David McClelland's theory of needs, introduced in the 1960s, expands on Maslow's hierarchy and outlines three key motivational needs: achievement, power, and affiliation. The theory emphasizes understanding individual drivers to effectively motivate employees, suggesting tailored managerial approaches based on these needs. For achievement-oriented individuals, offering challenges and feedback is crucial, while power-seekers benefit from leadership roles, and those motivated by affiliation prefer cooperative tasks and personal recognition.