Research about job satisfaction at PG bank (vietnam)

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MASTER OF BUSINESS ADMINISTRATION

INTERNATIONAL PROGRAM

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RESEARCH PROJECT (BMBR5103)

RESEARCH ABOUT JOB SATISFACTION

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ADVISOR’S SIGNATURE

Suggestions have been received from many of my lecturer and classmate during

research progress

Each of those who have offered comments and suggestions always has my thanks

The efforts of many people are needed to develop and improve this research

Among these people are the reviewers and consultants who point out areas of

concern, cite areas of strength, and make recommendations for change

I am grateful for the outstanding support from my lecturer NGUYEN THE KHAI

(DBA) and PG Bank for permission the employees answer the questions in the

survey and support too much information related to my research

And, I also specially thank to my members of family, friends and colleagues

always mobilize me to finish this research

Once again, I thank very much to all

Phan Ba Phuong Student

ACKNOWLEDGMENTS

X theory and Y theory 17

Hypothesis proposed (H1) 39 Hypothesis proposed (H2) 39 Hypothesis proposed (H3) 40 Hypothesis proposed (H4) 41

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Figure 1 Figure 2 Figure 3 Figure 4 Figure 5 Figure 6

TABLE

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Table 10 Table 11 Table 12 Table 13 Table 14 Table 15 Table 16 Table 17 Table 18 Table 19 Table 20 Table 21 Table 22

Distributive, Procedural, Interactive Justice Scale 32

Cronbach’s Alpha of Job Cognitions 35 Cronbach’s Alpha of Distributive, Procedural, Interactive Justice 35 Cronbach’s Alpha of Perceived Person – Organization Fit 36

Cronbach’s Alpha of Perceived Importance – Workplace Values 36

ABSTRACT

his purpose of this research is way to find the factors influence to the Job

Satisfaction of employees working at PG Bank

This research project will use Business Research Methods to determine

Job Satisfaction and what other main factors that it influence job satisfaction And this

research also was conducted by quantitative method with source data is surveys that it

issued by offline to 500 employees of PG Bank to collect the ideas and comments of

employees about job satisfaction

Next, the result of these surveys shall be statistically analyzed by software SPSS

version 22 (copyright of IBM) Hypotheses used this research includes five constructs:

one dependent construct (Job Satisfaction) and four independent constructs (Job

Cognitions; Distributive, Procedural, Interactive Justice; Perceived Organization Fit; Perceived Importance of Workplace values)

Person-I hope results of this research will help the CEO; managers of PG Bank have some

reference angle in human resource management to improve and increase our quality

resource based on job satisfaction of employees as well as you should have perception

clearly that job satisfaction of employees will impact to working effective, ability of

competitiveness of the company on banking and financial sector Vietnam market

Key words in this research: Overall Job Satisfaction, Job Cognitions; Distributive, Procedural, Interactive Justice; Perceived Person; Perceived Importance and PG Bank

T

PART ONE: INTRODUCTION

About PG Bank

History

Petrolimex Group Commercial Joint Stock Bank (PG Bank), formerly known as Dong

Thap Muoi Rural Joint Stock Bank, was established on 13th Nov 1993 with initial

chartered capital of VND 700 million After nearly 20 years of operation, the Bank has

developed steadily and succeeded in building up customers trust From 2005, with the

participation of strategic shareholder, which is Vietnam National Petroleum Group

(Petrolimex), PG Bank experienced outstanding achievements, in terms of both

operating scale and effectiveness The year 2007 marked a significant development

milestone of PG Bank by the transformation to urban bank model which is sound step

forward on the road to become a leading Vietnamese universal bank

• December 2011: Officially launching new Head quarter in Mipec Tower, 229 Tay Son (Hanoi)

• August 02, 2012: Chartered capital officially increased to VND 3,000 billion

• May 2013: Flexipay - money transfer service was launched at Petrolimex's petrol stations

