Maslow's hierarchy 

theory 

Maslow's hierarchy of needs is a motivational theory in psychology

comprising a five tier model of human needs, often depicted as hierarchical
levels within a pyramid.
Maslow (1943, 1954) stated that people are motivated to achieve certain
needs and that some needs take precedence over others. Our most basic
need is for physical survival, and this will be the first thing that motivates
our behavior. Once that level is fulfilled the next level up is what motivates
us, and so on.
his five-stage model can be divided into deficiency needs and growth
needs. The first four levels are often referred to as deficiency needs (D-
needs), and the top level is known as growth or being needs (B-needs).
Deficiency needs arise due to deprivation and are said to motivate people
when they are unmet. Also, the motivation to fulfill such needs will
become stronger the longer the duration they are denied. For example, the
longer a person goes without food, the more hungry they will become.
Maslow (1943) initially stated that individuals must satisfy lower level
deficit needs before progressing on to meet higher level growth needs.
However, he later clarified that satisfaction of a needs is not an “all-or-
none” phenomenon, admitting that his earlier statements may have given
“the false impression that a need must be satisfied 100 percent before the
next need emerges” (1987, p. 69).
When a deficit need has been 'more or less' satisfied it will go away, and
our activities become habitually directed towards meeting the next set of
needs that we have yet to satisfy. These then become our salient needs.
However, growth needs continue to be felt and may even become stronger
once they have been engaged.
Growth needs do not stem from a lack of something, but rather from a
desire to grow as a person. Once these growth needs have been reasonably
satisfied, one may be able to reach the highest level called self-
actualization.
Every person is capable and has the desire to move up the hierarchy toward
a level of self-actualization. Unfortunately, progress is often disrupted by a
failure to meet lower level needs. Life experiences, including divorce and
loss of a job, may cause an individual to fluctuate between levels of the
hierarchy. Therefore, not everyone will move through the hierarchy in a
uni-directional manner but may move back and forth between the different
types of needs.

The original hierarchy of needsfive-stage

model includes:
1. Biological and physiological needs - air, food, drink, shelter, warmth, sex,
sleep.
2. Safety needs - protection from elements, security, order, law, stability,
freedom from fear.
3. Love and belongingness needs - friendship, intimacy, trust and acceptance,
receiving and giving affection and love. Affiliating, being part of a group
(family, friends, work).
4. Esteem needs - which Maslow classified into two categories: (i) esteem for
oneself (dignity, achievement, mastery, independence) and (ii) the desire for
reputation or respect from others (e.g., status, prestige). Maslow indicated
that the need for respect or reputation is most important for children and
adolescents and precedes real self-esteem or dignity.
5. Self-actualization needs - realizing personal potential, self-fulfillment,
seeking personal growth and peak experiences. A desire “to become
everything one is capable of becoming” (Maslow, 1987, p. 64).

Maslow’s Hierarchy of Needs

Theory
Abraham Maslow is well renowned for proposing the Hierarchy of Needs Theory in 1943. This
theory is a classical depiction of human motivation. This theory is based on the assumption that
there is a hierarchy of five needs within each individual. The urgency of these needs varies.
These five needs are as follows-

1. Physiological needs- These are the basic needs of air, water, food, clothing and
shelter. In other words, physiological needs are the needs for basic amenities of life.
2. Safety needs- Safety needs include physical, environmental and emotional safety and
protection. For instance- Job security, financial security, protection from animals, family
security, health security, etc.
3. Social needs- Social needs include the need for love, affection, care, belongingness,
and friendship.
4. Esteem needs- Esteem needs are of two types: internal esteem needs (self- respect,
confidence, competence, achievement and freedom) and external esteem needs
(recognition, power, status, attention and admiration).
5. Self-actualization need- This include the urge to become what you are capable of
becoming / what you have the potential to become. It includes the need for growth and
self-contentment. It also includes desire for gaining more knowledge, social- service,
creativity and being aesthetic. The self- actualization needs are never fully satiable. As
an individual grows psychologically, opportunities keep cropping up to continue growing.

