Need Theory of Negotiation
Specific needs of an individual are acquired over time and are shaped by experiences. These needs can be categorized as either achievement, affiliation, or power. These three needs influence person's motivation and effectiveness in certain job functions.
Achievement
Person with a high need for achievement seek to excel, hence tend to avoid both low-risk and high-risk situations. Achievers avoid low-risk situations because the easily attained success is not a genuine achievement. In high-risk projects, achievers see the outcome as one of chance rather than one's own effort. Achievers need regular feedback in order to monitor the progress of their achievements. They prefer either to work alone or with other high achievers.
Affiliation
Those with a high need for affiliation requires harmonious relationships with other people and need to feel accepted by other people. They tend to conform to the norms of their work group. High need Affiliation individuals prefer work that provides significant personal interaction. They perform well in customer service and client interaction situations.
Power
A person's need for power can be of two types - personal and institutional. Those who need personal power want to direct others, and this need often is perceived as undesirable. Persons who need institutional power also known as social power want to organize the efforts of others to further the goals of the organization. Managers with a high need for institutional power tend to be more effective than those with a high need for personal power.
Implications for Management
People with different needs are motivated differently.
• High need for achievement - High achievers should be given challenging projects with reachable goals. They should be provided frequent feedback. While money is not an important motivator, it is an effective form of feedback.
• High need for affiliation - Employees with a high affiliation need perform best in a...