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A presentation

on
McClelland's Theory of Needs
Presenters:
Pawan Bhatta
Suman Ojha

Subject: Entrepreneurship

Kantipur International College


Kathmandu, Nepal
Overview of Presentation
• What is Motivation ?
• Introduction : McClelland's Theory of Needs
• Need for Achievement
• Need for Power
• Need for Affiliation
• Implications in Entrepreneurship

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Motivation
• It is the inner state that causes an individual to behave in a way that
ensures the accomplishment of some goal.
• According to Stephen P Robbins: Motivation is defined as the
willingness to exercise high levels of effort towards organizational
goals, conditional by the effort ability to satisfy some individual needs.

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Introduction: McClelland’s Theory of Needs
• Proposed by David McClelland
• David McClelland proposed that an individual’s specific needs are
acquired over time and are shaped by one’s life experience.
• Also called Acquired need theory
• The theory states three basic needs:
1. Need for achievement
2. Need for power
3. Need for affiliation

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Need for Achievement
• The drive to excel, to achieve in relation to a set of standards, and to
strive for success.
• People with high need for achievement:
• Avoids low-risk and high-risk situations.
• They are not gamblers
• Prefer Moderate- risk situations.
• Individuals high on need for achievement are well suited to positions
such as sales where there are explicit goals, feedback is immediately
available, and their effort often leads to success (Harrell & Stahl,
1981; Trevis & Certo, 2005; Turban & Keon, 1993).
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Need for Power
• The need to make others behave in a way that they would not have behaved
otherwise.
• People with high need for power:
• Want to control and influence others.
• Are competitive in nature.
• Two types : Personal and Institutional.
• May be destructive of one’s relationships if it takes the form of seeking and
using power for one’s own good and prestige.
• Need for power is viewed as important for effectiveness in managerial and
leadership positions (Mcclelland & Burnham, 1976; Spangler & House,
1991; Spreier, 2006).
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Need for Affiliation

• The desire for friendly and close interpersonal relationships.


• People with high need for affiliation:
• Seek acceptance and friendship.
• Are cooperative.
• Are liked and accepted by others.
• Suitable in jobs and occupations requiring frequent interpersonal
interaction, such as public relation officer or teacher.

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Implications in Entrepreneurship
• Theory of High Achievement in entrepreneurship.
• McClelland identified 2 characteristics of entrepreneurship:
-Doing things in a new and better way.
-Decision making under uncertainty.

• He stressed that people with high achievement orientation (need to


succeed) were more likely to become entrepreneurs.
• Such people are not influenced by money or external incentives.
• They consider profit to be a measure of success and competency.

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Implications in Entrepreneurship
• McClelland’s theory of acquired needs has important implications for
motivating employees.
• Someone who has high need for achievement may respond to goals.
• Those with high need for affiliation may be motivated to gain the
approval of their peers and supervisors.
• Whereas those who have high need for power may value gaining
influence over the supervisor or acquiring a position that has
decision-making authority.
• When it comes to succeeding in managerial positions, individuals
who are aware of the drawbacks of their need orientation can take
steps to overcome these drawbacks.
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Summary

Affiliation
Achievement Desire for
Drive to success interpersonal
relationships

Power
Need to influence
behavior of
others

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Conclusion

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References
• http://open.lib.umn.edu/principlesmanagement/chapter/14-3-need-based-
theories-of-motivation/
• http://www.netmba.com/mgmt/ob/motivation/mcclelland/
• https://study.com/academy/lesson/acquired-needs-theory-need-for-
acheivement-power-affiliation.html
• Johnson, B. R. (1990). Toward a Multidimensional Model of
Entrepreneurship: The Case of Achievement Motivation and the
Entrepreneur. Entrepreneurship Theory and Practice, 14(3), 39-54.
doi:10.1177/104225879001400306
• http://www.managementstudyhq.com/mcclellands-theory-of-needs-power-
achievement-and-affiliation.html

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