THeories based on NEEDS given by McClelland"Three Needs Theory" & Alderfer"ERG Theory".

1. Motivational Theory:
McClelland Three Needs theory
&
Alderfer’s ERG Theory
Presenting by: Roshani gupta

2. McClelland’s Theory of Needs
(Power, Achievement, and Affiliation)
 David McClelland was an American Psychologist who developed his theory of needs or Achievement Theory of
Motivation which revolves around three important aspects, namely, Achievement, Power And Affiliation.
 McClelland’s theory of needs is one such theory that explains this process of motivation by breaking down what
and how needs are and how they have to be approached.
 This theory was developed in the 1960s and McClelland points out that regardless of our age, sex, race or
culture, all of us possess one of these needs and are driven by it. This theory is also known as the Acquired
Needs as McClelland put forth that the specific needs of an individual are acquired and shaped over time through
the experiences he has had in life.
 Psychologist David McClelland advocated Need theory, also popular as Three Needs Theory. This motivational
theory states that the needs for achievement, power, and affiliation significantly influence the behavior of an
individual, which is useful to understand from a managerial context.

4. NEED FOR ACHIEVEMENTS
(n-ach)

5. Need For Achievement :
 The need for achievement as the name itself suggests is the urge to achieve something in what you do.
 For Example: If you are a lawyer it is the need to win cases and be recognized, if you are a painter it is the need
to paint a famous painting.
 It is the need that drives a person to work and even struggle for the objective that he wants to achieve.
 People who possess high achievement needs are people who always work to excel by particularly avoiding low
reward low-risk situations and difficult to achieve high-risk situations. Such people avoid low-risk situations
because of the lack of a real challenge and their understanding that such achievement is not genuine. They also
avoid high-risk situations because they perceive and understand it to be more about luck and chance and not
about one’s own effort.
 The more the achievements they make the higher their performance because of higher levels of motivation.
 These people find innovative clever ways to achieve goals and consider their achievement a better reward than
financial ones. They take calculated decision and always appreciate feedback and usually works alone.
 The individuals motivated by needs for achievement usually have a strong desire of setting up difficult objectives
and accomplishing them. Their preference is to work in a results-oriented work environment and always
appreciate any feedback on their work. Achievement based individuals take calculated risks to reach their goals
and may circumvent both high-risk and low-risk situations.

7. NEED FOR POWER
(n-pow)
“It is the desire to control other and influence their behavior”

8. Need For Power:
 The need for power is the desire within a person to hold control and authority over another person and influence
and change their decision in accordance with his own needs or desires. The need to enhance their self-esteem and
reputation drives these people and they desire their views and ideas to be accepted and implemented over the
views and ideas over others.
 These people are strong leaders and can be best suited to leading positions. They either belong to Personal or
Institutional power motivator groups.
 If they are a personal power motivator they would have the need to control others and an institutional power
motivator seeks to lead and coordinate a team towards an end.
 The individuals motivated by the need for power have a desire to control and influence others.
 Competition motivates them and they enjoy winning arguments. Status and recognition is something they aspire
for and do not like being on the losing side.
 They are self-disciplined and expect the same from their peers and teams. They do not mind playing a zero-sum
game, where, for one person to win, another must lose and collaboration is not an option. This motivational type
is accompanied by needs for personal prestige, and better personal status.

9. Need for Power are Characterized by:
i. A desire to influence and direct somebody else.
ii. A desire to exercise control over others.
iii. A concern for maintaining leader-followers relation.

10. NEED FOR AFFILIATION
(n-affil)
“Desire for friendly and warm relationship with
others.”

11. Need for Affiliation:
 The need for affiliation is the urge of a person to have interpersonal and social relationships with others or a
particular set of people.
 They seek to work in groups by creating friendly and lasting relationships and has the urge to be liked by others.
They tend to like collaborating with others to competing with them and usually avoids high-risk situations and
uncertainty.
 The individuals motivated by the need for affiliation prefer being part of a group. They like spending their time
socializing and maintaining relationships and possess a strong desire to be loved and accepted.
 These individuals stick to basics and play by the books without feeling a need to change things, primarily due to
a fear of being rejected.
 People in this group tend to adhere to the norms of the culture in that workplace and typically do not change the
norms of the workplace for fear of rejection.
 Collaboration is the way to work for the competition remains secondary. They are not risk seekers and are more
cautious in their approach.
 These individuals work effectively in roles based on social interactions, for instance, client service and other
customer interaction positions.
 The need for affiliation in many ways is similar to Maslow's social needs.
 He also opined that those in top level management positions should have a high need for power and
a low need for affiliation.

12. High need for affiliation have the following characteristics:
i. They have a strong desire for acceptance and approval from others.
ii. They tends to conform to the wishes of those people whose friendship and companionship they
value.
iii. They value the feeling of others.

