Definitions of Motivation: There are many ways in which motivation can be defined. In general, motivation includes an individual's effort, perseverance, and the direction of that effort. In simple terms, it is the will to perform. (Brooks, I, 2006). Eugene Mckenna believes that with motivation people respond to conditions operating within and outside themselves and do what they can to fulfill their role. To motivate people, elements such as needs, motivations, impulses and goals or incentives of individuals must be examined (Mckenna, E, 2000). The first definition deals with the meaning of motivation in broad and simple terms. The second, however, examines what motivates people. How understanding motivation can help improve employee performance: For an organization to motivate its employees, it must understand the factors that motivate people such as needs, motivations, drives, goals or incentives. The needs can be psychological, safety, social and ego or esteem. Motivations consist of internal states that stimulate, trigger, and direct a person's behavior. Drives are internal states through which the individual adopts a behavioral model to achieve a particular goal. Goals or incentives satisfy or reduce the behavior associated with the drive. .(Mckenna, E, 2000).If the organization understands and uses these factors in its analysis, people will consistently achieve their goals, project energy and enthusiasm into work. They will have the ability to overcome obstacles and problems to progress. They would accept additional responsibilities and organizational changes. On the contrary, if the company does not take these factors into account, it will end up with reluctant and unmotivated employees who cannot progress... middle of paper... because McDonald's is young. At that age they only think about earning money to go out and have fun, and the older they get, the more they would like to earn more than just minimum wage. Because of this, they are motivated to stay at McDonald's and move up the hierarchy and may work in the headquarters rather than remaining as low-level employees. Theory X and Theory Y: In terms of Theory On the other side of the coin, and in terms of Theory Y, managers use a much more positive approach when dealing with competent employees because they need them for the future, they motivate them by telling them that it may take them longer to move up the management hierarchy.