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Motivation Theory: What Motivates Me

As an employee, I am motivated by items that are personal to my life’s situation. These items have to deal with things that affect my family, my future financials, and me. With considering these things, the company that I work for must have a positive influence on these personal motivational factors.

In the workplace, my motivation to get work done and complete task is based upon the leadership style of my supervisors. A supervisor must understand that my family and future success are key motivational factors for me and my future within the organization. Having an employer that threatens these motivations will result in me putting forth less effort to satisfy my work responsibilities. Moreover, I would begin looking for ways in which to leave the company and instead follow a company that positively influences and aligns with my personal motivational factors. Because family and future are important, it means that steady income, business reference, reliability, likeability, and financial advancement are also important.

The style of leadership that I look for in an employer matches that of a transformational, servant, and transactional leader. A servant leader would take my personal needs and motivations into consideration and will be able to develop upon them (Liden, Wayne, Liao, & Meuser, 2014). This type of leader is said to be sensitive to the personal motivations of their followers (Liden, Wayne, Liao, & Meuser, 2014). While a servant leader would be desired, I believe it would be unlikely to find such a leader considering my belief that workplace employers have other responsibilities outside of serving their employees. A transformational leader can be an ideal point of reference for my learning advancement. This type of leader could motivate me by being optimistic about my future position within the company and would help me reach my career goals (Kovjanic, Schuh, Jonas, Quaquebeke, & Dick, 2012). I would be able to use this type of leader as a role model and they could help me reach my mental capacity for achieving my goals. A transactional leader could provide me with short-term project and task exchanges as motivation to reach my short-term goals (Northouse, 2013, p. 195). The types of rewards and incentives that a transactional leader provides would be motivational throughout the journey of achieving my long-term objectives and satisfying my personal motives.

Overall, nothing is more paramount for me than trust in my employer’s leadership. Having a leader that I trust, would keep me not only motivated for reaching my personal goal, but would build motivation for me to achieve my current and future career goals. Following leaders and working for organizations that provide transactional, transformational, and servant leaders would be effective and beneficial to both myself and my employers if they desire my dedication, knowledge, and creativity within their organization.



Kovjanic, S., Schuh, S., Jonas, K., Quaquebeke, N., & Dick, R. (2012). How do transformational leaders foster positive employee outcomes? A self-determination-based analysis of employees’ needs as mediating links. Journal of Organizational Behavior. Retrieved November 11, 2014, from

Northouse, P.G. (2013). Leadership: Theory and practice (6th ed.). Thousand Oaks, CA: Sage Publications

Liden, R.C., Wayne, S.J., Liao, C., & Meuser, J.D. (2014). Servant leadership and serving culture: Influence on individual and unit performance. Academy of Management Journal, 57, 1434-1452. doi:10.5465/amj.2013.0034

Market Efficiency Theory

Market Efficiency Theory
Market efficiency was formulated by Eugene Fama in 1970, labeled as efficient market hypothesis. His theory suggests that stock and market value are based on publicly available information. Investors invest with the goal that their investment will generate a positive return on their investment. An efficient capital market is when a stock price reflects publicly available information that may affect the stocks value, which could benefit investors. Efficient markets generate random patterns that cannot be predicted, and an investor cannot factually predict a stock value with secretive information.

Less Efficient U.S. Markets
Markets are much more inefficient than they used to be, and unreliable information could cause investors to receive inefficient values. If markets are unreliable, the value could potential plummet and non-informed investors may not be interested in purchasing new stock. Furthermore, An inefficient market would likely be placing a market value above or below its true value. An inefficient market creates unfair advantages for certain investors who would not otherwise have access to the company’s information. Markets become less efficient often due to greed, economic involvement, negligence, and lack of communication.

Markets in Other Countries
Many studies have found that market prices are difficult to predict. Compared to the United States, other countries also have problems with market inefficiency. Market efficiency asserts that there is no pattern or trends that can be used to predict future value. In the Indian capital market for instance, market inefficiency exist that contradict the efficient market hypothesis. A study, which examined a calendar anomaly within the stock market; found that stocks often held until after the New Year present a higher return rate, and that Monday is considered the worst day of the week to invest. While this isn’t considered inside information, it does create a predictable trend that creates a level of efficiency to use in predicting market trends and potential.

Finding efficiency within the stock market may seem fairly simple with the use of technology and cheap software tools that can find patterns within stock prices. However, the reality is that there is no way in determining the direction of a stock by using computer technology or human assumptions. In addition, if exploits did exist, they would be found and corrected to prevent future defrauding.

With the efficiency market hypothesis, the securities will always reflect the available public information. No system, tool, calculation, or individual investor has access to secret information that would help them generate a rate of return above others. Consequently, investors should always expect to receive a fair value for their securities.

To determine the direction of a stock, investors must be skilled at analyzing data, predicting stocks, and have the ability to comprehend statistics and understand the stocks industries. To achieve this, it takes an investor that is passionate and has the time to evaluate the market.

In addition to rationality, independent deviations from rationality, and arbitrage, t he efficiency market hypothesis makes the assumption that there are three levels of market efficiency’s. The three levels assume that the value of an investment should reflect all available information. Prices should change based only on publicly unexpected information. The hypothesis is considered a model based on how markets tend to work and not how they should work. The three levels of market efficiency include strong, semi-strong, and weak (Maguire, 2010; Ross, Westerfield, & Jaffe, 2013). The weak level of efficiency does not base it results on reliable data such as earnings, forecast, or company announcements. However, they are often random and based on mathematical assumptions relating to historical data. A market is considered semi-strong if it can be predicted by using publicly available information. Information that helps predict a market using a semi-strong efficiency level includes information regarding accounting statements, and historical data. The strong efficiency level uses all publicly and privately available information to determine a stocks value.

Insider trading behavior is affected by expected trading profits from private information, and potential litigation risk. Managers tend to avoid trading before company disclosures so that they may avoid litigation risk. To reduce the probability of litigation, managers provide higher quality disclosures before insider trading. Furthermore, to avoid litigation, insiders often avoid profitable trades before earnings announcements, but will trade after the announcement in an attempt to profit from their future earnings based on the announcement.

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