Theories of Human Behavior

In The Protestant Ethic and the Spirit of Capitalism published in 1905, Max Weber wrote:

The fate of our times is characterized by rationalization and intellectualization, and, above all, by the "disenchantment of the world".

Thus, at the beginning of the 20th Century, Western societies valued science and rationalization more than religion or magic as a way to reach the truth. Despite this secularization, it is relevant to recall that capitalism finds its roots in religion, namely Calvinism and the Protestant work ethics. In 1908, Joseph Schumpeter introduced the concept of methodological individualism, asserting that the social system is the result of the actions of individuals. This method provides the premise of neo-classical theories: individuals make rational choices and have utilitarian motivations. Therefore if we assume that individuals are rational, we can use an interpretative approach.

However, the fact that individuals have mostly utilitarian motivations has been questioned during the 1960s. In The Human Side of Enterprise (1960), Douglas McGregor identified two different styles of management: Theory X and Theory Y. Theory X consists in an authoritarian management style because it assumes individuals dislike working while Theory Y is based on more progressive methods of management, assuming that individuals are creative and goal-oriented rather than result-oriented.

The majority of motivation theories assume individuals have both “materialistic” needs and “post-materialistic” needs. Thus, incentive theories distinguish between two types of motivation: intrinsic motivations, when actions are guided by genuine interest and extrinsic motivations, when actions are guided by reward or punishment. However, the “overjustification effect” appears when an action, which was previously guided by an intrinsic motive becomes guided by extrinsic motives (Deci, 1971). For example, this might occur when someone decides to make a living out of his or her passion.

Furthermore, the Self-Determination Theory states that there are three fundamental needs to maximize the well-being of individuals: the need for autonomy, the need for competence and the need for relatedness (Deci and Ryan, 2000). The need for autonomy is the desire to have a sense of choice and freedom; the need for competence describes the inherent desire to perform challenging tasks; the need for relatedness is the desire to belong to a community and develop close relationships with others. (Deci & Ryan, 2000).

Incentive theories and the self-determination theory simply identify different types of needs without ranking them. However, authors like Maslow or Herberg have argued that materialistic needs are a requirement in order to achieve higher needs. On the one hand, Maslow's hierarchy of needs (1943) categorizes five fundamental needs: physiological needs, safety, love and belonging, esteem and self-actualization. The premise of this theory is that once a level of need is satisfied, one can aspire to a superior need.

On the other hand, Herberg's two-factor theory (1959) distinguishes between “motivators” such as recognition and responsibility and “hygiene factors” such as job security and salary. He argues that hygiene factors aren't motivation drivers but if they are absent, they result in demotivation. For instance, job insecurity might impede a full commitment to an organization.