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CLASS XII

BUSINESS STUDIES

CHAPTER 7

DIRECTING

MASLOW’S NEED HIERARCHY THEORY

INTRODUCTION

A manager has to understand the needs of the employees in order to motivate them. Many psychologists have propounded different motivational theories. One of the most widely used theory is the one developed by Abraham Maslow. He developed the theory of motivation based on the hierarchy of needs.

1. BASIC PHYSIOLOGICAL NEEDS

• It refers to our Primary Needs like food, water, shelter etc.
• This need can be fulfilled by basic salary, increment etc.

2. SAFETY/SECURITY NEEDS

• It refers to Physical, Economic & Social security.
• Physical Security means protection against fire, accidents, sexual harassment etc.
• Economic security refers to consistent availability of money to fulfill one’s basic needs.
• Social security refers to social support like during old age illness.
• These needs can be fulfilled by providing fire extinguishers, job security, pension plans etc.

3. AFFILIATION/BELONGING NEEDS

• It refers to the needs of love, affection, belongingness etc.
• For the satisfaction of this need, informal groups emerge in organisations.
• Managers can develop a healthy work environment in their organisations where employees cooperate with each other.

4. ESTEEM NEEDS

• These needs relate to self respect, status, dignity, prestige & respect from others.
• Satisfaction of this need boosts the morale of employees & motivates them to perform better.
• A manager should give awards, appreciation, recognition, promotions, challenging projects to deserving employees to motivate them. For example, many organisations display “Employee of the Month” on the organization’s main wall.

5. SELF ACTUALISATION NEEDS

• According to Maslow, “Self actualization needs are the desires to become everything one is capable of becoming.”
• It relates to an inner desire for personal satisfaction.
• Sometimes a manager is not able to clearly recognize this need of their employees as everyone has got different purpose of life.

Maslow’s Need Hierarchy Theory

His theory is based on certain assumptions as stated:

1. Human behaviour is based on their needs. Satisfaction of these needs influences their behaviour.
2. People’s needs are in hierarchical order, starting from basic needs to other higher-level needs.
3. A satisfied need can no longer act as a motivator. Only next higher-level need can motivate him.
4. A person moves to the next higher level need only when the lower need is satisfied.

CONCLUSION

This theory guides the manager as how to motivate his employees. The manager needs to provide the next higher-level need to motivate his employees.

SUMMARY

• Abraham Maslow developed the theory of motivation based on the hierarchy of needs.
• According to him needs are in hierarchical order starting from lower level to higher level needs. These needs are
  • Physiological needs – Primary needs Food, Clothing & Shelter.
  • Safety needs – Physical, Economic & Social security.
  • Social needs – Needs of love, affection, belongingness.
  • Esteem needs – Self respect & respect from others.
  • Self actualization needs – Desire to become what one is capable of becoming.
• People’s needs are in hierarchical order. A person moves to the next higher level need only when the lower need is satisfied.