September 2023/2024

ATF 10103

Fundamental of Management

Individual Report

L4

Topic : McClelland Three Needs Theory

Submitted by:

Name Student I.D Program Phone Number

NURUL HIDAYAH BINTI TAMRIN A23A2608 SAR 011-18584768

Submitted to : Dr. Azlinda Shazneem Binti Md Shuaib

Due date : 9th January 2024 (Tuesday)

 TABLE OF CONTENT

Content Page

1.0 Introduction To Mcclelland Three Needs Theory 1-2

2.0 Mcclelland Three Needs Theory In Today’s Context 3-4

3.0 Related Examples Based On Mcclelland Three Needs Theory 5-6

4.0 Advantages And Disadvantages Of Mcclelland Three Needs Theory 7-8

5.0 Conclusion 9

References 10-11

Appendix 12-15
1.0 INTRODUCTION TO MCCLELLAND THREE NEEDS THEORY

David McClelland, a human motivation expert, joined the Harvard faculty in 1956 and lectured and
conducted research for the next 30 years. From 1962 to 1967, he was the Chair of the Department of
Social Relations. McClelland's research covered more than five decades and produced a significant
body of testing equipment, data, and theoretical models of human motivation and achievement.

The McClelland Three Needs Theory, developed by David McClelland in the 1960s, is a
psychological theory that drives human behavior in the workplace. According to the theory, individuals
have three fundamental needs: the need for Achievement (nAch), the need for Affiliation (nAff) and the
need for Power (nPow). McClelland claimed that these three demands play a critical role in molding an
individual’s motivation, behavior and success in a variety of professional and personal circumstances.
One trait is usually more dominant, but the other are present in an individual as well.

1.1 THE NEED FOR ACHIEVMENT (nAch)

The urge for achievement indicates an individual's incentive to perform duties, whether
self-given or allocated by others. Those who are driven by achievement actively seek out
situations and projects that allow them to demonstrate their abilities. They thrive on jobs that
are neither too basic nor too difficult. Tasks that do not present any challenge fall short of
satisfying their demand for recognition. Tasks outside of their comfort zone, on the other hand,
are viewed as posing an excessive risk, thereby impeding their quest of challenges. This trait
highlights the sophisticated approach of achievement-motivated individuals as they navigate
activities and initiatives in quest of meaningful acknowledgment and accomplishment. In the
workplace, organizations can find it hard to recognize those who are high in the N-Ach and
those who are not. People who need their efforts to be recognized by someone who is in a
position influential to them, not receiving the recognition they desire could cause them to
become dissatisfied and frustrated with their work or position. This can lead to a myriad of
problems in the job, and self-resentment and disapproval

1.2 THE NEED FOR AFFILIATION (nAff)

The desire to belong denotes a motivation that is profoundly founded in interpersonal ties and
relationships. Affiliation-driven people find meaning and fulfillment in the emotional
relationships they form with others. Individuals with a strong affiliation drive prefer toward
collaborative group settings at work, valuing the ability to deepen relationships through joint
efforts. Within group processes, individuals are invariably driven to develop and preserve
meaningful social relationships with others. Specifically, people tend to use approval cues to
create, maintain, and assess the intimacy of our relationships with other people. Notably, they
avoid circumstances that can result in rejection or uncomfortable boundaries within their
interpersonal relationships. This proclivity emphasizes the importance of meaningful
relationships and the emotional fabric that people who have a strong need for affiliation weave
into their personal and professional life.

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1.3 THE NEED FOR POWER (nPow)

The desire for power represents a motive that is deeply based in the need for authority and
control. Individuals driven by this need actively seek situations and relationships that allow
them to demonstrate their leadership talents and assume the major decision-making role. Many
power-motivated individuals flourish in circumstances that allow them to assert their influence
because they enjoy the dynamics of competition and argument. Individuals with a power-driven
perspective, unlike those motivated by success and affiliation, do not avoid high-risk
circumstances; rather, they actively seek them out as opportunities to demonstrate their
dominance and command over problems. Individuals driven by a desire for power have an
affinity for authority and a proclivity for negotiating high-stakes situations. McClelland was
inspired by Murray's research, and he continued to further develop Murray's theory by focusing
on this theory in regard to the human population. In McClelland's book The Achieving Society,
nPow helps explain an individual's imperative to be in charge. According to his work there are
two kinds of power, social and personal.