• June 2013: Visa Credit Card was rolled out

• December 2013: PG Bank was extended the operating license to 99 years from 13/11/1993 according to the Decision of the State Bank of Vietnam on amending the

contents of the Operating License

Products and Services

PG Bank provides a comprehensive range of traditional banking products and services,

including deposit and lending products, cross-border remittance service, trade

financing and card-related services In addition, the Bank has also put great effort in

developing and offering customers more diversified and advanced financial products

and services, notably corporate finance and commodity derivatives

Information System

The Internet Banking service of PG Bank has been enhancing continuously in recent

years, allowing customers to conveniently make banking transactions on the Bank’s portal with personal information being kept at strictest confidential To ensure best

support possible to all the operations of the Bank, in recent years PG Bank has

invested heavily on the information system At the moment, PG Bank is utilizing

FlexCube, the corebanking system provided by Oracle while using the advanced

information security system developed by Checkpoint

Vision and Business strategy

To become a leading commercial joint-stock bank offering outstanding quality

financial and banking services based on highly competent and dedicated personnel,

and a world-class technology

Philosophies

Moving towards a multi-functional banking model, in which giving priority to and

applying differentiation strategy in the fields that PG Bank has competitive

advantages:

Corporate banking: target at major shareholders and the shareholders’ clients and partners, small and medium enterprises

Retail banking: focus on individual & household businesses

Investment banking: provide investment banking services to corporate

customers

Financial Highlights

- Since the transformation from a rural bank to an urban bank in 2007, PG Bank

has continuously accomplished marvelous achievements

- The operation scale of the Bank has increased dramatically Total assets grew

4.1 times in the period of 2007 – 2012, reaching VND 19,251 billion in

31/12/2012

- While constantly attempting to increase the business scale, PG Bank has also

tried relentlessly to maximize efficiency and profitability Capital adequacy

ratio always meets the requirement of SBV and international standard (2012:

22.62%)

Contact:

Legal name:

Headquarters: 16th, 23rd & 24th Floor, Mipec Tower, No 229 Tay Son Street, Nga Tu

So Ward, Dong Da District, Hanoi, Vietnam

Phone: (+84) 4 6281 1298 Fax: (+84) 4 6281 1299 Website: www.pgbank.com.vn

Middle of Vietnam: 143 - 145 Nguyen Van Linh, Thanh Khe, Da Nang City, Vietnam

Phone: (+84) 511 368 9777 Fax: (+84) 511 368 9778 Website: www.pgbank.com.vn

South of Vietnam: 2.5 - 2.8 Phan Xich Long, Ward 3, Binh Thanh, Ho Chi Minh City

Phone: (+84) 8 3517 8171 Fax: (+84) 8 3517 8161 Website: www.pgbank.com.vn

Organization structure and corporate culture

Mix organizational structure

Achievements

Honorably being awarded “A Rating” by the State Bank of Vietnam in 2007,

2008, 2009 and 2010

Honorably being presented with “Vietnam Excellent Brand” by Vietnam

Economic News and Trade promotion Agency - Ministry of Industry and Trade

in 6 consecutive years from 2008 to 2013

Honorably being awarded “Vietnam Top Trade Services” by Ministry of Industry and Trade in 2009 and 2013

Honorably being awarded "Top 100 Vietnam Top Trade Services 2010" by

Ministry of Industry and Trade

Honorably being awarded Certificate of Merit of Vietnam Social Insurance in

2011 by Vietnam Social Insurance

Honorably being awarded Emulation Flag in 2011 by Chairman of Hanoi

People’s Committee

Honorably being awarded Certificate of Merit for 2009, 2010 Excellent

performance by Ministry of Industry and Trade

Honorably being ranked in "Top 500 largest Vietnamese enterprises" and "Top

500 largest private Vietnamese enterprises" by Vietnam Report Jsc

Honorably being awarded Certificate of Merit for 2012 Excellent Organization

by The Governor of the State Bank of Vietnam

Strategy Shareholders

Vietnam National Petroleum Group (Petrolimex) is the biggest shareholder of PG

Bank, currently holds 40% of charter capital Petrolimex is one of key state groups

with the given economic and political responsibilities of ensuring and developing the

state capital as well as playing the main role in regulating, stabilizing and developing

the petroleum market and refinery products to proactively service the industrialization

and modernization process of the country At present, the Group provides 50% of

domestic oil and gas market with nation-wide network of 6,100 group-owned stations

and retail-owned stations under the brand name of Petrolimex Besides the core

business, Petrolimex also invested in other fields, such as designing, mechanics,

insurance, banking, etc and achieved great success

In 2013, the total revenue of Petrolimex reached VND 201,421 mil VND (9,575 mil

USD) Consolidated Net income was 1,579 mil VND (75 mil USD), increased by 2

times compared to 2012 (772 mil VND)

The operational network includes:

Domestic:

01 Head office

42 domestic petroleum limited companies

29 joint stock companies

03 associated companies

01 joint ventures

Foreign:

