Handy’s motivational calculus is a ‘process’ theory of motivation. Handy argued that there are several factors that affect whether an individual will be motivated at work.

• The individual’s needs. An individual works in order to satisfy certain needs. These needs vary from one individual to another. The nature of an individual’s needs can vary and the strength of their needs can also vary.
• Rewards and the satisfaction of needs. Another key factor is whether the individual considers that the rewards or potential rewards from working will lead to the satisfaction of those needs. Work may provide rewards that satisfy needs wholly, partially or perhaps not at all.
• The link between effort and reward. A third key element in Handy’s calculus is the individual’s perception of whether putting in more effort at work (being more motivated) will have an effect on results, and whether achieving these results will lead to the rewards.