative course of action out of pocket cost, therefore, are relevant in making decision.

Imputed Cost

Imputed costs are hypothetical cost representing the cost of a resource measured by its use value. An imputed cost is similar to an opportunity cost, except that an imputed cost may be arbitrary measure.

Relevant Cost

The cost that directly effects future business decision is called relevant cost

Irrelevant Cost

The cost that do not effect the future business decision are called irrelevant cost

Inventorial Cost

Total cost all type of inventory that include work in process inventory, finished good inventory, merchandise inventory is called inventorial cost.

Differential Cost And Increment Cost

Differential cost and increment cost are defined as the difference in total cost between two alternatives.

Example

The differential cost and incremental cost of increasing production from 1000 automobiles to1200 automobiles per week would be the additional costs of producing the additional 200 automobiles each week. In the reverse situation the decline in cost caused by reducing production from 1200 to 1000 automobiles per week would often be called differential cost or increment cost.

Expenses

Decreases in ownership claims arising from delivering goods or services or using up assets is called expenses

Sunk Cost

A sunk cost is one which has already been incurred by past action. Sunk costs are not relevant to decision because they cannot be change regardless of what decision is made.

How did import substitution policies affect the economics of Brazil and Argentina?

Many major South American countries—including Argentina, Brazil, and Chile—adopted these well-intended but ultimately destructive import substitution policies. In the late 1980s, however, the countries began to reverse their policies. They lowered tariff barriers, sought free-trade agreements with

their neighbors, privatized their industries, and positioned their economics to compete internationally.

For example. Is now one of the most free-market-oriented economies in the world. These policy shifted are expanding South America’s role in world trade, attracting foreign capital to the continent, and increasing productivity and per capital income.

Discuss the role of natural resources and agriculture in Africa’s economy?

Much of Africa’s economy is tied to its natural resources. Libya enjoys the continent’s highest per capital income--$ 7,900 in 1999—because of its substantial oil reserves. Agriculture also is important to African countries. For some Agricultural products ate their major exports. For example, coffee, cocoa and palm oil account for 80 percent of cote d’Ivoire’s exports, and coffee

and tea comprised 80 percent of Rwanda’s exports prior to the eruption of tribal conflicts in that country.

South Africa possesses fertile farmland and rich deposits of gold, diamonds, chromium, and platinum. Many MNCs used South Africa as the base fro their African operations until the 1970s. In 1999 South Africa’s exports—primarily minerals—accounted for 25 percent of its $ 131 billion GDP.

What is a Chaebol?

The cooperation between Korean government and large firms to dominate the Korean economy is called Chaebol or a large business organization that consists of a number of companies that deal with a variety of different business, manufacturing, or commercial activities are Called Chaebol. The most important of these conglomerates or Chaebol are Samsung, Hyundai, Daewoo Group, and LG (formerly Lucky-Goldstar).

Who are the Four Tigers? Why are they important to international business?

Pacific Asia is one of the world’s most rapidly industrializing regions. South Korea, Taiwan, Singapore, and Hong Kong in particularly have made such rapid strides since 1945 that they are collectively known as the “Four Tiger”

South Korea has been one of the world’s fastest growing economics. Exporting accounted for 42 percent of its 1999 GDP of $ 407 billion to promote economic development.

Taiwan one of the world’s fastest growing economics during the past three decades, with a real growth rate averaging over 8 percent annually over that time span. Exports were $ 122 billion in 1999, or 34 percent of the country GDP of $ 357 billion.

In 1999, Singapore’s per capital income was $ 26,356 and its exports totaled $ 139 billion, or 164 percent of its GDP of $ 85 billion. That figure is not a misprint. Singapore thrives on reexporting. Singapore’s firm takes advantage of the country’s excellent port facilities to import foreign goods and then reexport them to other countries (particularly neighbor Malaysia).

Hong Kong has thrived as an entry port for China, receiving goods from it and preparing the goods for shipment to the rest of the world, and vice versa. Export statistics for Hong Kong reflect its role as a reexporter.

What is a keiretsu?

MITI has been aided by Japan’s concentrated industrial structure. Japanese industry is controlled by large families of interrelated companies, called keiretsu.

What role did MITI serve in the world economy?