01 limited company in Singapore

01 limited company in Laos

01 representative office in Cambodia

Research problem statement

PG Bank is 100% Vietnamese enterprise Currently, in the context of the Vietnam

financial and banking business very tough and working environment of Vietnamese

financial and banking has too many changes but not yet have any researches finding

about job satisfaction of employees at these organizations

Practice of many countries shows that, if the development of the banking system is

supported by the adequate development of human resources, especially high-quality

human resources will create sustainability for the banking sector goods in particular

and the economy in general In Vietnam, the rapid development of the system of credit

institutions (CIs), especially in the period 2007- 2008, has exposed the limitations this

stems from many causes, but taken together the cause of human resources, especially

high-quality human resources development is not consistent with the level of growth

of credit activity which

PG Bank is aggressively developing and growing human resource, especially in the

selection of right people for the bank However, recruiting right people is not enough

and they are embarrassing to know how to keep talent employees, retain talents,

especially how to retain their key staff who plays a key role in the bank With the

shortage of human capital as today, retention good people are becoming big issue of

PG Bank

CEO at PG Bank realized Job Satisfaction of employees is important factor for PG

Bank develop sustainably their human resource to help organization to operate more

efficient, produce quality of products and services, build brand awareness, customer

trust and loyalty… But, some factors such as Overall Job Satisfaction; Job Cognitions; Distributive, Procedural, Interactive Justice; Perceived Person – Organization Fit; Perceived Importance of Workplace values are problems for human

resource management at PG Bank

Research objectives

This purpose of this research is way to find the factors influence to the Job Satisfaction

of employees working at PG Bank

My research will focus 3 main factors:

 Firstly: search related information and try to define what meaning Job Satisfaction is of employees at PG Bank

 Secondly: design research model and test related factors to check influence

between factors to access strong / weak level of each factor in influence

progress

 Thirdly: discussing and proposing recommendation to improve the

effectiveness and forecast the human resources management at PG Bank in the

next time

Research scope

The scope of research is for the entire employees at PG Bank, includes: General

Director, Vice General Directors, managers, subordinate and employees working at

PG Bank; it does not include: Chairman, Board of Directors, Shareholder, Supervisory

Board, and employees are under probation period or in maturity leave

The survey scope is within the territory of Vietnam, which includes 500 employees of

PG Bank

Contents of this research are only including factors influencing to Job Satisfaction at

PG Bank; it does not have intention of re-structuring, changing and replacing the

employees

This survey was conducted from 1 JUNE to 15 JULY 2016

Significance of research

This research will help CEO, Directors; managers understand and are more aware of

the importance of Job Satisfaction That is the most important factor to show the

effectiveness of the policy, the organization operating concept in human matters

Besides significant management, it also improves employee loyalty to the organization

and further, employees will be loyal to the shareholders of the company, contributed to

the financial strength of the companies increasingly stronger in the future

PART TWO: LITERATURE REVIEW

Definition of Constructs

Job Satisfaction

It was developed by Cammann, Fichman, Jenkins, and Klesh (1983) as part of the

Michigan Organizational Assessment Questionnaire (OAQ), uses three items to

describe an employee’s subjective response to working in his or her job and organization This is a global indication of worker satisfaction with a job

The concept of job satisfaction has been developed in many ways by many different

researchers and practitioners One of the most widely used definitions in

organizational research is that of Locke (1976), who defines job satisfaction as “a

pleasurable or positive emotional state resulting from the appraisal of one's job or job experiences” Others have defined it as simply how content an individual is with his or

her job; whether he or she likes the job or not It is assessed at both the global level or

at the facet level

Job satisfaction is the level of contentment a person feels regarding his or her job This

feeling is mainly based on an individual's perception of satisfaction Job satisfaction

can be influenced by a person's ability to complete required tasks, the level of

communication in an organization, and the way management treats employees

Job satisfaction falls into two levels: affective job satisfaction and cognitive job

satisfaction Affective job satisfaction is a person's emotional feeling about the job as a

whole Cognitive job satisfaction is how satisfied employees feel concerning some

aspect of their job, such as pay, hours, or benefits

Job satisfaction can also be seen within the broader context of the range of issues

which affect an individual's experience of work, or their quality of working life Job

satisfaction can be understood in terms of its relationships with other key factors, such

as general well-being, stress at work, control at work, home-work interface, and

working conditions

Job Cognitions

It was developed by Williams and Anderson (1991), asks employees to describe the

extent to which 20 statements are accurate descriptions of the nature of a job It

includes 7 items The statements cover a broad range of job characteristics and leave

unstated the specific referent an employee should use in responding This approach

allows respondents to naturally select reference group(s) they consider appropriate

