Motivational Theories: Other Theories (DP IB Business Management)

Revision Note

Lisa Eades

Written by: Lisa Eades

Reviewed by: Steve Vorster

McClelland’s Acquired Needs Theory

  • McClelland's Acquired Needs Theory focuses on the needs that individuals develop over time

    • It explains how these needs influence their motivations and behaviour

  • People have three acquired needs that drive their actions and choices in the workplace and in life

A Summary of McLelland's Acquired Needs

Type of Need

Achievement Need (nAch)

Affiliation Need (nAff)

Power Need (nPow)

Motivations

  • Desire to excel & achieve challenging tasks

  • Setting & achieving personal goals

  • Forming positive relationships

  • Being happy within the workplace

  • Desire to influence & control others/situations

  • Bring out the best in others/teams

Behaviours

  • Seek success and take calculated risks

  • Appreciate feedback on their performance

  • Enjoy tasks that require problem-solving

  • Driven by a sense of accomplishment

  • Seek approval, acceptance and social interaction

  • Avoid conflict

  • Prioritise harmony in their interactions

  • Desire for cooperation and collaboration

  • Seek leadership positions

  • Enjoy being in control of their environment

  • McClelland identified two types of power needs

    • Personal power is the desire to control others

    • Institutional power is the desire to influence and shape organisations/systems

  •  The relative strength of these needs varies among individuals

  • They can be developed over time through life experiences, upbringing and cultural influences

  • Understanding individuals' dominant need can help employers tailor their approach to employee motivation and management

Strengths of McLelland's acquired needs theory

  • The model is easy to understand & apply

    • Helps managers to motivate employees in various situations

  • Recognises that people have varying needs & motivations

    • Managers can create more effective motivational strategies

  • Based on extensive research

    • McClelland's research was conducted in various cultural contexts so it can be applied in different settings

Weaknesses of McLelland's acquired needs theory

  • Does not account for the complexity of human behaviour

    • Can be influenced by a wide range of personal and environmental factors

  • The model may oversimplify workers' motivations

    • People often have a combination of the three needs

  • Limited evidence supports the specific needs identified in the theory

    • Achievement, affiliation and power are not universally agreed upon as the primary drivers of behaviour

Deci and Ryan’s Self-determination Theory

  • Deci and Ryan's theory describes why people do what they do

    • It is concerned with understanding human motivation and the factors that drive individuals to engage in activities

    • Humans have three basic psychological needs that allow them to achieve personal growth

Deci & Ryan's 3 Basic Psychological Needs

Autonomy

Competence

Relatedness

  • The need to have control and make choices in our work and personal lives

  • The need to feel capable and effective in what we do, inside and outside of work

  • The need to connect with others and feel a sense of belonging in each aspect of our lives

  • These three needs are crucial for intrinsic motivation because they allow people to feel valued and fulfilled

    • This leads to greater well-being and sustained engagement both within and outside of the workplace

    • If employers understand these needs they can develop staff effectively

    • They may also be able to encourage staff to make positive changes for themselves 

Strengths of Deci & Ryan's self-determination theory

  1. Adaptability

    • Recognises that not all individuals are motivated in the same way

    • Can be adapted to account for variations in motivation across different cultures

  2. Can be applied to different situations

    • It has been used widely in business, education management, sports coaching and healthcare

  3. Backed by research

    • Numerous studies have demonstrated its validity and relevance

Weaknesses of Deci & Ryan's self-determination theory

  1. Potential cultural bias

    • Its origins are in Western psychology

    • May not fully account for cultural variations in motivation between regions

  2. Overemphasis on intrinsic motivation

    • Downplays the significance of extrinsic motivators such as financial incentives

  3. Lack of clear measurement tools

    • Difficult to assess what motivates individual employees as the three psychological needs are internal

Equity Theory

  • John Adams's equity theory explains how people perceive and react to fairness in their personal and working relationships

Diagram: Adams' equity theory in the workplace

Equity is achieved when employees perceive that their inputs are equal to their outputs and are comparable with those of colleagues
Equity is achieved when employees perceive that their inputs are equal to their outputs and are comparable with those of colleagues
  • In the workplace Individuals strive to maintain a sense of fairness and balance

    • They do this by comparing their inputs (contributions made by the employee) to their outputs (rewards they receive)

    • Employees want this ratio to be fair

      • Contributions and rewards should be roughly equal to those of colleagues

      • Rewards should fully compensate the efforts the employee makes

  • There are three possible scenarios in equity theory

Under-Reward

Equity

Over-Reward

  • Individuals feel that they are giving more than they are receiving in comparison to colleagues

