Maslow's need hierarchy theory and its use in motivating employees

Maslow's need hierarchy theory

Abraham Maslow (1943) proposed that human behaviour is driven by needs arranged in a hierarchy of five levels. A person first seeks to satisfy the lower needs; once a need is reasonably satisfied, it no longer motivates, and the next higher need becomes the motivator.

1. Physiological needs: what the body cannot do without: food, water, a roof, rest. For an employee this is a wage that covers the household's basic costs.
2. Safety (security) needs: freedom from danger and from the fear of losing one's livelihood. A permanent post, a safe shop floor, medical cover and a retirement benefit answer them.
3. Social (belonging) needs: being liked and accepted by others. A friendly team and a manager who takes an interest meet them.
4. Esteem needs: respect from others and a good opinion of oneself. A promotion, a title or public praise feeds them.
5. Self-actualisation needs: the urge to grow into the fullest version of oneself. Stretching work, room to create and the freedom to decide how to work serve them.

The first two are lower-order needs, satisfied mainly from outside (pay, conditions); the last three are higher-order needs, satisfied largely from within the person.

Assumptions

• Once a need has been reasonably met, it stops driving behaviour; only unmet needs move people.
• A higher need comes to the fore only after the needs below it are fairly well met.
• What a person does at work is an attempt to meet some need, so behaviour can be read through needs.
• The five needs have a fixed rank, from survival at the bottom to growth at the top.

How managers can use the theory

1. Identify where each employee stands. A new trainee on a low wage is moved by pay and security; a senior professional by recognition and challenge.
2. Meet basic needs first. Fair wages, regular payment and decent conditions remove the most pressing concerns.
3. Provide security. Clear contracts, safety at work, health insurance and retirement benefits.
4. Satisfy social needs. Team-based work, social events, mentoring and a cooperative culture.
5. Satisfy esteem needs. Praise, awards, promotions, job titles and participation in decisions.
6. Encourage self-actualisation. Job enrichment, training, creative assignments, autonomy and career development.
7. Use a mix of financial and non-financial incentives suited to the needs that are active.
8. Review as needs change. As people progress, their dominant needs move upward, so incentives must change too.

Example. A software firm pays competitive salaries and gives health cover (lower needs), organises project teams and social events (belonging), runs an employee-of-the-quarter programme (esteem) and lets senior engineers propose and lead new product ideas (self-actualisation).

Limitations

Needs do not always follow the order (an artist may seek self-actualisation before security); people may be driven by several needs at once; the hierarchy reflects Western culture and may differ elsewhere; and needs are hard to measure. Even so, the theory remains a simple and useful guide for managers.