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Temporal Motivational Theory (TMT) focuses on the integration of commonalities between four motivational theories. The four theories TMT links are picoeconomics, expectancy theory , cumulative prospect theory and need theory. TMT looks to address the issue of an overabundance of motivational theories where research has hindered the progress of our understanding in the motivational field. TMT does not look to merge all aspects of the four theories that it concerns; instead it focuses on the strong commonalities that link them. The most prominent of these is time as a motivational factor.

History of Temporal Motivational Theory
TMT was developed by Dr. Piers Steel of the University of Calgary. The main objective of the theory was to address several calls for an integration of the foremost theories on motivation. Many experts across the disciplines of decision-making and motivation had been calling for a more integrated approach to the research that was currently available. One of the key issues identified was that many available theories were inadequate when applied to real life situations. Steel argues that while strong, even the four theories he has focused on are not sufficient when used in isolation. The four theories of picoeconomics, expectancy, cumulative prospect and need were chosen for consolidation due to their common foundations.

Picoeconomics
First coined by George Ainslie, Picoeconomics is also known under the term Hyperbolic Discounting. In essence, Picoeconomics relates how we have a stronger tendency to prefer immediate payoffs versus situations where the payoff will come at a later time. In a motivational context, this translates to us putting off tasks that will only provide rewards in the distant future in favor of tasks that will provide immediate satisfaction. Ainslie has also ventured to describe Picoeconomics through the use of an equation where Utility is the result of Rate multiplied by Amount and divided by Delay. Utility is the course of action that is desired. Rate indicates the expectancy that an action will lead to a reward, Amount is what will actually be received and finally Delay is the amount of average time the reward will take to be paid out. Ultimately, Steel notes that one of the main links from Picoeconomics is that what we plan today does not always result in action tomorrow.

Expectancy Theory
First introduced by Victor H. Vroom in 1964, Expectancy Theory focuses on how we will choose an action based on what we expect the outcome of that action to be. Expectancy Theory has also been described as expectancy X value theory. This focuses on two main aspects, which are first, what the probability is that a certain outcome will be achieved and second what the value is of the expected outcome.

Cumulative Prospect Theory
Cumulative prospect theory (CMT) was introduced in 1992 by Amos Tversky and Daniel Kahnerman. Closely related to expectancy theory, CMT focuses on how we will think of outcomes relative to a specific reference point. Specifically, value is examined relative to what certain outcomes will look like when compared to a specific baseline. An important aspect of CMT is that we tend to place more emphasis on extreme but less likely events compared to average events.

Need Theory
Henry Murray’s system of needs today has a close tie to personality theory and decision-making. Today, the three needs that have been identified as being fundamental are the need for achievement, the need for affiliation and the need for power. It focuses on how personality traits are often an indication of the behavioral expression of needs. For example, a person may be more extraverted due to their need for affiliation and need for achievement. Needs are said to be the driving force behind why we do what we do.

Temporal Motivational Theory
TMT explains motivation in how it is affected by value and expectancy, how it can be weakened by delay and finally how it is influenced by rewards and losses.

Fundamentals of TMT
The first of the fundamental elements of TMT is value, which is present in all four source theories that TMT is based on. Value is important as it represents how much satisfaction is linked to a certain outcome. The value attributed depends on both situational and individual differences. The second aspect is expectancy, which can be linked to all supporting theories apart from picoeconomics. Expectancy links to how we perceive the likelihood of certain outcomes, and how we tend to underestimate events that have a higher probability of occurring. Time, the third component is linked to picoeconomics and need theory and is broken into two parts. First, there is the sensitivity that we have to time in the form of delay. This can also be viewed as our impulsiveness. The second aspect of time is actual delay itself. This relates to how long it will take for an outcome to occur. Steel notes in his research that when an event becomes closer in time, its influence on our actions increases. Finally there are losses and gains, which are present in cumulative prospect theory and need theory. Essentially, this relates to TMT in the sense that negative and positive perception of an outcome will also affect the first three components of value, expectancy and time in addition to personal differences.

Hierarchical Approach
Steel believes that the benefit of TMT is that is allows each fundamental theory to be arranged in a collaborative hierarchical manner, where the strongest components of each can contribute to motivational analysis. Together these building blocks provide a much stronger platform than they do on an individual basis.

Group Behavior
TMT can be applied to the study of group behavior in the same way that individual level and decision-making theories can. This is particularly relevant to the concept of groups forming pre-commitments but then giving into immediate temptation at the expense of a longer-term goal. It also relates to hyperbolic discounting in the sense that the work pace of a group increases as a deadline approaches.

Job Design
TMT seeks to build on past research in the job design realm to consider that motivation in the work place is correlated to understanding the underlying theories of what drives our actions. Ultimately, TMT helps identify that in recognizing our propensity to have more affiliation to immediate satisfaction in turn putting off longer-term goals, we can devise a workplace that builds a setting that supports the achievement of these distant goals. For example, in the workplace, the Internet plays the role of providing short-term satisfaction at the expense of longer term workplace and career goals. TMT helps explain how active control of access to these distractions can in turn affect workplace productivity and overall job happiness. The needs based component of TMT can also be a powerful tool in determining how individuals can be motivated in the workplace. Understanding how needs can be met in a certain role can have a significant impact on the motivation of the employee in that role.

Stock Market Behavior
TMT is linked to stock market activity through the prospect theory in that studies have shown that investors on average are more risk adverse. There is also a link via temporal discounting in the sense that investors attribute more importance to short term economic developments than to longer-term outcomes. Bad business news can have an immediate and often very negative affect on share price, triggering mass selling activity with little regard for the longer future outlook of the particular stock.

Goal Setting
Goal setting, most recently reviewed by Locke and Latham, is supported by TMT through two features. These are the principle of diminishing returns and temporal discounting. The basis of goal setting theory is to separate a larger goal into smaller attainable subgoals, which ties directly to the two TMT principles. With respect to the law of diminishing returns, by creating subgoals, each goal only has a value that is slightly less than the original goal that we set overall. Goal setting allows for maximum motivational attention, with the ability for subgoals to be completed rapidly with immediate satisfactory rewards. TMT also considers two aspects that moderate the effectiveness of goal setting, goal difficulty and goal proximity. The concept of motivation arising from completing a goal that is more difficult can be linked to TMT through the concept of value. Goal proximity is linked by the application of temporal discounting, and that setting subgoals in which outcomes are closer will in turn increase motivation.