In the working environment, cognition of one’s job or job experience influences positive emotions and these emotions or perceptions affect performance (Locke,

1976) Social cognitive theories advocate the importance of working environment and

its context on the performance The employees are assumed to be information workers

spending most of their time in absorbing, processing, and disseminating information

about issues, opportunities, and problems (McCall & Kaplan, 1985) The knowledge

and experience gained in the work environment form their perception, leading to

attitude and behavior Therefore, it has been suggested that integration of work context

and its cognition is relevant to study organizational outcomes (Mardas, Theofanides, &

Philippidou, 2011)

Distributive, Procedural, Interactive Justice

It was developed by Niehoff and Moorman (1993) A distributive justice subscale (five

items) describes the extent to which an employee believes that his or her work

outcomes, such as rewards and recognition, are fair The outcomes include pay level,

work schedule, workload, and job responsibilities A procedural justice subscale (six

items) describes the extent to which formal procedures exits and whether these

procedures are implemented in a way that takes employee’s needs into consideration

The formal procedures cover the degree to which job decisions are based on complete

and unbiased information and that employees have opportunities to ask questions and

challenge decisions An interactive justice subscale (nine items) covers the extent to

which employees perceive that their needs are taken into account in making job

decisions and that employees are provided with adequate explanations when decisions

are finalized

Perceived Person – Organization Fit

It was developed by Cable and Judge (1996), uses three items to directly assess an

employee’s perception of his or her fit with an organization

Theoretical and empirical research suggests that individuals and organizations are

most effective when their values, needs, and interests are aligned Manifestations of

this alignment, which often is called person-organization (P-O) fit, include employee

commitment, satisfaction, and retention (Chatman, 1991; Meglino, Ravlin, & Adkins,

1989; O’Reilly, Chatman, & Caldwell, 1991; Sheridan, 1992), organizational

performance (Govindarajan, 1989; Meglino et al., 1989), and individual health (Moos,

1987) Judge and Ferris (1992) proposed that P-O fit affects the degree to which an

individual is liked by co-workers, supervisors, and subordinates, which may be related

to many other aspects of individual and organizational effectiveness Furthermore,

researchers have argued that P-O fit may affect the utility of selection systems

(Adkins, Russell, & Werbel, 1994) and may have bottom-line consequences for

organizations (Boudreau, Sturman, & Judge, 1994)

In light of the potential positive outcomes of P-O fit, researchers have suggested that

organizations proactively hire employees based on their fit with organizations' cultures

(Bowen, Ledford, and Nathan, 1991) One selection device that may be critical in

establishing P-O fit is the employment interview (Judge & Ferris, 1992) The interview

enables organizations and job applicants to interact through organizational

representatives, presumably allowing each party to determine the degree to which the

other demonstrates congruent values and interests Thus, Bowen et al., (1991)

proposed that the interview is a rite of passage allowing organizations to assess

applicants' values and the fit of those values with the organization Rynes and Gerhart

(1990) suggested that P-O fit is most commonly assessed with the employment

interview Experimental research has indicated that judges can interpret "verbal,

self-referent statements made in an interview context in terms of personality characteristics

and relate these to expectations of suitability and performance" (Jackson, Peacock, &

Holder, 1982, p 1), suggesting that it may be possible for interviewers to assess

applicants' personal characteristics and organizational fit Organizational interviewers

also readily declare the goal of locating and hiring applicants who "fit." (e.g., Ricklefs,

1979; Rynes & Gerhart, 1990)

Perceived Importance of Workplace values

It was developed by Van Dyne, Graham, and Dienesch (1994), It includes 7 items

Perception is the process through which the information from outside environment is

selected, received, organised and interpreted to make it meaningful to you This input

of meaningful information results in decisions and actions

Importance of Perception:

(i) Perception is very important in understanding the human behaviour, because every

person perceives the world and approaches the life problems differently- Whatever we

see or feel is not necessarily the same as it really is It is because what we hear is not

what is really said, but what we perceive as being said When we buy something, it is

not because it is the best, but because we take it to be the best Thus, it is because of

perception, we can find out why one individual finds a job satisfying while another

one may not be satisfied with it

(ii) If people behave on the basis of their perception, we can predict their behavior in

the changed circumstances by understanding their present perception of the

environment One person may be viewing the facts in one way which may be different

from the facts as seen by another viewer

(iii) With the help of perception, the needs of various people can be determined,

because people’s perception is influenced by their needs Like the mirrors at an amusement park, they distort the world in relation to their tensions

