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Which theory of motivation highlights that our motivation sometimes depends on what happens to other people? What are the core arguments for why this is the case?

Our textbook mentions the following: “Research suggests that employees underestimate how powerful a motivator pay is to them.” Why do you think people potentially underestimate how motivatingpay is, but overestimate how satisfyingpay is?(hint: consider what we learned about 1) pay and job satisfaction and 2) pay and motivation)

Imagine you are a manager and you received the following email from your CEO: “I’ve just returned from a workshop on motivation, and I got the impression that the most important motivating factor is goal setting. Thus, I think the key to dealing with issues of employee motivation is to focus on setting very high goals that most employees will not be able to accomplish. This should give employees the motivation they need to do a good job, which should benefit both them and the organization.” How would you respond to the CEO?