  • They may feel under-rewarded and unfairly treated

  • This can lead to feelings of frustration or dissatisfaction

  • Individuals perceive a balance between their inputs and outcomes

  • They feel that the relationship is fair and just

  • They are satisfied and content

  • Individuals believe that they are receiving more than they are giving

  • They may feel guilty or indebted

  • This can lead to discomfort and a desire to restore fairness

 Restoring equity in the workplace

  • To restore equity in the workplace individuals may take various actions

    • Renegotiate terms and conditions of employment

    • Adjust their contributions by making more/less effort

    • Seek new opportunities that provide a fairer balance of inputs and outcomes

  • Businesses may take steps to ensure workers perceive business systems as fair by

    • Communicating better in recruitment and promotion policies

    • Clarifying pay and reward systems

    • Providing training and development opportunities

Strengths of Adams's equity theory

  1. Easy to understand

    • Most people have an inherent sense of fairness and grasp the concept of equity

  2. Recognises individual differences 

    • What one person perceives as equitable may not be the same for another

  3. Highlights the importance of social comparisons

    • People often compare their situation to others
       

Weaknesses of Adams's equity theory

  1. It is subjective

    • What one person considers fair may differ from another's perspective

  2. Ignores other influences on behaviour

    • Factors such as personal values, intrinsic motivation and organisational culture also influence behaviour

  3. Over-simplification

    • Real-life working scenarios often involve variables and factors that Equity Theory does not consider

Examiner Tips and Tricks

Don't confuse equity with equality

Equity is fairness. Employees may be paid different rates for very good reasons such as experience, skills or qualifications

This is entirely fair

Equality would mean the same rate of pay for all staff, regardless of competence

This would not be fair at all

Expectancy Theory

  • Vroom's Expectancy theory seeks to explain why people make choices and behave in specific ways

  • It suggests that motivation depends on these three factors working together

    • Expectancy is the belief that effort leads to performance

    • Instrumentality is the belief that performance leads to outcomes

    • Valence is the value or desirability of those outcomes

Diagram: Vrooms expectancy theory 

Vroom suggests that motivation depends on the three factors of expectancy, instrumentality and valence
Vroom suggests that motivation depends on the three factors of expectancy, instrumentality and valence

The Three Components of Vroom's Expectancy Theory

Expectancy

Instrumentality

Valence

  • Effort will lead to successful performance

    • If a worker believes that hard work will result in achieving a specific goal, they are likely to be motivated to put in that effort

  • Successful performance will be rewarded

    • If a worker is confident that hard work will lead to a desirable outcome or reward, they are more likely to be motivated to perform well

  • The potential outcome is desirable

    • The more valuable or appealing the outcome, the more motivated workers are to achieve it

  •  Where low motivation is identified, managers may take steps to improve one or more of the components for individuals

  • These steps may include 

    • Improve training and development to increase the expectancy score

    • Increase trust between management and workers by ensuring that promises are kept - this may increase the instrumentality score

    • Widen the package of rewards available for good performance to improve the valence score

Strengths of expectancy theory

  • The theory takes into account personal differences and considers them when explaining motivation

  • A clear and logical framework for understanding motivation by breaking it down into three key components

  • It emphasises the importance of involving employees in the goal-setting process

Weaknesses of expectancy theory

  • The theory is based on subjective perceptions and beliefs so it may not always accurately predict behaviour

  • Individuals' perceptions and values can vary

  • It provides a framework for understanding motivation rather than precise predictions

Examiner Tips and Tricks

It is important to note that motivation - especially intrinsic motivation - is very personal and can differ significantly between individuals

Assuming that all workers - even if they are in similar roles, with similar challenges and pay - are motivated by the same factors is likely to lead to the failure of reward programmes

In some cases, employees may even need guidance to help them to understand what motivates or demotivates them - until they do so, it will be difficult to engage them successfully with regard to programs.

Last updated:

You've read 0 of your 5 free revision notes this week

Sign up now. It’s free!

Join the 100,000+ Students that ❤️ Save My Exams

the (exam) results speak for themselves:

Did this page help you?

Lisa Eades

Author: Lisa Eades

Expertise: Business Content Creator

Lisa has taught A Level, GCSE, BTEC and IBDP Business for over 20 years and is a senior Examiner for Edexcel. Lisa has been a successful Head of Department in Kent and has offered private Business tuition to students across the UK. Lisa loves to create imaginative and accessible resources which engage learners and build their passion for the subject.

Steve Vorster

Author: Steve Vorster

Expertise: Economics & Business Subject Lead

Steve has taught A Level, GCSE, IGCSE Business and Economics - as well as IBDP Economics and Business Management. He is an IBDP Examiner and IGCSE textbook author. His students regularly achieve 90-100% in their final exams. Steve has been the Assistant Head of Sixth Form for a school in Devon, and Head of Economics at the world's largest International school in Singapore. He loves to create resources which speed up student learning and are easily accessible by all.