(iv) Perception is very important for the manager who wants to avoid making errors

when dealing with people and events in the work setting This problem is made more

complicated by the fact that different people perceive the same situation differently In

order to deal with the subordinates effectively, the managers must understand their

perceptions properly

Thus, for understanding the human behaviour, it is very important to understand their

perception, that is, how they perceive the different situations People’s behaviour is based on their perceptions of what reality is, not on reality itself The world as it is

perceived is the world that is important for understanding the human behavior

Argument for the relationship among the constructs

X theory and Y theory

Contents

Theory X and Theory Y are theories of human motivation that were created and

developed by Douglas McGregor at the MIT Sloan School of Management in the

1960s These theories describe two contrasting models of workforce motivation that

have been used in human resource management, organizational behavior,

organizational communication and organizational development

X theory and Y theory have to do with the perceptions that managers hold of their

employees, which in turn influence their management style

X theory: according to this theory, X type individuals are considered to be inherently

lazy and not fond of their jobs As a result, an authoritative management style is

required to ensure that individuals fulfill their objectives Workers managed this way

need to be closely supervised and comprehensive systems of control need to be

developed A hierarchical structure is needed with narrow span of control at each and

every level According to this theory, employees will show little ambition without an

enticing incentive program and will avoid responsibility when they can According to

Dr Kumi Mark, if the organizational goals are to be met, X theory managers must rely

heavily on the threat of punishment to gain compliance of employees When practiced,

this theory can lead to mistrust, highly restrictive supervision and a punitive

atmosphere The X theory manager tends to believe that all actions can be traced back

and the individual responsible for them needs to be directly rewarded or reprimanded

depending on the action's results This managerial style is more effective when used to

motivate a workforce that is not inherently motivated to perform It is usually

exercised in professions where promotion is infrequent, unlikely or even impossible

and where workers tend to perform repetitive tasks in their jobs One major flaw of

this management style is that it limits the potential of the employees under it and

discourages out of the box thinking

Y theory: in this theory, management assumes employees can be ambitious,

self-motivated and exercise self-control It is believed that employees enjoy their mental

and physical work duties According to them, work is as natural as play They possess

the ability for creative problem solving, but their talents are underused in most

organizations Y theory managers believe that given the proper conditions, employees

will learn to seek out and accept responsibility, exercise self-control and self-direction

in accomplishing objectives to which they are committed Y theory manager believes

that, given the right conditions, most people will want to do well at work They believe

that the satisfaction of doing a good job is a strong motivation Many people interpret

Y theory as a positive set of beliefs about workers A close reading of The Human

Side of Enterprise reveals that McGregor simply argues for managers to be open to a

more positive view of workers and the possibilities that this creates He thinks that Y

theory managers are more likely than X theory managers to develop a climate of trust

with employees required for employee development This would include managers

communicating openly with subordinates, minimizing the difference between

superior-subordinate relationships, creating a comfortable environment in which superior-subordinates

can develop and use their abilities This environment would include sharing of

decision making so that subordinates have a say in decisions that influence them

X theory and Y theory combined: X and Y theory are not different ends of the same

continuum, but rather two different continua in themselves McGregor has identified X

theory and Y theory differently X theory assumptions are that individuals dislike their

careers X theory people have to be supervised Y theory assumptions are that

individuals like their careers and are willing to take part in responsibility Y theory

people don't need supervision and can be expected to be productive in their jobs

Previous research

Sahin, F (2012) “The mediating effect of leader-member exchange on the

relationship between X and Y theory management styles and effective commitment: A multilevel analysis” Journal of Management and Organization, 18 (2), 159–174

Self-argument

Personally, I think Theory X and Theory Y will have a strongly impact to Procedural

Justice, because it creates clear perception of justice in organizations Next, it affects Job Satisfaction

Maslow’s theory

Contents

Maslow's hierarchy of needs is a theory in psychology proposed by Abraham Maslow

in his 1943 paper “A Theory of Human Motivation" in Psychological Review”