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2.0 MCCLELLAND THREE NEEDS THEORY IN TODAY’S CONTEXT

Organizations are continuously seeking the best ways to encourage employees and ensure they are as
productive as possible in order to assist them achieve their goals. McClelland's theory of needs
evaluates workplace motivation and outlines three primary staff needs: achievement, power, and
affiliation. Even though it's frequently seen as a component of a larger understanding of human
motivation in contemporary workplaces, recognizing these demands is still important in today's
environment.

2.1 THE NEED FOR ACHIEVEMENT (nAch)

Individuals with a high level of emotional needs for achievement want to be constantly
overcoming challenging and yet achievable tasks. They thrive on being slightly stretched and
on the feeling of reward they receive when they complete a deliverable. These individuals have
a moderate level of risk tolerance to the work they like to do. They know that if their activities
are too risky, they may fail or not receive their hit of achievement they desire. However, if they
are not risky enough, their achievements won’t feel truly rewarding.

Individuals with a high level of emotional needs for achievement often have a high level of
drive. They can be a great asset to a team when they are being well managed and things are
going well. When they are focused, they have the ability to produce a high volume of high
quality outputs. To keep them performing in their best, try to provide them with stimulation.
They need challenge, recognition and active management to ensure the stretch and leadership
attention they desire.

2.2 THE NEED FOR AFFILIATION (nAff)

An emotional desire to fit in and be liked is the outward manifestation of the need for affiliation.
High demand for affiliation individuals want a peaceful social atmosphere as well as
cooperative and amicable working relationships with others. They are often socially perceptive
and work towards maintaining effective social relationships and creating positive environments.
These individuals typically end up with fairly low levels of risk tolerance. Their desire for social
harmony means they do not want to “rock the boat” or take on activities that may upset people
or lead to conflict.

To help these individuals remain at their best, it is important to focus on the culture of the team
and to create a collaborative environment. This can be done in part by creating collaborative
goals or objectives, by building team relationships through things like team building activities
and by seeking to minimize conflict, or at least explain the benefits of conflict to these
individuals.

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2.3 THE NEED FOR POWER (nPow)

Individuals with a high level of emotional need for power want to be constantly competing with
directing, managing, and exerting influence over others. They thrive on winning in competitions
with others and the sense of increased status that winning brings them. These individuals
typically end up with high levels of risk tolerance. Their often highly competitive natures and
their need for ever increasing status means they may take ever increasing risks in effort to
increase their status and control. Individuals with a high level of emotional need for power are
often tenacious and resolute, willing and able to make and deliver on difficult decisions, and
willing to do what it takes to achieve their goals. Their needs and desires are aligned to those
of the team or organization, their drive for power can be a helpful tool in motivating them, and
others around them.

For those with a strong need for power, competition is a powerful motivator, and they place a
high importance on winning discussions and disputes. Their own standing and the
acknowledgment of their abilities are important areas for them as well. These people also
frequently exhibit discipline and a strong will. They also work hard to raise their own profile and
gain recognition.

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3.0 RELATED EXAMPLES BASED ON MCCLELLAND THREE NEEDS THEORY

Most individuals have dominant emotional needs. The emotional need which is dominant will help
shape an individual's feelings, actions and behaviors. It will also go some way towards shaping their
preferences in the working environment. Here are some related examples based onMcClelland Three
Needs Theory :

3.1 NEED FOR ACHIEVEMENT (nAch)

Elon Musk's leadership is characterized by his ability to dream big and set audacious goals. His
vision for a sustainable future on Earth and in space has led to the creation of transformative
companies like Tesla and SpaceX. Corporate leaders can learn from his emphasis on setting a
clear and ambitious vision, which inspires teams and fosters innovation. Musk is not just a
visionary; he's an innovator who pushes the boundaries of technology. From electric cars to
reusable rockets, his approach to innovation is relentless. Corporate leaders can take
inspiration from his commitment to fostering a culture of innovation within their organizations,
encouraging employees to explore new ideas and technologies.

Elon Musk's journey is marked by his relentless tenacity. He often works long hours, dedicating
himself fully to his projects. His work ethic and commitment serve as a valuable lesson for
corporate leaders. Tenacity, determination, and a strong work ethic are crucial qualities for
achieving ambitious goals.