Japan’s rapid growth during the pas 50 years is due in part to the partnership between its Ministry of International Trade and Investment (MITI) and its industrial sector. MITI has used its formal and informal powers to guide the production and investment strategies if the country’s corporate elite. For example, immediately after World War 2, MITI encourages Japanese firms to concentrate their efforts on such basic industries as steel and shipbuilding. As other countries entered these industries, MITI and Japan’s MNCs shifted their focus to producing automobiles consumer electronics, and machinery.

ROLE OF UNITED STATES IN WORLD ECONOMY

The United States has only the World’s third largest population and fourth larges land mass, yet it possesses the largest economy. With a 1999 GDP of 88.7 trillion, it accounts for more that one-quarter of the world’s GDP. The United States enjoy the highest per capital income of the North American countries. The United States occupies a unique position in the world economy because of its size and political stability, accounting for about one-seventh of world trade in goods and services. It is the prime market for lower-income countries trying to raise their standards of living through export-oriented economic development strategies. It is also the prime market for firms from higher-income countries trying to attract business from its large, well-educated middle class. The United Sates also is an important recipient of long-term foreign investment. Foreigners have invested nearly $ 1 trillion in U.S factories, equipment and properties.

How do differences in income levels and income distribution among countries affect international business?

Often the single most important piece of information needed by international businesspeople about a country is its income level. Income level provides clues to the purchasing power of residents. The technological sophistication of local production processes, and the status of the public infrastructure.

One important source of income statistics is the World Bank, which divides the world’s countries into high-income, middle-income, low-income categories. High-income countries are those that enjoy annual per capital incomes of at least $ 9,266. Middle-income countries have per capital incomes of more than $ 755 but less that $ 9,266.Low-income countries have per capital income of $

755 or less. (Per capital income is usually measured by dividing a country’s

gross domestic product (GDP) by its population). Middle-income and Low-income countries are less attractive to international business because they offer

less consumer demand and lack the public infrastructure necessary for reliable production and distribution of goods and services.

What is the Triad? What is the Quad? Why are they important to international businesses?

Much of the world’s current economic activity is concentrated in a group of countries called the Triad (Japan, the European Union, and the United States) or the Quad (the Triad plus Canada).

Together the 807 million residents of the Quad countries produced 73 percent of the world’s gross domestic product (GDP). The Quad countries—Japan, the member of the European Union, the United States, and Canada—are of particular importance to MNCs. Some experts believe that firm cannot succeed in the global economy unless they have a significant presence throughout the Quad.

What are the basic reasons for the recent growth of international business activity?

International business has growth dramatically in recent years because of strategic imperatives and environmental changes.

Strategic imperatives include the need to leverage core competencies, acquire resources, seek new markets, and match the actions of rivals. Although strategic imperatives indicate why firms wish to internationalize their operations, significant changes in the political and technical environment have no doubt facilitated the explosive growth in international business activity that has since World War 2. The growth of the internet and other information technologies is likely to redefine global competition and ways of doing international business once again.

What is portfolio investments?

Portfolio investments are purchases of foreign financial assets (stock, bonds and certificates of deposit) for a purpose other that control. An example of a portfolio investment is the purchase of 1000 shares of Sony’s common stock by a Danish pension fund. With this investment the pension fund is trying to raise the rate of return on its assts portfolio rather that to control Sony’s decision making for same reason many investor in recent years have bought shares of mutual funds that specialize in foreign stocks and bonds.

How do merchandise export and import differ from service export and imports?

Group of activities in goods—tangible products such as clothing, computers, and raw materials. Officials U.S government publications call this type of trade Merchandise export and import.

Group of activities is trade in services—intangible products such as banking, travel and accounting activities. In United States this type of trade is called service export and import.

What are the basic forms of international business activity?

There are many forms of international business activity which are as follows.

(1)   Exporting and Importing

(2)   International Investments

(3)   Portfolio Investments

There are some other forms of international business activity as well.

(1)   Licensing

(2)   Franchising

(3)   Management contract

Why is it important for you to study international business?

There are many different reasons why students today need to learn more about international business. First, almost any large organization you work for will have international operations or be affected by the global economy. You need to understand this increasingly important area to better assess career opportunities and to interact effectively with other managers. For example in your first job assignment you could be part of a project team that includes members from Mexico, Uruguay, and Canada. A basic grasp of international business would help you understand more fully why team was formed, what the company expect it to accomplish, and how you might most effectively interact with your colleagues. Another reason for you to study international business is to keep pace with your future competitors.

