McGregor’s Theory X and Theory Y
were developed by Douglas McGregor and
describe two distinct
views of human nature.
1. Theory X
was the assumption that employees dislike work, are
lazy, seek to avoid responsibility,
and must be coerced to perform.
2. Theory Y
was the assumption that employees are creative, seek
responsibility, and can exercise
3. Theory X assumed that lower-order needs (Maslow’s) dominated
individuals, and Theory Y
assumed that higher-order needs dominated.
is the theory developed by Frederick Herzberg
that suggests that intrinsic
factors are related to job satisfaction and motivation, and extrinsic
factors are associated with job
dissatisfaction. The basis of Herzberg’s theory is that he believed that
the opposite of satisfaction was not
dissatisfaction. Removing dissatisfying characteristics from a job would
not necessarily make the job
satisfying. Frederick Herzberg’s
two-factor theory states that there are
only two categories of needs.
are factors that eliminate dissatisfaction.
They include things such as supervision,
company policy, salary, working conditions, security and so
forth—extrinsic factors associated with job
context, or those things surrounding a job.
are necessary to keep workers away from
feeling dissatisfied. There are several hygiene
b. Working conditions
d. Company policies
are factors that increase job satisfaction and
hence motivation. They include things such as
achievement, recognition, responsibility, advancement and so
forth—intrinsic factors associated with job
content, or those things within the job itself.
can only lead workers to feel satisfied and
c. Work itself
e. Growth and achievement
combines Maslow’s five needs into three need
levels: existence, relatedness
1. Existence needs
include the various forms of material and
such as food and water, as well as such work-related forms as pay,
and physical working conditions.
2. Relatedness needs
address our relationships with significant others,
families, friendship groups, work groups and professional groups.
3. Growth needs
impel creativity and innovation, along with the
desire to have a
productive impact on our surroundings.
4. ERG needs differ in concreteness, i.e. the degree to which their
absence can be verified.
5. The satisfaction-progression
principle is a principle that states that
of one level of need encourages concern with the next level.
6. Besides disagreeing as to the number of
need levels that might exist, the ERG
theory differs from Maslow’s hierarchy of needs theory in three other
a. Although the general notion of a hierarchy is retained, Alderfer’s
argues that we can be concerned with more than one need category at the
b. ERG theory is more flexible in acknowledging that some individuals’
needs may occur in a somewhat different order than the posited by the
c. ERG theory incorporates a
frustration regression principle which
that if we are continually frustrated in our attempts to satisfy a
need, we may cease to be concerned about that need.
McClelland’s acquired-needs theory
argues that our needs are acquired or learned
on the basis of our life
1. The Thematic Apperception Test (TAT) measures the needs for
achievement, affiliation, and power.
2. The need of achievement (nAch)
is the desire to accomplish challenging tasks
and achieve a standard of excellence in one’s work.
3. The need for affiliation (nAff)
is the desire to maintain warm, friendly
relationships with others.
4. The need for power (nPow)
is the desire to influence others and control
a. Personal power
is the need for power in which individuals want to
dominate others for the sake of demonstrating their ability to wield
b. Institutional power
is the need for power in which individuals focus on
what they can do to solve problems and further organizational goals.
5. The need profile of successful managers in competitive environments
a. A moderate-to-high need for institutional power.
b. A moderate need for achievement to facilitate individual
early in one’s career and a desire for the organization to maintain a
competitive edge as one moves to higher levels
c. At least a minimum need for affiliation to provide sufficient
d. Need for achievement may actually be more important than need for
power in running small or large, decentralized companies.
6. It may be possible to foster the needs for achievement and for
Significance for Managers
Many aspects of need theories are of value to
1. Need theories are compatible in pointing out the importance of
as a source of motivation.
2. Research indicates that it is more likely that individuals differ in
the makeup of
their need structures than that the need structures of individuals are
3. The frustration-regression aspect of ERG theory may have serious
developed by J. Stacey Adams, says that an
employee perceives what he or she got from a
job situation (outcomes) in relation to what he or she put into it
(inputs) and then compares the inputsoutcomes
ratio with the inputs-outcomes ratios of relevant others and finally
corrects any inequity.
1. The referents
are the persons, systems, or selves against which
individuals compare themselves to
2. Equity theory recognizes that individuals are concerned with their
absolute rewards as well as the
relationship of those rewards to what others receive.
3. What will employees do when they perceive an inequity?
a. Distort either their own or others’ inputs or outcomes.
b. Behave in some way to induce others to change their inputs or
c. Behave in some way to change their inputs or outcomes.
d. Choose a different comparison person.
e. Quit their job