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Solution
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs is a theory proposed by psychologist Abraham Maslow that outlines the basic human motivations in life. According to Corporate Finance Institute (2024), it argues that people are motivated to fulfill basic needs before moving on to other needs. The hierarchy has five levels of needs, starting with physiological needs like food and water. Once those are met, the next level is safety needs, followed by love/belonging, esteem, and finally self-actualisation – the desire to fulfill one’s potential. The theory is that humans are motivated to achieve higher needs only after fulfilling each lower-level need first. This helps explain what motivates human behavior and development.
Business Benefits
When employees feel their needs of belonging and esteem are fulfilled at work, it conveys significant benefits to a business according to Maslow’s Hierarchy of Needs theory. Employees who feel valued through fair treatment, inclusion in decision-making, and respect from managers and coworkers are less likely to dispute issues or become dissatisfied in their roles as evidenced by Herrity (2022). They are more motivated to remain with an organisation long-term rather than seeking opportunities elsewhere. This translates directly to the bottom line, as companies avoid high turnover costs associated with repeated recruitment, hiring and training of new staff. Additionally, employees experiencing belongingness and esteem in the workplace tend to be more engaged and productive team members who go above and beyond to help the business succeed. Addressing these mid-level psychological needs fosters organisational commitment and minimises disruptions to operations, boosting productivity and profits.
Human benefits
When people feel valued, included and treated fairly according to Maslow’s theory, there are important human benefits. Individuals experience higher motivation and job satisfaction when their needs for belongingness and esteem are fulfilled (Herrity, 2022). Feeling respected and that their contributions matter promotes well-being and quality of life. Having a sense of belonging and worth in the professional community improves psychological health and fosters engagement, productivity and life happiness.
Daniel Pink’s 3 elements of motivation
Daniel Pink’s theory argues that financial rewards are not as motivating as intrinsic factors for most knowledge or creative work. Pink believes motivation is driven by autonomy, mastery, and purpose (MindTools, 2023). Workers need independence and control over their tasks. They desire to continuously improve skills and abilities at something that matters. Providing these intrinsic factors better engages employees and leads to quality work compared to reliance on only external rewards.
Business Benefits
Daniel Pink’s theory that autonomy, mastery and purpose are primary motivators has important business implications. When employees feel empowered over their work, are challenged to continuously improve their skills, and see the value of their contributions, they find more satisfaction and engagement in their roles (Choi, 2024). This translates to significant benefits for companies. Workers who experience meaningful purpose and autonomy are less likely to leave, reducing costly turnover. They also bring innovative ideas from having ownership over their work. Additionally, employees motivated by mastery goals take pride in their work and consistently provide better quality. Together, this means higher retention, productivity and profits for organizations that apply Pink’s self-determination principles of motivation.
Human Benefits
When people experience autonomy, mastery and purpose at work as per Daniel Pink’s theory, there are important human benefits. Employees who feel empowered and able to continuously challenge themselves find higher motivation and satisfaction in their jobs. Having a sense that one’s work is valuable promotes well-being, life engagement and quality of life (BiteSize Learning, 2024). The intrinsic motivations of self-direction, skill development and meaningful purpose improve psychological health and foster enhanced performance and happiness.
Both the business and human benefits highlighted are compelling. Workers who feel motivated intrinsically through autonomy, mastery and purpose will not only be more productive and invested in their roles, but also experience improved well-being and life satisfaction. This is a win-win scenario that more companies should seek to implement for mutually beneficial outcomes.
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