First diagnose whether the issue is motivation, clarity, or capacity. Each requires a different intervention. Do not assume it is always about morale.
Strong answers show empathy and action: understanding the root cause (overwork, unclear direction, interpersonal conflict), addressing it directly, celebrating small wins, removing blockers, and protecting the team from external pressure. Best candidates distinguish between motivation problems and skill/resource problems.
Tests leadership and emotional intelligence. PMs who cannot motivate teams rely on authority, which does not scale. Look for genuine care and practical solutions, not just cheerleading.