3.2 NEED FOR AFFILIATION (nAff)

A strong demand for affiliation is highlighted by the amiable and pleasant personality of
comedian and talk show host Jimmy Fallon. As the host of "The Tonight Show Starring Jimmy
Fallon," he establishes a warm and friendly environment that helps viewers and famous guests
connect. His use of social media to interact with fans and post behind-the-scenes photos
highlights his desire for affiliation even more. Jimmy shows a sincere desire in fostering good
relationships with people by participating in charitable endeavors and partnerships outside of
the entertainment sector. Jimmy Fallon is a prime example of a person with a strong need for
affiliation because of his approachable and welcoming style. He always looks to build
relationships and spread happiness to a wide range of people.

Speaking about the need for affiliation is akin to saying that everyone aspires to belong to a
community in which members treat one another with respect. Jimmy is an excellent example of
how to treat everyone with respect, regardless of their differences. Creating a welcoming and
inclusive environment where everyone feels valued and significant is more essential than
simply being polite. By acting in this way, we foster good relationships and increase the
likelihood that we will be treated kindly and respectfully in return by others. Thus, showing
kindness and respect not only helps us form new friendships but also improves and elevates
the atmosphere at work or school for those involved.

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3.3 NEED FOR POWER (nPow)

The founder of Amazon, Jeff Bezos, is a great example of a person who has a high need for
power in the e-commerce and technological industries. Under Bezos' direction, Amazon
evolved from an online bookshop to a multi-industry worldwide behemoth. His lofty objectives,
like controlling the e-commerce industry and inventing ground-breaking technologies like
Amazon Web Services, reveal a strong desire for power and influence. Bezos's strategic
moves to broaden Amazon's influence and transform conventional retail environments are clear
examples of his quest for power, which also shows how a strong desire for power can fuel
business success and disruptive innovation.

It is well known that Bezos is a task-oriented and transformative leader. Bezos sought for and
continues to explore methods to become inventive in order to transform his firm. He is a
renowned leader with a track record of organizing and achieving goals creatively. A link is
established to better serve consumers between Bezos' long-term objectives and the demands
and desires of the general population. He had been able to contribute to the growth and
expansion of his organization throughout time because of his inventiveness and vision.

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4.0 ADVANTAGES AND DISADVANTAGES OF MCCLELLAND THREE NEEDS THEORY

The biggest challenge for any company is to constantly motivate its employees so that employees work
hard which in turn will help the company in achieving its objectives. McClelland theory is one of the
theories of motivation, according to this theory, at the workplace there are three major needs of
employees which are a need for achievement, need for power and need for affiliation.

According to McClelland's theory, organizations should assign difficult tasks to employees who fit the
need for achievement (nAch) matrix because they have a tendency to work hard to accomplish the
assigned goal. On the other hand, tasks requiring persuasion or the ability to influence others should go
to employees who fit the need for power (nPow) matrix. Lastly, employees who fit the need for affiliation
(nAff) matrix are the best candidates for tasks that require social interaction outside of the workplace.
Viewing the benefits and drawbacks of McClelland theory will help one learn more about this idea.

4.1 ADVANTAGES OF MCCLELLAND THREE NEEDS THEORY

4.1.1 Employees Are Given Task According To Their Needs

The main benefit of this theory is that it assigns tasks to employees based on their
needs, which aids in employee motivation. The main issue that people have at work is
that they don't always get the work they want, which leads to them working
half-heartedly, which is bad for both the individual and the company. The McClelland
theory solves this issue by first determining the needs of the employees and then
assigning jobs based on those needs.

4.1.2 No Scope of Any Excuse

Employees cannot hold the company responsible for their failure because they were
given the opportunity to choose their work, and if the company is providing work
profiles based on employee interests, then there is no room for justification. Put
succinctly, creating job profiles that meet individuals' needs removes the possibility that
workers may use this as a justification for failing to complete tasks.

4.1.3 Satisfied Employees

McClelland's Theory suggests that workers may get dissatisfied with their employers if
their job duties do not meet their personal demands. Put another way, businesses that
use McClelland's Theory aim to assign workers to positions that satisfy their unique
demands for authority, achievement, or connection. A happy workforce is a great asset
for the company, and this alignment helps to foster that satisfaction. The premise is
that satisfied workers who have their needs addressed have a favorable effect on the
organization's overall performance and productivity.

