Three Needs Theory

Need theory, also known as Three Needs Theory,[1] proposed 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 by which each individual is driven derives from their life experiences and the opinions of their culture. This need theory is often taught in classes concerning management or organizational behaviour.

David Kolb learning style inventory

Kolb – Learning Styles
by Saul McLeod published 2010, updated 2013

David Kolb published his learning styles model in 1984 from which he developed his learning style inventory.

Kolb’s experiential learning theory works on two levels: a four stage cycle of learning and four separate learning styles. Much of Kolb’s theory is concerned with the learner’s internal cognitive processes.

Kolb states that learning involves the acquisition of abstract concepts that can be applied flexibly in a range of situations. In Kolb’s theory, the impetus for the development of new concepts is provided by new experiences.

“Learning is the process whereby knowledge is created through the transformation of experience” (Kolb, 1984, p. 38).

The Seven Management and Planning Tools

The Seven Management and Planning Tools have their roots in Operations Research work done after World War II and the Japanese Total Quality Control (TQC) research.

In 1979 the book Seven New Quality Tools for Managers and Staff was published and was translated into English in 1983.

The Seven Tools

Affinity Diagram (KJ Method)

Affinity Diagram

Affinity diagrams are a special kind of brainstorming tool that organize large amounts of disorganized data and information into groupings based on natural relationships.

It was created in the 1960s by the Japanese anthropologist Jiro Kawakita. Its also known as KJ diagram,after Jiro Kawakita.When to Use an Affinity Diagram 1)When you are confronted with many facts or ideas in apparent chaos 2)When issues seem too large and complex to grasp

Interrelationship Digraph (ID)

Interrelationship Digraph

This tool displays all the interrelated cause-and-effect relationships and factors involved in a complex problem and describes desired outcomes. The process of creating an interrelationship digraph helps a group analyze the natural links between different aspects of a complex situation.

Tree Diagram

Tree Diagram

This tool is used to break down broad categories into finer and finer levels of detail. It can map levels of details of tasks that are required to accomplish a goal or solution or task. Developing the tree diagram helps one move their thinking from generalities to specifics.

Prioritization Matrix

Matrix Diagram

This tool is used to prioritize items and describe them in terms of weighted criteria. It uses a combination of tree and matrix diagramming techniques to do a pair-wise evaluation of items and to narrow down options to the most desired or most effective. Popular applications for the Prioritization Matrix include Return-on-Investment (ROI) or Cost-Benefit analysis (Investment vs. Return), Time management Matrix (Urgency vs. Importance), etc.

Matrix Diagram

Matrix Diagram

This tool shows the relationship between items. At each intersection a relationship is either absent or present. It then gives information about the relationship, such as its strength, the roles played by various individuals or measurements. Six differently shaped matrices are possible: L, T, Y, X, C, R and roof-shaped, depending on how many groups must be compared.

Process Decision Program Chart (PDPC)

Process Decision Program Chart

A useful way of planning is to break down tasks into a hierarchy, using a tree diagram. The PDPC extends the tree diagram a couple of levels to identify risks and countermeasures for the bottom level tasks. Different shaped boxes are used to highlight risks and identify possible countermeasures (often shown as ‘clouds’ to indicate their uncertain nature). The PDPC is similar to the Failure Modes and Effects Analysis (FMEA) in that both identify risks, consequences of failure, and contingency actions; the FMEA also rates relative risk levels for each potential failure point.

Activity Network Diagram

Arrow Diagram

This tool is used to plan the appropriate sequence or schedule for a set of tasks and related subtasks. It is used when subtasks must occur in parallel. The diagram enables one to determine the critical path (longest sequence of tasks). (See also PERT diagram.)

Further reading

External links

retail case study

Regression: the Mother of all Models – Retail Case Study Example (Part 9)

Retail case study example for marketing analytics.

Problem definition:  Part 1 & Part 2
Description: Part 3
Association: Part 4
Classification: Part 5, Part 6,  Part 7 & Part 8


In this part, we will learn about estimation through the mother of all models – multiple linear regression. A sound understanding of regression analysis, and modeling provides a solid foundation for analysts to gain deeper understanding of virtually every other modeling technique like neural networks, logistic regression, etc.

Gerard Hendrik (Geert) Hofstede

Hofstede’s cultural dimensions theory is a framework for cross-cultural communication, developed by Geert Hofstede. It describes the effects of a society’s culture on thevalues of its members, and how these values relate to behavior, using a structure derived from factor analysis.[1]

Hofstede developed his original model as a result of using factor analysis to examine the results of a world-wide survey of employee values by IBM between 1967 and 1973. It has been refined since. The original theory proposed four dimensions along which cultural values could be analyzed: individualism-collectivism; uncertainty avoidance; power distance (strength of social hierarchy) and masculinity-femininity (task orientation versus person-orientation). Independent research in Hong Kong led Hofstede to add a fifth dimension, long-term orientation, to cover aspects of values not discussed in the original paradigm. In 2010 Hofstede added a sixth dimension, indulgence versus self-restraint.