How does international business differ from domestic business?

Simply put domestic business involves transactions occurring within the boundaries of a single country, while international business transactions cross national boundaries. International business can differ from domestic business for a number of other reasons, including the following.

(1)   The countries involved may use different currencies, forcing at least one party to convert its currency into another.

(2)   The legal system of the countries may differ, forcing one or more parties to adjust their practices or comply with local law. Occasionally the mandates of the legal system may be incompatible, creating major headaches for international managers.

(3)   The cultures of the countries may differ, forcing each party to adjust its behavior to meet the expectation of the other.

(4)   The availability of resources differs by country. One country may be rich in natural resources but poor in skilled labor, while another may enjoy a productive well-trained workforce but lack natural resources. Thus, the way products are produced and the types of product that are produced vary among countries.

Question no 1: What is international business? How does it differ from domestic business?

INTERNATIONAL BUSINESS:-

International business consists of business transactions between parties from more than one country. Example of international business transaction include buying materials in one country and shipping them to another country for processing of assembly, shipping finished products from one country to another for retail sale.

Building a plant in a foreign country to finance operations in another. The parties involved in such transaction may include private individuals, individual companies, group of companies, and government agencies

A REORGANIZATION OF MASLOW'S & ALDERFER'S HIERARCHIES

Level	Introversion	Extroversion
Growth	Self-Actualization (development of competencies [knowledge, attitudes, and skills] and character)	Transcendence (assisting in the development of others' competencies and character; relationships to the unknown, unknowable)
Other (Relatedness)	Personal identification with group, significant others (Belongingness)	Value of person by group (Esteem)
Self (Existence)	Physiological, biological (including basic emotional needs)	Connectedness,  security

At this point there is little agreement about the identification of basic human needs and how they are ordered. For example, Ryan & Deci (2000) also suggest three needs, although they are not necessarily arranged hierarchically: the need for autonomy, the need for competence, and the need for relatedness. Thompson, Grace and Cohen (2001) state the most important needs for children are connection, recognition, and power. Nohria, Lawrence, and Wilson (2001) provide evidence from a sociobiology theory of motivation that humans have four basic needs: (1) acquire objects and experiences; (2) bond with others in long-term relationships of mutual care and commitment; (3) learn and make sense of the world and of ourselves; and (4) to defend ourselves, our loved ones, beliefs and resources from harm. The Institute for Management Excellence (2001) suggests there are nine basic human needs: (1) security, (2) adventure, (3) freedom, (4) exchange, (5) power, (6) expansion, (7) acceptance, (8) community, and (9) expression.
Notice that bonding and relatedness are a component of every theory. However, there do not seem to be any others that are mentioned by all theorists. Franken (2001) suggests this lack of accord may be a result of different philosophies of researchers rather than differences among human beings. In addition, he reviews research that shows a person's explanatory or attributional style will modify the list of basic needs. Therefore, it seems appropriate to ask people what they want and how their needs could be met rather than relying on an unsupported theory. For example, Waitley (1996) advises having a person imagine what life would be like if time and money were not an object in a person's life. That is, what would the person do this week, this month, next month, if he or she had all the money and time needed to engage in the activities and were secure that both would be available again next year. With some follow-up questions to identify what is keeping the person from happening now, this open-ended approach is likely to identify the most important needs of the individual.

There is much work still to be done in this area before we can rely on a theory to be more informative than simply collecting and analyzing data. However, this body of research can be very important to parents, educators, administrators and others concerned with developing and using human potential. It provides an outline of some important issues that must be addressed if human beings are to achieve the levels of character and competencies necessary to be successful in the information age.

Maslow's work lead to additional attempts to develop a grand theory of motivation, a theory that would put all of the factors influencing motivation into one model. An example is provided by Leonard, Beauvais, and Scholl (1995). These authors propose 5 factors as the sources of motivation: 1) Instrumental Motivation (rewards and punishers), 2) Intrinsic Process Motivation (enjoyment, fun), 3) Goal Internalization (self-determined values and goals), 4) Internal Self Concept-based Motivation (matching behavior with internally-developed ideal self), 5) External Self Concept-based Motivation (matching behavior with externally-developed ideal self). Individuals are influenced by all five factors, though in varying degrees that can change in specific situations. 

