Need theory, created by psychologist David McClelland, is a motivational model that attempts to explain how the needs for achievement, power, and affiliation affect the actions of people from a managerial context. This model was developed in the 1960s soon after Maslow's hierarchy of needs in the 1940s. McClelland stated that we all have these three types of motivation regardless of age, sex, race, or culture. The type of motivation that each individual is driven by is changed by life experiences and the opinions of their culture. This need theory is often taught in classes concerning management or organizational behavior.
Need for achievement
People who are achievement-motivated typically prefer to master a task or situation. They prefer working on tasks of moderate difficulty, prefer work in which the results are based on their effort rather than on anything else, and prefer to receive feedback on their work. Achievement based individuals tend to avoid both high risk and low risk situations. Low risk situations are seen as too easy to be valid and the high risk situations are seen as based more upon the luck of the situation rather than the achievements that individual made. This personality type is motivated by accomplishment in the workplace and an employment hierarchy with promotional positions.
Need for affiliation
People who have a need for affiliation prefer to spend time creating and maintaining social relationships, enjoy being a part of groups, and have a desire to feel loved and accepted. 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. This person favors collaboration over competition and does not like situations with high risk or high uncertainty. People who have a need for affiliation work well in areas based on social interactions like customer service or client interaction positions.
Need for power
This motivational need stems from a person's desire to influence, teach, or encourage others. People in this category enjoy work and place a high value on discipline. The downside to this motivational type is that group goals can become zero-sum in nature, that is, for one person to win, another must lose. However, this can be positively applied to help accomplish group goals and to help others in the group feel competent about their work. A person motivated by this need enjoys status recognition, winning arguments, competition, and influencing others. With this motivational type comes a need for personal prestige, and a constant need for a better personal status.
Effect on management
McClelland said that people usually contain a combination of these three types of motivation and proposed that those in the top management positions should have a high need for power and a low need for affiliation. He stated that people with a high need for achievement will succeed best when given projects with attainable goals and although individuals with a need for achievement can make good managers, they are not suited to being in the top management positions. He also believes that people with a high need for affiliation may not be good top managers but will be team players and are best suited for a cooperative work environment.