TOPIC: MOTIVATION THEORIES

Maslows Need Hierarchy Theory:

Maslows theory is based on the human needs. According to
Maslow, all human needs are classified into the five need-clusters as
shown in the following figure:

Fig: Maslows Need Hierarchy

1. Physiological Needs:
These needs are based to human life and include food,
clothing, shelter, air, water and other necessities of life.
Entrepreneur also being a man needs to meet his psychological
needs for survival.
2. Safety and Security Needs:
After satisfying the physiological needs, the next needs felt are
called safety and security needs. These needs find expression in
such desires as economic security and protection from physical
dangers.
3. Social Needs :
These needs refer to belongingness. All individuals want to
be recognized and accepted by others. Likewise, an entrepreneur is
motivated to interact with fellow entrepreneurs, his employees and
others.
4. Esteem Needs:

These needs refer to self-esteem and self-respect. They

include such needs which indicate self-confidence, achievement,
competence, knowledge and independence.
5. Self-Actualisation:
The final step under the need hierarchy model is the need
for self-actualisation. This refers to self-fulfilment.

McClellands Acquired Needs Theory:

McClelland classified three types of needs of human being:

1. Need for Affiliation
2. Need for Power
3. Need for Achievement

1. Need for Affiliation:

Affiliation needs refers to the desire of establishment and
maintenance friendly and warm relationship with others.
2. Need for Power:
It refers to the desire of dominating and influencing others by
using physical objects and actions.
3. Need for Achievement:
It refers to the desire of doing something new, outstanding, and
excellent by ones own effort.