(Solution) 5C003 ability to do this with a written argument, which poses different theoretical perspectives, as well as your own (AC 2.1)

Solution

2.1 Theories and Thinking

1. Maslow’s Hierarchy of Needs
   Maslow’s Hierarchy of Needs is a motivational theory that outlines five levels of human needs: physiological, safety, belongingness, esteem, and self-actualisation (‌Mcleod, 2024). Individuals must satisfy lower-level needs before they can focus on higher-level ones.

Benefits to Individuals:
When employees feel included and valued, their belongingness and esteem needs are met, leading to higher job satisfaction and a sense of purpose (‌ Dewi et al. 2020). Satisfying these needs can enhance overall well-being, reduce stress, and foster personal growth, ultimately leading to self-actualization, where individuals reach their full potential at work.

Benefits to Business:
From a business perspective, Mcleod (2024) points out that when employees’ psychological needs are met, they are more engaged, motivated, and productive. This can result in higher levels of creativity, innovation, and commitment to organisational goals. Additionally, businesses benefit from reduced turnover and absenteeism, as satisfied employees are more likely to remain with the company, contributing to a stable and positive work environment.

2. David Rock’s SCARF Model

David Rock’s SCARF Model includes five domains that influence social behavior, each affecting how individuals perceive and respond to their work environment as outlined by ‌ Mind Tools (2008):

1. Status:
   Status refers to an individual’s relative importance or rank within a group. People are sensitive to their status and seek recognition and respect. A perceived increase in status boosts self-esteem and motivation, while a decrease can led to feelings of insignificance or anxiety.
2. Certainty:
   Certainty involves the ability to predict the future and understand what to expect. People feel more comfortable and focused when they have a clear sense of direction and stability. Uncertainty can cause stress and reduce cognitive resources, making it harder to perform tasks effectively.
3. Autonomy:
   Autonomy is the sense of control over one’s actions and decisions. When people feel they have the freedom to make choices and influence their work, they are more motivated and engaged. A lack of autonomy can lead to feelings of helplessness and reduced job satisfaction (Arnold, 2023).
4. Relatedness:
   Relatedness refers to the sense of connection and belonging with others. Humans have a natural desire to form bonds and be part of a group. Positive relationships and a sense of community in the workplace enhance trust, collaboration, and well-being, while isolation can lead to disengagement.
5. Fairness:
   Fairness is the perception that one is being treated justly and equally compared to others. Fair treatment fosters trust and loyalty, while perceived unfairness can lead to resentment, conflict, and a decrease in motivation and morale.

Benefits to Individuals:

When employees experience fairness and relatedness at work, they feel respected and connected to their peers, which enhances trust and collaboration (CIPD, 2024b). Ensuring that these needs are met reduces stress and promotes a positive emotional state, leading to better mental health and higher engagement levels. The model also emphasises the importance of autonomy, which empowers individuals to take ownership of their work, increasing job satisfaction and personal fulfillment.

Benefits to Business:

Addressing the SCARF domains helps businesses create a work environment where employees feel valued and secure as evidenced by Mind Tools (2008). This leads to improved teamwork, greater innovation, and a more cohesive organizational culture. By fostering fairness and inclusion, companies can reduce workplace conflicts and increase employee retention, ultimately driving better overall performance and competitive advantage.

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