Nature, Theories and

Application of Motivations,
Needs and Values

Prepared By: Cyrus M. Reyes

• In essence, psychology is the study of the human “mind” and
behavior, generally through experiments, observations and
questionnaires, but can also include animal studies,
particularly ethology.

• The humanist concept of “mind” is broadly intended to refer

to conscious experience and intelligent thought but lacks a
clear-cut definition as a specific entity
• Human behavior is an inherently complex subject matter
which pertains to the manner and reasons behind people’s
actions.

• Of course, there are countless theories associated with human

behavior and various types of conduct.
 The The Social The Complex The
Economic Man Man Motivated
Man Man
 • The economic man
theory is the idea that
people make decisions
based on what they
think will maximize
their well-being and
bring them the most
The Economic Man financial gain.
Alternate name:
Homo economicus
 The Economic Man
Key Takeaways
• The economic man theory is the idea that people always
make rational decisions that are in their own self interest.
• The economic man theory provides a foundation for
understanding how people make financial decisions, and
it has been used to explain a wide range of economic
behaviors.
• One flaw with the economic man theory is that it
assumes a person always acts only for their self-interest.
In reality, people are also likely to make decisions based
on emotion or cognitive biases.
• For example, if you have the opportunity
to put $50 in savings or donate $50 to a
charity, economic man theory suggests
you’d put the $50 in savings because it
helps you the most financially. It’s the
“rational” optional of the two that would
maximize your self-interest.
 How the Economic Man Theory Works

• The economic man theory assumes that all

humans are motivated solely by self-interest,
which means they will always try to maximize their
wealth. It was first introduced by late economist
Adam Smith.3
• The economic man theory can be used to explain a
wide range of economic behaviors, including
consumer choice, labor supply, and financial
decisions.
• Another example of economic man theory
can be seen in the labor force. As an
employee, the “economic man,” one might
argue, would choose to work hours that
offer the highest pay or most benefits—
even if it means working more hours overall
—if the extra money earned is in the
employee’s best interest.
 Advantages of the Economic Man Theory

• The economic man theory describes

how humans have an innate drive to
better their current situation. The
“economic man” in you may be nudging
you to negotiate a raise at work, save
for retirement, build your net worth, or
other steps to better your situation.
 • With the passage of time, the advocates of
human relations school recognized that there is a
lot more to human behaviour than just being
social man economic and rational. Advocates of
this school considered the worker as a social
man.
• They recognized that man is a part of the social
group he is influenced by the social forces and
seeks satisfaction of the needs which are related
The Social to the maintenance of his social relationships.
Man • Eltan Mayo conceived the concept of the social
man when he carried out Hawthorne studies
during 1927-32.
Human beings are basically motivated by social needs
and all their efforts are directed towards getting this
satisfaction by maintaining relationships with others.

A human being is more responsive to the pressures and

sanctions of his social group than to the incentives and controls
of the management.

The amount of work to be done by a worker is not determined

by his physical capacity or by the management but by the social
norms.