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4.2 DISADVANTAGES OF MCCLELLAND THREE NEEDS THEORY

4.2.1 Do Not Take Into Account the Basic Needs

The psychological demands for affiliation, authority, and achievement in the workplace
are the main topics of McClelland's Three Needs Theory. It doesn't specifically address
necessities like food and safety, in contrast to Maslow's Hierarchy of Needs. Although
McClelland's theory is useful in understanding motivation at work, it's important to
remember that people also have basic needs. Taking a holistic approach that takes into
account both theories yields a more thorough knowledge of human motivation.

4.2.2 One Gets Stereotype

People may encounter stereotypes if they are perceived as extremely motivated, as in

having a strong need for achievement. Even if individuals possess the necessary
talents, these prejudices may hinder their ability to advance into jobs where
establishing relationships or wielding influence is valued more highly. In layman's
words, it suggests that an individual may be unable to advance within the organization
not because they are unqualified, but rather because of preconceived notions or biases
regarding the kinds of positions that best meet their demands for motivation. A problem
with this would be that the individual would feel stuck in their profession and the
organization would miss out on utilizing everyone's abilities.

4.2.3 Difficult to Find Position Matching The Needs

After identifying its workforce requirements, a corporation may find that roles that better
meet the demands of its employees end up creating a dilemma for the company's
upper management. Hence for example, if there are 10 positions in the company for
people having a need for power but if the employees having a need for power are 20,
then the company will find it difficult to accommodate all the employees.

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5.0 CONCLUSION

According to David McClelland's Three Needs Theory, humans are driven by three basic needs:
affiliation, power, and achievement. Out of the three, achievement is the most important and the
theory's main focus. Because it may be applied in organizations to increase organizational
effectiveness and affect employee behavior, the theory has real-world applications. Tasks with
intermediate difficulty levels inspire people who are driven to succeed, who place a higher value on the
sense of accomplishment than on money or recognition, and who employ a variety of strategies to
overcome setbacks in order to reach their objectives.

McClelland's Three Needs Theory places a strong emphasis on the Need for Achievement (nAch),
which is defined as an individual's drive for success, pursuit of difficult objectives, and preference for
assignments involving personal responsibility. Although Ach can be a strong motivator, it's vital to take
into account its limitations. The complex nature of human motivation is oversimplified by McClelland's
theory, and measurement difficulties and cultural differences may have an impact on its application. In
practical terms, identifying and utilizing the Need for Achievement in organizational settings can lead to
improved worker performance and satisfaction; however, a comprehensive understanding of individual
and group behavior in the workplace requires a nuanced approach that takes into account a variety of
motivational factors.

The Need for Affiliation (nAff), is a fundamental human motive that drives people to seek out social
connections with others. It is a complex psychological concept that has been studied extensively in
psychology, and it plays a role in a wide range of human behaviors. People who have a high need for
affiliation tend to be more social and outgoing, and they place a high value on social connections. There
are several related concepts that are also studied in psychology, including attachment theory, social
support, and personality. By studying the need for affiliation, researchers can gain a deeper
understanding of human behavior and the role that social connections play in our lives.

The Need for Power (nPow) represents a person's desire to exert influence and take the lead. Although
this has advantages for leadership positions, there are drawbacks as well, such the possibility of
dictatorial conduct. Companies should be aware of this demand for power and use it morally to grow
leaders and maintain a balance that benefits the team's and the organization's overall well-being.
Establishing a dynamic and productive workplace requires striking a balance between power objectives
and ethical considerations.

McClelland’s theory of acquired needs has important implications for the motivation of employees.
Managers need to understand the dominant needs of their employees to be able to motivate them.
While people who have a high need for achievement may respond to goals, individuals high in their
need for affiliation may be motivated to gain the approval of their peers and supervisors and those with
a high need for power may attempt to gain influence over those they work with. Finally, those who have
a high drive for success may experience difficulties in managerial positions, and making them aware of
common pitfalls may increase their effectiveness.

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APPENDIX

David McClelland’s Picture

McClelland Three Needs Theory

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 Elon Musk, The CEO Of Tesla Motors

Jimmy Fallon, American Comedian And Television Host

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Jeff Bezos, Executive Chairman Of Amazon

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