Factors one and five are both externally-oriented. The main difference is that individuals who are instrumentally motivated are influenced more by immediate actions in the environment (e.g. operant conditioning) whereas individuals who are self-concept motivated are influenced more by their constructions of external demands and ideals (e.g., social cognition).

Factors two, three, and four are more internally-oriented. In the case of intrinsic process, the specific task is interesting and provides immediate internal reinforcement (e.g., cognitive or humanistic theory). The individual with a goal-internalization orientation is more task-oriented (e.g., humanistic or social cognition theory) whereas the person with an internal self-concept orientation is more influenced by individual constructions of the ideal self (humanistic or psychoanalytic theory).

SOCIAL COGNITION

SOCIAL COGNITION
Social cognition theory proposes reciprocal determination as a primary factor in both learning and motivation. In this view, the environment, an individual's behavior, and the individual's characteristics (e.g., knowledge, emotions, cognitive development) both influence and are influenced by each other two components. Bandura (1986, 1997) highlights self-efficacy (individual can accomplish it) and self-regulation (the establishment of goals, the development of a plan to attain those goals, the commitment to implement that plan, the actual implementation of the plan, and subsequent actions of reflection and modification or redirection. The work of Ames (1992) and Dweck (1986) discussed below is a major component of social cognitive views on motivation.

ACHIEVEMENT MOTIVATION

ACHIEVEMENT MOTIVATION

One classification of motivation differentiates among achievement, power, and social factors (see McClelland, 1985; Murray, 1938, 1943). In the area of achievement motivation, the work on goal-theory has differentiated three separate types of goals: mastery goals (also called learning goals) which focus on gaining competence or mastering a new set of knowledge or skills; performance goals (also called ego-involvement goals) which focus on achieving normative-based standards, doing better than others, or doing well without a lot of effort; and social goals which focus on relationships among people (see Ames, 1992; Dweck, 1986; Urdan & Maehr, 1995). In the context of school learning, which involves operating in a relatively structured environment, students with mastery goals outperform students with either performance or social goals. However, in life success, it seems critical that individuals have all three types of goals in order to be very successful.

One aspect of this theory is that individuals are motivated to either avoid failure (more often associated with performance goals) or achieve success (more often associated with mastery goals). In the former situation, the individual is more likely to select easy or difficult tasks, thereby either achieving success or having a good excuse for why failure occurred. In the latter situation, the individual is more likely to select moderately difficult tasks which will provide an interesting challenge, but still keep the high expectations for success.

IMPACTING MOTIVATION IN THE CLASSROOM

Stipek (1988) suggests there are a variety of reasons why individuals may be lacking in motivation and provides a list of specific behaviors associated with high academic achievement. This is an excellent checklist to help students develop the cognitive component of their lives. In addition, as stated previously in these materials, teacher efficacy is a powerful input variable related to student achievement (Proctor, 1984).

There are a variety of specific actions that teachers can take to increase motivation on classroom tasks. In general, these fall into the two categories discussed above: intrinsic motivation and extrinsic motivation.

Intrinsic

Extrinsic

o                                Explain or show why learning a particular content or skill is important o                                Create and/or maintain curiosity o                                Provide a variety of activities and sensory stimulations o                                Provide games and simulations o                                Set goals for learning o                                Relate learning to student needs o                                Help student develop plan of action

o                                Provide clear expectations o                                Give corrective feedback o                                Provide valuable rewards o                                Make rewards available

As a general rule, teachers need to use as much of the intrinsic suggestions as possible while recognizing that not all students will be appropriately motivated by them. The extrinsic suggestions will work, but it must be remembered that they do so only as long as the student is under the control of the teacher. When outside of that control, unless the desired goals and behaviors have been internalized, the learner will cease the desired behavior and operate according to his or her internal standards or to other external factors.