13. Limitations:
 Need and satisfaction of needs is a psychological thing. Sometimes
even the person may not be aware of his own needs. In such a case, it
will be difficult for the manager to understand the employee’s need.
 There is no direct cause and effect relationship between need and
behavior. One particular need may cause different types of behavior in
different persons. On the other hand, a particular individual behavior
may be the result of different needs.
 The physiological and safety needs are more important as compared to
McClelland’s needs.

14. Using the Theory:
 McClelland’s theory can be applied to manage the corporate teams by being identifying and categorizing every
team member amongst the three needs. Knowing their attributes may certainly help to manage their expectations
and running the team smoothly.
 Step 1: Identify the Motivational Needs of the Team
Examining the team to determine which of the three needs is a motivator for each person. Personality traits and
past actions can help in this process.
 Step 2: Approaching Team According to Their Need type
Based on the motivating needs of the team members, alter your leadership style to assign projects according to
the type of the need of each individual team member. Challenging projects would definitely be a part of a work
portfolio of someone who enjoys power while relatively simpler projects go to the kitty of someone derived from
affiliation..

15. Conclusion:
 McClelland’s theory is very useful in helping managers identify how they can motivate individuals to
perform better.
 According to him all individuals posses all of these needs however one of them is more dominant.
 McClelland's theory allows for the shaping of a person's needs.
 Training programs can be used to modify one's need profile.

16. Alderfer’s ERG theory:
 Clayton Alderfer was an American psychologist who held academic posts at
Yale and Rutger.
 He’s known for his study of workplace race relations – and for his rebuilding of
Maslow’s
 famous pyramid. Let’s have a closer look at Alderfer’s motivational model,
1969’s ERG theory.

17. The Pyramidal Form:
 Presented in Pyramidal Form, with the most essential needs at the bottom.
 Structure of human needs must start at the lower, most essential level, and that higher “structures”
can be achieved only when the base is “solid”.
Growth
Relatedness
Existence

18. Need for EXISTENCE:
 We hope that our work will satisfy our Existence needs, that it will provide us a salary that buys
food, clothing, transportation and other things we need to exist in our culture.
 physiological and safety needs (such as hunger, thirst and sex).

19. Need for Relatedness:
 social and external esteem (involvement with family, friends, coworkers and employers).
 Does the occupation help one feel like one is a part of its development? If not, the job maybe
helping one feel alienated.
 An employee desire to maintain important interpersonal relationships with pears, superiors and
subordinates in work context can be termed as relatedness needs.

20. Need for Growth:
 Change for better growth.
 internal esteem and self-actualization (the desire to be creative, productive and to complete
meaningful tasks).
 Employees tend to seek employment that will continue to help them grow.

21. ERG Theory for Predication of job Satisfaction:
1. Will this occupation satisfy my needs for material goods, physical safety, comfort, security and
longevity?
2. Will it help me feel that I am part of a family, part of a culture, contributing in an appropriate
manner, and appreciated fir what I do?
3. Will it give me opportunities to change, to grow over my lifetime, becoming more of the person I
want to be?

22. Similarities and difference between Maslow’s and
Alderfer’s:
 Similarities
 Growth: Self-Actualization,
External Esteem Needs.
 Relatedness: Internal Esteem Needs, Social
Need.
 Existence: Safety Needs, Physiological Needs.
 Differences:
 Alderfer’s ERG theory demonstrates that
more than one need may motivate at the
same time.
 The ERG theory also accounts for differences
in need preferences between cultures better
than Maslow’s Need Hierarchy.
 Alderfer’s explain about Frustration
Regression Theory.
 ERG is like IRON MAN because of it
flexicibilty and Maslow’s is like HULK because
of it rigidness.

23. Implications:
 1. Existence: Employees will be happy only when their basic needs are satisfied. Safety is a basic
need of an employee and if he does not feel safe in his workplace then he will not be able to
concentrate on his work.
 2. Relatedness: Every human being wants to have smooth relationships and if an employee is unable
to connect with his co-workers, peers or superiors in the PAGE 15 workplace it will negatively
impact his work performance levels. The Frustration Regression Principle then will set in and he will
try to leave the workplace as early as possible to have a more positive relationship with his family.
 3. Growth: Every employee needs to find growth opportunities as it will motivate him to do better.
Suppose an employee has been working in the same position at the same salary for a few years then
the position and work will not motivate him to go the extra mile. But if he is being praised for hard
work and gets recognition for the same then it will motivate him to make extra efforts.

24. Conclusion:
 ERG Theory of motivation by Alderfer is a simple, flexible, and condensed version of Maslow’s
Theory. This relatable and clear theory can help the management to look at individual priorities and
plan employee strategies accordingly. This will work in favor of an organization as it will result in
better employee engagement and higher employee retention.

25. Thankyou for listening me…… . .