McClelland’s Theory of Needs This theory of need was developed by David McClelland, and it looks at the three needs: Need for achievement (nAch): it is the drive to excel, to achieve in relationship toa set of standards The research done by McClelland and others focused primarily on nAch. They found that high achievers perform best when they perceive their probability of success as 0.5 i.e., having a 50-50 chance. They do not prefer getting success by pure chance and often dislike gambling with high odds. Similarly, they dislike tasks with high probability of success because it did not give them a chance to challenge their skills. This research concluded with the findings that when jobs have a high degree of personal responsibility and feedback and an intermediate degree of risk, high achievers are strongly motivated. Need for power (nPow): is the need to make others behave in a way they would not have otherwise. The need for power is required as a manager so the subordinates respect the instructions and tasks assigned to them. A high-power motive may be a requirement for managerial effectiveness. The individuals who are motivated by power have a high urge to be controlling. They want their ideas and views should dominate and thus, they want to lead. Individuals with greater power will perform better than those possessing less power. Successful and efficient managers usually turn out to be people with a high need for power. Need for affiliation (nAff): the desire for friendly and close interpersonal relationships. The individuals who are motivated by affiliation have an urge for a supportive and friendly environment. They perform better as a team and want to be liked by others. If an individual has a high need for affiliation, he cannot be a good manager as his need to be liked by others will hamper his objectivity. Two Factor Theory (motivation-hygiene theory) Frederick Herzberg, a behavioral scientist proposed the two-factor theory. According to him there are some job factors that result in satisfaction while there are other job factors that prevent dissatisfaction. Hygiene factors: The job factors which are essential for existence of motivation at workplace are called Hygiene factors. There is not a long-term positive satisfaction with these but if these factors are not present at the workplace, then they lead to dissatisfaction. These factors are also called dissatisfiers or maintenance factors as they are required to avoid dissatisfaction. Hygiene factors include: 1. Pay: The salary structure should be appropriate and reasonable. It must be equal and competitive to those in the same industry and in the same domain. 2. Fringe benefits: The employees should be offered healthcare plans, benefits for the family members. 3. Physical Working Conditions: The working conditions should be safe, clean, and hygienic. The equipment should be maintained and updated to industry standards. 4. Status: The employees’ status be familiar and retained. 5. Interpersonal relations: Relationship between the employee and his peers, superiors and subordinates should be appropriate and acceptable. 6. Job Security: The organization must provide job security to the employees. Motivational Factors: The motivational factors yield positive satisfaction and are inherent to work. They motivate the employee for a better performance. Employees find these factors intrinsically rewarding. 1. Recognition: The employees should be praised and recognized for their accomplishments. 2. Meaningfulness of work: The work itself should be meaningful, interesting and challenging for the employee to perform and to get motivated. 3. Responsibility: The employees must hold themselves responsible for the work. 4. Growth: the job role should provide the opportunity to grow for the employee, better their skills. 5. Advancement: the employee must get the chance to advance up the corporate ladder.