Arousal can be defined as alertness or a physiological state of readiness.
So what does that have to do with performance?
There are four main theories which describe the Arousal-Performance relationship. They are as follows:
Drive Theory
Clark Hull's drive theory (1943) as modified by Spence and Spence (1966), predicts that performance (P) = habit (H) multiplied by drive (D):
P = H x D.
Drive is refering to arousal. Habit is refering to the dominance of correct or incorrect responses.
As arousal increases for an athlete who is experienced and has a dominance of correct responses, then the better performance is. As arousal increases for an athlete who is inexperienced or has a dominance of incorrect responses, then the worse performance is.
Inverted-U Hypothesis
According to this hypothesis, as arousal increases, performance increases to a point => after that point, further arousal decreases performance. In other words, peak performance is at a maximal point when arousal is at a moderate level. The Yerkes-Dodson Law explains how the most effective point of arousal is lower for more difficult tasks, while higher amounts of arousal are needed for maximum performance of simple tasks.
Individual Zone of Optimal Functioning
This theory by Hanin (1978) is similar to the Inverted-U, except that there is a zone of maximum performance instead of just a single point.
Catastrophe Theory
This model suggested by Hardy and Fazey (1976) concludes that the decrement in performance after the point of over-arousal is dramatic, not gradual as proposed by other theories.