ALDERFER HIERARCHY

             ALDERFER'S HIERARCHY OF MOTIVATIONAL NEEDS  

Level of Need	Definition	Properties
Growth	Impel a person to make creative or productive effects on himself and his environment	Satisfied through using capabilities in engaging problems; creates a greater sense of wholeness and fullness as a human being
Relatedness	Involve relationships with significant others	Satisfied by mutually sharing thoughts and feelings; acceptance, confirmation, under- standing, and influence are elements
Existence	Includes all of the various forms of material and psychological desires	When divided among people one person's gain is another's loss if resources are limited

  
Maslow recognized that not all personalities followed his proposed hierarchy. While a variety of personality dimensions might be considered as related to motivational needs, one of the most often cited is that of INTROVERSION AND EXTROVERSION. Reorganizing Maslow's hierarchy based on the work of Alderfer and considering the introversion/extraversion dimension of personality results in three levels, each with an introverted and extroverted component. This organization suggests there may be two aspects of each level that differentiate how people relate to each set of needs. Different personalities might relate more to one dimension than the other. For example, an introvert at the level of Other/Relatedness might be more concerned with his or her own perceptions of being included in a group, whereas an extrovert at that same level would pay more attention to how others value that membership.

HUMANISTIC THEORY 2

8) SELF TRANSCENDENCE: TO CONNECT TO SOMETHING BEYOND THE EGO OR TO HELP OTHERS FIND SELF-FULFILLMENT AND REALIZE THEIR POTENTIAL.
Maslow's basic position is that as one becomes more SELF ACTUALIZATION AND TRANSCEDENT, one becomes more wise (develops wisdom) and automatically knows what to do in a wide variety of situations. Maslow's ultimate conclusion that the highest levels of self-actualization are transcendent in their nature may be one of his most important contributions to the study of human behavior and motivation.
Norwood (1999) proposes that Maslow's hierarchy can be used to describe the kinds of information that individual's seek at different levels. For example, individuals at the lowest level seek coping information in order to meet their basic needs. Information that is not directly connected to helping a person meet his or her needs in a very short time span is simply left unattended. Individuals at the safety level need helping information. They seek to be assisted in seeing how they can be safe and secure. Enlightening information is sought by individuals seeking to meet their belongingness needs. Quite often this can be found in books or other materials on relationship development. Empowering information is sought by people at the esteem level. They are looking for information on how their ego can be developed. Finally, people in the growth levels of cogntive, aesthetic, and self-actualization seek edifying information. While Norwood does not specifically address the level of transcendence, I believe it safe to say that individuals at this stage would seek information on how to connect to something beyond themselves or to how others could be edified.
Maslow published his first conceptualization of his theory over 50 years ago (Maslow, 1943) and it has since become one of the most popular and often cited theories of human motivation. An interesting phenomenon related to Maslow's work is that in spite of a lack of evidence to support his hierarchy, it enjoys wide acceptance.

HUMANISTIC THEORY

HUMUNISTIC THEORY

One of the most influential writers in the area of motivation is ABRAHAM MASLOW.

ABRAHAM MASLOW attempted to synthesize a large body of research related to HUMAN MOTIVATION. Prior to ABRAHAM MASLOW, researchers generally focused separately on such factors as biology, achievement, or power to explain what energizes, directs, and sustains human behavior. Maslow posited a HIERARCHY OF HUMAN NEEDS based on two groupings: deficiency needs and growth needs. Within the deficiency needs, each lower need must be met before moving to the next higher level. Once each of these needs has been satisfied, if at some future time a deficiency is detected, the individual will act to remove the deficiency. The first four levels are:

1) PHYSIOLOGICAL: HUNGER, THIRST, BODILY COMFORTS, ETC.;

2) SAFETY/SECURITY: OUT OF DANGER;

3) BELONGINESS AND LOVE: AFFILIATE WITH OTHERS, BE                                                                                                ACCEPTED; AND

4) ESTEEM: TO ACHIEVE, BE COMPETENT, GAIN APPROVAL AND RECOGNITION.

According to Maslow, an individual is ready to act upon the growth needs if and only if the deficiency needs are met. Maslow's initial conceptualization included only one growth need--self-actualization. Self-actualized people are characterized by: 1) being problem-focused; 2) incorporating an ongoing freshness of appreciation of life; 3) a concern about personal growth; and 4) the ability to have peak experiences. Maslow later DIFFRENTIATED THE GROWTH OF SELF ACTUALLIZATION specifically naming two lower-level growth needs prior to general level of self-actualization (Maslow & Lowery, 1998) and one beyond that level (Maslow, 1971). They are:

5) COGNITIVE: TO KNOW, TO UNDERSTAND, AND EXPLORE;
6) AESTHETIC: SYMMETRY, ORDER, AND BEAUTY;
7)SELF ACTUALIZATION: TO FIND SELF-FULFILLMENT AND REALIZE ONE'S POTENTIAL

PSYCHOANALYTIC THEORY.