According to Maslow, individuals are motivated by unsatisfied needs. As each of these needs is
significantly satisfied, it drives and forces the next need to emerge. Maslow grouped the five
needs into two categories - Higher-order needs and Lower-order needs. The physiological
and the safety needs constituted the lower-order needs. These lower-order needs are mainly
satisfied externally. The social, esteem, and self-actualization needs constituted the higher-
order needs. These higher-order needs are generally satisfied internally, i.e., within an
individual. Thus, we can conclude that during boom period, the employees lower-order needs
are significantly met.

Implications of Maslow’s Hierarchy of Needs Theory for

Managers

As far as the physiological needs are concerned, the managers should give employees
appropriate salaries to purchase the basic necessities of life. Breaks and eating
opportunities should be given to employees.

As far as the safety needs are concerned, the managers should provide the employees
job security, safe and hygienic work environment, and retirement benefits so as to retain
them.

As far as social needs are concerned, the management should encourage teamwork and
organize social events.

As far as esteem needs are concerned, the managers can appreciate and reward
employees on accomplishing and exceeding their targets. The management can give the
deserved employee higher job rank / position in the organization.

As far as self-actualization needs are concerned, the managers can give the employees
challenging jobs in which the employees’ skills and competencies are fully utilized.
Moreover, growth opportunities can be given to them so that they can reach the peak.

The managers must identify the need level at which the employee is existing and then those
needs can be utilized as push for motivation.

Limitations of Maslow’s Theory

 It is essential to note that not all employees are governed by same set of needs.
Different individuals may be driven by different needs at same point of time. It is always
the most powerful unsatisfied need that motivates an individual.
 The theory is not empirically supported.
 The theory is not applicable in case of starving artist as even if the artist’s basic needs
are not satisfied, he will still strive for recognition and achievement.
Advantages

 Maslow’s theory has an intuitive appeal; it can be easily grasped and

applied.
 There's an approximate correlation with stages of individual
(ontogenetic) human development.
o Infancy is primarily about physiological and survival needs,
though some social interaction is also crucial;
o childhood and adolescence focus more explicitly on social
needs;
o the conscious drives for self-actualisation and self-
transcendence tend to unfold in adulthood.
 There is also a possible correlation with evolutionary (phylogenetic)
development.
o The basic survival motivations (physiological and safety, as
well as reproduction) are universal instincts throughout the animal
kingdom.
o The social drive of bonding, raising offspring and communal
belonging is common to all vertebrates.
o The social drive of asserting individual status within the
community (as in dominance hierarchies) is common to mammals.
o The higher ‘growth’ needs appear to be uniquely human.
Disadvantages

 Certain issues make the theory difficult, if not impossible, to test.

Part of the difficulty lies in the definitions and measurements involved
in the studies. Maslow based his theory on clinical observation, not on
scientific research using large population samples.
 Maslow's claim that people will not be motivated by higher-order
goal such as self-actualization until their lower-order needs such as
food and shelter have been met, is evidently not valid. People have
been known to put abstract religious or altruistic values before their
own survival, for example.

Definition
Management by Objectives (MBO) is a personnel management technique where
managers and employees work together to set, record and monitor goals for a specific
period of time. Organizational goals and planning flow top-down through the
organization and are translated into personal goals for organizational members. The
technique was first championed by management expert Peter Drucker and became
commonly used in the 1960s.

Key Concepts
The core concept of MBO is planning, which means that an organization and its
members are not merely reacting to events and problems but are instead being
proactive. MBO requires that employees set measurable personal goals based upon the
organizational goals. For example, a goal for a civil engineer may be to complete the
infrastructure of a housing division within the next twelve months. The personal goal
aligns with the organizational goal of completing the subdivision.
MBO is a supervised and managed activity so that all of the individual goals can be
coordinated to work towards the overall organizational goal. You can think of an
individual personal goal as one piece of a puzzle that must fit together with all of the
other pieces to form the complete puzzle: the organizational goal. Goals are set down in
writing annually and are continually monitored by managers to check progress.
Rewards are based upon goal achievement.

