Employees are motivated by their needs for achievement, power, and affiliation. It is also called learned needs and three-needs theory. David McClelland does not have a classification for lower-level needs. Unlike the other content theories, the acquired needs theory holds that needs are based on personality and are developed and learned as people interact with the environment.

All people possess the needs for achievement, power, and affiliation, but to varying degrees. One of the three needs tends to be dominant in each individual and motivates his their behavior. People with a high need for achievement tend to want to take personal responsibility for solving problems. They are goal oriented, and they set moderate, realistic, attainable goals.

People with a high need for power have a take-charge attitude. They tend to want to control the situation, to influence or control others, to enjoy competition in which they can win, and to be willing to confront others. People with a high need for affiliation tend to seek close relationships with others, to want to be liked by others, to enjoy social activities, and to seek to belong. They like to interact with other people rather than being alone. People have different needs profiles and must be motivated and led differently.