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AMO Theory: Ability, Motivation & Opportunities

Lesson Transcript
Instructor: Amber Dejmal
AMO is a theory that seeks to explain what characteristics lead to high performance in the workplace. Explore each of the components of AMO (ability, motivation, and opportunities) and how they can be implemented to organize a productive workforce. Updated: 12/13/2021

What Is AMO Theory?

You are an organizational leader in a Dutch general hospital, and you are conducting a study to find examples of high performance work practices that your organization is currently using. After conducting the study, you found out that employees in your building perform well. Using the AMO theory, you decide to investigate what causes high performance at your company.

The AMO theory suggests that there are three independent work system components that shape employee characteristics and contribute to the success of the organization. According to the theory, organizational interests are best served by a system that attends to the employees ability, motivation, and opportunity (AMO).

What you found aligns well with the AMO theory in that your company:

  • Increases the ability of the employee
  • Motivates employees
  • Provides opportunities to contribute to the company

Your company utilizes the AMO theory to provide organizational leaders with a management tool that can impact performance. If any one of the three characteristics is missing, performance is likely to be inhibited, but if all three are present, then performance is likely to be enhanced. High employee performance is a strong factor that contributes to organizational success.

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  • 0:01 What Is AMO Theory?
  • 1:18 Ways to Increase the…
  • 1:48 What Causes Motivation?
  • 2:32 What Promotes Opportunity?
  • 3:06 Lesson Summary
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Ways to Increase the Employees' Ability

The ability of the employee is the knowledge and skills the employee has to do the job. The leaders in your hospital are doing a great job of assessing the employees' abilities during the recruitment and selection process. After an employee is hired, your company focuses on giving the employee proper training, learning, and development tools right from the beginning. Your company thrives in performance because it pays special attention to improving an employee's abilities throughout the hiring and training process.

What Causes Motivation?

Along with the ability to do the work, an employee also needs to have motivation. Motivation is influenced by internal and external rewards, performance reviews, feedback, career development, employment security, and balance between work and life. Putting emphasis on what influences motivation will produce positive performance outcomes.

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