Needs Hierarchy

Fundamentals

Needs-based theories of motivation suggest that if managers understand employees’ needs, they can provide incentives that help meet these needs, thus, motivating the employees. These theories rest on the assumption that needs are motivators. Maslow’s work supports this, and interpretations of his work contend that humans share basic categories of needs and that these needs can be arranged in a hierarchy. This hierarchy suggests a prepotency where the appearance of one level of need rests on the prior satisfaction of a more “prepotent” need.

Management textbooks suggest that Maslow’s hierarchy of needs is best depicted by a pyramid with five levels. At the base of the pyramid lie our most basic needs—our physiological needs, which include the needs for food, air, water, and shelter. According to the theory, until these most basic needs are met, an individual will not be motivated by needs found at other levels. This suggests that these are the most prepotent of all the needs.

According to Maslow’s theory, after physiological needs have been satisfied, the individual is most concerned with the next level of needs—the safety needs. This refers to the need for a safe, stable environment that is without pain or threats. Employees facing these needs might be best motivated by the promise of steady employment, a raise that affords them the ability to live in a safer neighborhood, or a benefit plan that includes medical and dental benefits.

Moving up the levels of the pyramid, the next category refers to belongingness needs. This category represents the need to be loved, the need for affection, and the need to form relationships with others. Managers familiar with Maslow’s needs hierarchy might offer employees membership in elite teams or groups, social functions whereby employees can develop social relationships, or might promote an organizational culture that creates a sense of belonging.

The next level of needs refers to individuals’ esteem needs—the need for personal and social achievement as signified by rewards, recognitions, and the trappings of success. Needs at this level can be categorized as internal or external esteem needs. Internal esteem needs refer to feelings of accomplishment and self-respect, whereas external esteem needs refer to external recognition of success and social status. In terms of organizations, this could mean a challenging assignment, a raise, a corner office, or a reserved parking space.

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