PSYCHOANALYTIC THEORY.

The psychoanalytic theories of motivation propose a variety of fundamental influences. Freud (1990) suggested that all action or behavior is a result of internal, biological instincts that are classified into two categories: life (sexual) and death (aggression). Many of Freud's students broke with him over this concept.

SUMMARY OF MOTIVATION THEORY

SUMMARY

To summarize the cognitive approaches, cognitive dissonance theory suggests that we will seek balance or homeostasis in our lives and will resist influences or expectations to change. How, then, does change or growth occur. One source, according to Piaget, is biological development. As we mature cognitively we will rework our thinking and organizations of knowledge (e.g., schemas, paradigms, explanations) to more accurately reflect our understanding of the world. One of those organizations involves our explanations or attributions of success or failure. After puberty, when biological change slows down considerably, it is very difficult to change these attributions. It requires a long-term program where constant feedback is given about how one's behavior is responsible for one's success.

Notice the relationship between William James' formula for Self Esteem(Self-esteem = Success / Pretensions) and the attribution and expectancy theories of motivation. If a person has an external attribution of success, self-concept is not likely to change as a result of success or failure because the person will attribute it to external factors. Likewise, if the person has an Internal/Ability explanation, his or her self-concept will be tied to learning to do a new activity quickly and easily (I do well because I'm naturally good at it). If failure or difficulty occurs, the person must quickly lower expectations in order to maintain self-esteem. However, if the person has a Internal/Effort explanation and high expectations for success, the person will persevere (i.e., stay motivated) in spite of temporary setbacks because one's self-esteem is not tied to immediate success.  

EXPLANATION

EXPLANATIONS OF INFLUENCES/CAUSES OF AROUSAL AND DIRECTION MAY BE DIFFERENT FROM EXPLANATIONS OF PERSISTENCE
In general, explanations regarding the source(s) of motivation can be categorized as either extrinsic (outside the person) or intrinsic (internal to the person). Intrinsic sources and corresponding theories can be further subcategorized as either body/physical, mind/mental (i.e., cognitive, affective, co native) or transpersonal/spiritual.

In current literature, needs are now viewed as dispositions toward action (i.e., they create a condition that is predisposed towards taking action or making a change and moving in a certain direction). Action or overt behavior may be initiated by either positive or negative incentives or a combination of both. The following chart provides a brief overview of the different sources of motivation (internal state) that have been studied. While initiation of action can be traced to each of these domains, it appears likely that initiation of behavior may be more related to emotions and/or the affective area (optimism vs. pessimism; self- esteem; etc.) while persistence may be more related to conation (volition) or goal-orientation. 


In a teaching/learning environment, it is important to assist the learner to develop a self-attribution explanation of effort (internal, control). If the person has an attribution of ability (internal, no control) as soon as the individual experiences some difficulties in the learning process, he or she will decrease appropriate learning behavior (e.g., I'm not good at this). If the person has an external attribution, then nothing the person can do will help that individual in a learning situation (i.e., responsibility for demonstrating what has been learned is completely outside the person). In this case, there is nothing to be done by the individual when learning problems occur.
A third cognitive approach is EXPACTANCY THEORY.which proposes the following equation:

Motivation = Perceived Probability of Success (Expectancy) *
Connection of Success and Reward (Instrumentality) *
Value of Obtaining Goal (Valance, Value)

Since this formula states that the three factors of Expectancy, Instrumentality, and Valance or Value are to be multiplied by each other, a low value in one will result in a low value of motivation. Therefore, all three must be present in order for motivation to occur. That is, if an individual doesn't believe he or she can be successful at a task OR the individual does not see a connection between his or her activity and success OR the individual does not value the results of success, then the probability is lowered that the individual will engage in the required learning activity. From the perspective of this theory, all three variables must be high in order for motivation and the resulting behavior to be high.