Abraham Maslow was an American psychologist and best known for his classic work on motivation. He was the first person who said that human needs become active in a hierarchy. Earlier it was said that a person can be motivated by monetary incentives or non- monetary incentives. But Maslow said that need of a person is changeable. He/she expect monetary incentives at earlier stage and as much as he/she attains maturity expect non-monetary incentives.
1. Physiological Needs : Physiological needs are the basic needs of human being. These needs are on top of hierarchy of human needs and related to survival of human being. This theory states that humans are compelled to fulfill these physiological needs first in order to pursue intrinsic satisfaction on a higher level. If these needs are not achieved, it leads to an increase in displeasure within an individual. These needs include food, shelter, cloth, water, breathing, sex and sleep. These needs can be satisfied by offering monetary incentives like Salary, allowances, bonus, commission, perquisites.
2. Safety Needs : Safety needs are on second in the hierarchy of needs and become active when physiological needs are satisfied. At this stage employee has a sense of insecurity due to uncertainties of future. Example of such needs are : employee worried about his survival after retirement , he worried about his family if he died . Such needs can be satisfied by monetary incentives like provident fund, pension, insurance, etc.
3. Social Needs : This need is on third in the hierarchy of needs . At this stage employee expect love, affection, social belongings . These needs can be satisfied by non-monetary incentives like friendly working environment, informal organization.
4. Esteem Needs : After satisfying social needs esteem needs of employee became active. At this stage employee felt himself senior most and want to be treated accordingly. He expect respect, recognition, appreciation. These needs can be satisfied by non-monetary incentives like respect, recognition and appreciation.
5. Self Actualisation Needs : This is last in the hierarchy of needs as per need hierarchy theory by Abraham Maslow . At this stage employee wants to achieve his goal. He want to be remembered after retirement and death. So he expect some space, freedom and autonomy to prove his creativity. Example of such needs are :
i) An army person feet proud while facing bullet.
ii) A scientist want to invent some unique technologies.
iii) A lecturer want to publish some books .
These needs can be satisfied by providing non-monetary incentives like freedom and autonomy.
Assumptions of the theory :
1. Human behavior can be changed by providing incentives.
2. Human needs follow hierarchy.
3. Human needs can be satisfied fully and permanently.