Maslow subsequently extended the idea to include his observations of humans' innate

curiosity His theories parallel many other theories of human developmental

psychology, some of which focus on describing the stages of growth in humans

Maslow used the terms “physiological”, “safety”, “belongingness” and “love”,

“esteem”, “self-actualization” and “self-transcendence” to describe the pattern that

human motivations generally move through

Maslow studied what he called exemplary people such as Albert Einstein, Jane

Addams, Eleanor Roosevelt, and Frederick Douglass rather than mentally ill or

neurotic people, writing that “the study of crippled, stunted, immature, and unhealthy

specimens can yield only a cripple psychology and a cripple philosophy” Maslow

studied the healthiest 1% of the college student population

Maslow's theory was fully expressed in his 1954 book Motivation and Personality The

hierarchy remains a very popular framework in sociology research, management

training and secondary and higher psychology instruction

Previous research

Tang, T L.; Ibrahim, A H.; West, W B (2002) “Effects of war-related stress on the

satisfaction of human needs: The United States and the Middle East” International

Journal of Management Theory and Practices 3 (1): 35-53

Cianci, R.; et al (2003) “Maslow's hierarchy of needs: Does it apply in a collectivist

culture” Journal of Applied Management and Entrepreneurship 8 (2): 143-161

Kenrick, D T.; Griskevicius, V.; Neuberg, S L.; Schaller, M (2010) “Renovating the

pyramid of needs: Contemporary extensions built upon ancient foundations”

Perspectives on Psychological Science 5 (3): 157-163

Figure 1: Maslow's hierarchy of needs, represented as a pyramid with the more basic needs at the bottom (Source: www.honolulu.hawaii.edu/intranet/committees/FacDevCom/guidebk/teachtip/maslow.htm)

Self-argument

Personally, I think Maslow’s theory is affecting to Job Satisfaction, Satisfaction with

Supervisor, Procedural Justice, Developmental Experiences and Perceived Organization Support, because it deeply researched into the nature of human beings in

all aspects of psychology and physiology

Alderfer’s ERG theory

Contents

Clayton Paul Alderfer (born September 1, 1940 in Sellersville, Pennsylvania) is an

American psychologist who further developed Maslow's hierarchy of needs by

categorizing the hierarchy into his ERG theory (Existence, Relatedness and Growth)

The existence group is concerned with providing the basic material existence

requirements of humans They include the items that Maslow considered to be

physiological and safety needs The second group of needs is those of relatedness - the

desire people have for maintaining important interpersonal relationships These social

and status desires require interaction with others if they are to be satisfied, and they

align with Maslow's social need and the external component of Maslow's esteem

classification Finally, Alderfer isolates growth needs: an intrinsic desire for personal

development These include the intrinsic component from Maslow's esteem category

and the characteristics included under self-actualization

Alderfer categorized the lower order needs (Physiological and Safety) into the

Existence category He fit Maslow's interpersonal love and esteems needs into the

Relatedness category The Growth category contained the actualization and

self-esteem needs Alderfer also proposed a regression theory to go along with the ERG

theory He said that when needs in a higher category are not met then individuals

redouble the efforts invested in a lower category need For example if

self-actualization or self-esteem is not met then individuals will invest more effort in the

relatedness category in the hopes of achieving the higher need

Previous research

C.A Arnolds and C Boshoff (2002) “Compensation, esteem valence and job

performance: an empirical assessment of Alderfer's ERG theory” The International

Journal of Human Resource Management

Self-argument

Personally, I think Alderfer's ERG theory has greater scientific support than Maslow’s

theory but both theories remind managers of the types of reinforces or rewards that can

be used to motivate people

Figure 2: Alderfer’s ERG theory (Source: www.springerplus.com/content/2/1/246/figure/F2?highres=y)

McClelland’s theory

Contents

Written by psychologist David McClelland, is a motivational model that attempts to

explain how the needs for achievement, power, and affiliation affect the actions of

people from a managerial context This model was developed in the 1960s soon after

Maslow's hierarchy of needs in the 1940s McClelland stated that we all have these

three types of motivation regardless of age, sex, race, or culture The type of

motivation that each individual is driven by is changed by life experiences and the

opinions of their culture

Previous research

Harrell, Adrian M.; Stahl, Michael J (1981) “A behavioral decision theory approach

for measuring McClelland's trichotomy of needs” Journal of Applied Psychology, Vol

66 (2), 242-247

Self-argument

Personally, I think McClelland’s theory has shown that when a manager needs to work

with others culture, he will need to adjust to see that the demand for Job Satisfaction is

quite different from one person to another

Figure 3: McClelland’s theory (Source: www.mindtools.com/pages/article/human-motivation-theory.htm)