Advantages
MBO has some distinct advantages. It provides a means to identify and plan for the
achievement of goals. If you don't know what your goals are, you will not be able to
achieve them. Planning permits proactive behavior and a disciplined approach to goal
achievement. It also allows you to prepare for contingencies and roadblocks that may
hinder the plan. Goals are measurable so that they can be assessed and adjusted
easily. Organizations can also gain more efficiency, save resources, and increase
organizational morale if goals are properly set, managed, and achieved.

Disadvantages
However, MBO is not without disadvantages. Application of MBO takes concerted effort.
You cannot rely upon a thoughtless, mechanical approach, and you should note that
some tasks are so simple that setting goals makes little sense and becomes more of a
silly, annual ritual. For example, if your job is snapping two pieces of a product together
on an assembly line, setting individual goals for your work isn't really necessary.
Rodney Brim, a CEO and critic of the MBO technique, has identified four other
weaknesses. There is often a focus on mere goal setting rather than developing a plan
that can be implemented. The organization often fails to take into account
environmental factors that hinder goal achievement, such as lack of resources or
management support. Organizations may also fail to monitor for changes, which may
require modification of goals or even make them irrelevant. Finally, there is the issue of
plain human neglect - failing to follow through on the goal.
he six steps of MBO process are shown below graphically;

1. Define organizational goals

2. Define employees objectives
3. Continuous monitoring performance and progress
4. Performance evaluation
5. Providing feedback
6. Performance appraisal

Let’s briefly look at each of these;

1. Define Organizational Goals
Goals are critical issues to organizational effectiveness, and they
serve a number of purposes. Organizations can also have
 several different kinds of goals, all of which must be appropriately
managed.
And a number of different kinds of managers must be involved in
setting goals. The goals set by the superiors are preliminary,
based on an analysis and judgment as to what can and what
should be accomplished by the organization within a certain
period.
2. Define Employees Objectives

After making sure that employees’ managers have informed of

pertinent general objectives, strategies and planning premises,
the manager can then proceed to work with employees in setting
their objectives.
The manager asks what goals the employees believe they can
accomplish in what time period, and with what resources. They
will then discuss some preliminary thoughts about what goals
seem feasible for the company or department.
Also, Read Four Common Ingredients that makes up an MBO
Program.
3. Continuous Monitoring Performance and
Progress
MBO process is not only essential for making line managers in
business organizations more effective but also equally important
for monitoring the performance and progress of employees.
For monitoring performance and progress the followings are
required;

 Identifying ineffective programs by comparing

performance with pre-established objectives,
 Using zero-based budgeting,
 Applying MBO concepts for measuring individual
and plans,
 Preparing long and short range objectives and
plans,
 Installing effective controls, and
  Designing sound organizational structure with clear,
responsibilities and decision-making authority at the
appropriate level.
4. Performance Evaluation
Under this MBO process performance review are made by the
participation of the concerned managers.
5. Providing Feedback
The filial ingredients in an MBO program are continuous feedback
on performance and goals that allow individuals to monitor and
correct their own actions.
This continuous feedback is supplemented by periodic formal
appraisal meetings which superiors and subordinates can review
progress toward goals, which lead to further feedback.
6. Performance Appraisal
Performance appraisals are a regular review of employee
performance within organizations. It is done at the last stage of
MBO process.
What is Management By Objectives and what are
the steps involved in it?

Posted in Principles of Management |   Email This Post

The concept of management by objectives is a logical extension of Goal Setting

theory. The Goal Setting theory studies the processes by which people set
goals for themselves and then put in efforts to achieve them. Evidence proves
that 90 percent of the time, performance improves with goal setting.
Comparatively high achievers set comparatively more difficult goals and they
are more satisfied with intrinsic rewards than extrinsic rewards. Management
by objectives is an extension of Goal theory as it involves systematic and
programmatic goal getting throughout an organization.

The concept of MBO was introduced by Peter Drucker in 1954 as a means of

using goals to improve people rather than to control them. Thus this concept
of MBO is also known as Goal management. It is based upon the assumption
that involvement leads to commitment and when an employee participates in
goal setting as well as setting standards for measurement of performance
towards that goal then the employees will be motivated to perform better and
in a manner that directly contributes to the achievement of organizational
objectives. Simply stated, “MBO is a process whereby both managers and
subordinates work together in identifying goals and setting up objectives and
makes plans together in order to achieve these objectives. Their objectives and
goals should be consistent with the organizational goals”.

