Explain AMO theory.

What will be an ideal response?


Boxall and Purcell found an increasingly common "very basic theory of performance" being used, which they referred to as "AMO theory": 

P = f (A, M, O)

P is performance, which is specified to be a function (f) of three factors: A is ability,
M is motivation, and O is opportunity.
In other words, the AMO logic is that HR systems will be most effective when roles are designed to allow employees to be involved in decisions and have an opportunity to make an impact, when employee ability is developed through selective hiring and training and development, and when the compensation system motivates employees to act on their abilities and take advantage of the opportunity to make a difference.

Business

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