The two-factor theory is Herzberg’s classification of needs as hygienes and motivators. In the 1950s, Frederick Herzberg and associates’ research findings disagreed with the traditional view that satisfaction and dissatisfaction were at opposite ends of a continuum. Herzberg classifies two needs that he calls factors. Herzberg combines lower-level needs into one classification he calls hygienes; and he combines higher-level needs into one classification he calls motivators.

Hygienes are also called extrinsic factors because attempts to motivate come from outside the job itself. Motivators are called intrinsic factors because motivation comes from the job itself. Herzberg contends that providing hygiene factors keeps people from being dissatisfied, but it does not motivate people. For example, if people are dissatisfied with their pay and they get a raise, they will no longer be dissatisfied. They may even be satisfied for a short period of time.

However, before long they get accustomed to the new standard of living and will no longer be satisfied. The vicious cycle goes on. If you got a pay raise, would you be motivated and be more productive? To motivate, Herzberg says that you must first ensure that hygiene factors are adequate. Once employees are satisfied with their environment, they can be motivated through their jobs.