What are the steps involved in the process of MBO?

The basic steps that are common in all the processes of management by
objective (MBO) are:-
1. Central goal setting: defining and verifying organizational objectives is
the first step in MBO process. Generally these objectives are set by central
management of the organization but it does so after consulting other
managers. Before setting of these objectives, an extensive assessment of the
available resources is made by the central management. It also conducts
market service and research along with making a forecast. Through this
elaborate analysis, the desired long run and short run objectives of the
organization are highlighted. The central management tries to make these
objectives realistic and specific. After setting these goals it is the responsibility
of the management that these are known to all members and are also under
stood by them.
2. Development and individual goal setting : After organization
objectives are established by the central management, the next step is to
establish the department goals. The top management needs to discuss these
objectives with the heads of the departments so that mutually agreed upon
objectives are established. Long range and short range goals are set by each
department in consultation with the top management. After the department
goals are established, the employees work with their managers to establish
their own individual goals which relate with the organization goals. These
participative goals are very important because It has been seen that employees
become highly motivated to achieve the objectives established by them. These
objectives for individuals should be specific and short range. These should
indicate the capability of the unit of the individual. Through this process all
the members of the organization become involved in the process of goal
setting.
3. Revision of job description : In the process of MBO resetting individual
goals involves a revision of job description of different positions in the
organization which in turn requires the revision of the entire structure of the
organization. The organization manuals and charts may also have to be
modified to portray the changes that have been introduced by the process of
MBO. The job description has to define the objectives, authority and
responsibility of different jobs. The connection of one job with all other jobs of
the organization also needs to be established clearly.
4. Matching goals : The establishment of objectives can not be fruitful
unless the resources and means required to achieve these objectives are
provided. Therefore the subordinates should be provided required tools and
materials which enables them to achieve the objectives efficiently and
effectively. Resource requirements can be measured precisely if the goals are
set precisely. This makes the process of resource allocation relatively easy.
Resource allocation should be made after consulting the subordinates.
5. Freedom implementation: The task team of manager and his
subordinates should be given freedom in deciding the way to utilize their
resources and the way to achieve their objectives. There should be very little or
no interference by the seniors as long as the team is working with in the
framework of organization policies.
6. Establishing check points: The process of MBO requires regularly
meetings between the managers and their subordinates to discuss the progress
achieve in the accomplishment of the objective established for the
subordinates. For this purpose the mangers need to establish the standards of
performance or check points to evaluate the progress of their subordinates.
These standards need to be specified as for as possible quantitatively and it
should also be ensured that these are completely understood by the
subordinates. This practices needs to be followed by all managers and these
should lead to an analysis of key results has the targets are represented in
terms of the results. The analysis of key results should be recorded in writing
and it generally contains information regarding :
(i) The overall objectives related with the job of subordinates.
(ii) The key results which must be achieved by the subordinate to fulfill his
objectives.
(iii) The long term and short term priorities, a subordinate needs to adhere to.
(iv.) The extent and scope of assistance expected by a subordinate from his
superior and other departmental managers and also the assistance, the
subordinates is required to extend to other departments of his organizations.
(v.) Nature of information and the reports receive by the subordinate to carry
out self evaluation.
(vi.) The standards use to evaluate the performance of the subordinate.
7. Performance appraisal : An informal performance appraisal is generally
conducted in routine by the manager, a periodic review of performance of the
subordinates should also be conducted. Periodic reviews are required as the
priorities and conditions change constantly and need to be monitored
constantly. These reviews help the mangers as well as the subordinates to
modify the objectives or the methods whenever require. This significantly
increases the chances of achieving the goals and also ensures that no surprises
are found at the time of final appraisal. Periodic performance appraisal needs
to be based on measurable and fair standards so that these are completely
understood by the subordinates and there are also aware of the degree of
performance required at each step.
8. Counseling : Periodic performance review helps the subordinates in
improving his future performance