Hofstede’s work established a major research tradition in cross-cultural psychology and has also been drawn upon by researchers and consultants in many fields relating to international business and communication. The theory has been widely used in several fields as a paradigm for research, particularly in cross-cultural psychology, international management, and cross-cultural communication. It continues to be a major resource in cross-cultural fields. It has inspired a number of other major cross-cultural studies of values, as well as research on other aspects of culture, such as social beliefs.

Gerard Hendrik (Geert) Hofstede (born 2 October 1928) is a Dutch social psychologist, former IBM employee, and Professor Emeritus of Organizational Anthropology and International Management at Maastricht University in the Netherlands, well known for his pioneering research on cross-cultural groups and organizations.

His most notable work has been in developing cultural dimensions theory. Here he describes national cultures along six dimensions: Power Distance, Individualism, Uncertainty avoidance, Masculinity, Long Term Orientation, and Indulgence vs. restraint. He is known for his books Culture’s Consequences and Cultures and Organizations: Software of the Mind, co-authored with his son Gert Jan Hofstede.[1][2] The latter book deals with organizational culture, which is a different structure from national culture, but also has measurable dimensions, and the same research methodology is used for both.

Dimensions of national cultures

Differences between the degrees within the Power Distance Index.

  • Power distance index (PDI): The power distance index is defined as “the extent to which the less powerful members of organizations and institutions (like the family) accept and expect that power is distributed unequally.” In this dimension, inequality and power is perceived from the followers, or the lower level. A higher degree of the Index indicates that hierarchy is clearly established and executed in society, without doubt or reason. A lower degree of the Index signifies that people question authority and attempt to distribute power.[6]

Differences between the degrees within the Individualism vs. Collectivism index.

  • Individualism vs. collectivism (IDV): This index explores the “degree to which people in a society are integrated into groups.” Individualistic societies have loose ties that often only relates an individual to his/her immediate family. They emphasize the “I” versus the “we.” Its counterpart, collectivism, describes a society in which tightly-integrated relationships tie extended families and others into in-groups. These in-groups are laced with undoubted loyalty and support each other when a conflict arises with another in-group.[6][7]

Differences between the degrees within the Uncertainty Avoidance Index.

  • Uncertainty avoidance index (UAI): The uncertainty avoidance index is defined as “a society’s tolerance for ambiguity,” in which people embrace or avert an event of something unexpected, unknown, or away from the status quo. Societies that score a high degree in this index opt for stiff codes of behavior, guidelines, laws, and generally rely on absolute Truth, or the belief that one lone Truth dictates everything and people know what it is. A lower degree in this index shows more acceptance of differing thoughts/ideas. Society tends to impose fewer regulations, ambiguity is more accustomed to, and the environment is more free-flowing.[6][7]

Differences between the degrees within the Masculinity vs. Femininity index.

  • Masculinity vs. femininity (MAS): In this dimension, masculinity is defined as “a preference in society for achievement, heroism, assertiveness and material rewards for success.” Its counterpart represents “a preference for cooperation, modesty, caring for the weak and quality of life.” Women in the respective societies tend to display different values. In feminine societies, they share modest and caring views equally with men. In more masculine societies, women are more emphatic and competitive, but notably less emphatic than the men. In other words, they still recognize a gap between male and female values. This dimension is frequently viewed as taboo in highly masculine societies.[6][7]

Differences between the degrees within the Long-Term vs. Short-Term Orientation index.

  • Long-term orientation vs. short-term orientation (LTO): This dimension associates the connection of the past with the current and future actions/challenges. A lower degree of this index (short-term) indicates that traditions are honored and kept, while steadfastness is valued. Societies with a high degree in this index (long-term) views adaptation and circumstantial, pragmatic problem-solving as a necessity. A poor country that is short-term oriented usually has little to no economic development, while long-term oriented countries continue to develop to a point.[6][7]

Differences between the degrees within the Indulgent vs. Restraint index.

  • Indulgence vs. restraint (IND): This dimension is essentially a measure of happiness; whether or not simple joys are fulfilled. Indulgence is defined as “a society that allows relatively free gratification of basic and natural human desires related to enjoying life and having fun.” Its counterpart is defined as “a society that controls gratification of needs and regulates it by means of strict social norms.” Indulgent societies believe themselves to be in control of their own life and emotions; restrained societies believe other factors dictate their life and emotions.[6][7]

Earl Nightingale

Published on Aug 12, 2013
Born in Los Angeles, California in 1921, by 1933, his father had left him, his mother and two brothers. At the bottom of the Great Depression with millions unemployed, Earl’s mother worked at the WPA sewing factory to provide for her three boys. They lived in a tent in Tent City, behind the Mariner Apartments on the waterfront in Long Beach, California, and while being poor didn’t seem to bother most of the other kids, it bothered Earl, and he wanted to know why they were so poor, while others, he observed, appeared to be so rich. Why some people were so miserable, while others, so happy. Simply, what made people turn out the way they do.