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Learning Goal: I’m working on a management discussion question and need an expla

by | Sep 1, 2022 | Management | 0 comments


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Learning Goal: I’m working on a management discussion question and need an explanation and answer to help me learn.
Student 1 Taylor
Hi Class + Professor,
I found this question to be quite interesting- while it makes perfect sense to think of benefits in terms of Maslow’s Hierarchy of Needs, I’ve never put it together before! Thanks for the thought-provoking discussion prompt!
Maslow’s Hierarchy of Needs Theory is based on the idea that individual’s are motivated by needs that are ranked based on urgency. The five needs, ranked from most urgent to least are: physiological needs, safety needs, social needs, esteem needs, self-actualization needs. The needs are grouped into two categories: higher-order needs and lower-order needs. Physiological and safety needs are lower orders needs, as they are the foundation of human motivation. Then, social, esteem, and self-actualization needs build on top of them as higher-order needs. An employee’s stage in the hierarchy might affect the benefits that they desire because if their needs in an urgent category (or a lower-order need) are not met, they will not care about needs in a less urgent (or higher-order needs) category. For example, if their need for physiological needs are not met- perhaps they are currently unhoused due to not being able to afford rent because of a low salary, they will not care about the social needs, for example a work happy hour.
When considering Maslow’s Hierarchy of Needs, the implications for organizations as they try to design benefits packages that their employees will value, are that they must first focus on the lower-order needs (physiological and safety) before considering higher-order needs (social, esteem, and self-actualization). “The managers must identify the need level at which the employee is existing” and then work with the human resources team and the individual to communicate the benefits that will most benefit their current situation (MSG, n.d.). For example, if an employee is secure in their physiological and safety needs- they have housing, an appropriate salary, and job security, the organization might focus on communicating benefits that will fulfill their social needs, like making sure they work well with their team or that they know there is a holiday happy hour.
MSG. (n.d.). MSG Management Study Guide. Maslows Hierarchy of Needs Theory. Retrieved from…
Student 2 Joshua
Employees are compensated by employers at a minimum to ensure that employees are able to afford sustenance and fulfill any financial obligations that employees may have, however in the United States organizations use efficiency wages in order to stimulate increased employee performance. Stewart et al (2018) argue that increasing employee compensation increases “employee productivity, efficiency, spirit, loyalty, and retention” (Stewart et al (2018) pg. 67). Thus, it can be argued that whilst employers only need to provide compensation which covers employees’ psychological and safety needs, it is mutually beneficial for employers and employees to have employees provided with compensation which satisfies their social and esteem needs. Furthermore, Lahida et al (2017) conducted a study which shows that organizations which are considerate of employees’ needs are able to retain talent. This alleviates hiring, training, and onboarding costs associated with involuntary turnover rates. Lahida et al (2017) also explore how an organizations’ work environment is also a crucial component of employees’ sensemaking, thus it can be posited that whilst a work environment is not a part of employees’ compensation per se, it could be argued that employees are compensated tangibly with a nicer work environment in order to positively influence their sensemaking whilst they are at work.
Lahida, N. W., Pangemanan, S. S., & Rumokoy, F. S. (2017). Analyzing Maslow’s Hierarchy of Needs, Compensation, and Work Environment on Employee Retention at PT Bank Mandiri (PERSERO) TBK MANADO BRANCH SUDIRMAN. Jurnal Emba: Jurnal Riset Ekonomi, Manajemen, Bisnis Dan Akuntansi, 5(3).
Stewart, C., Nodoushani, O., & Stumpf, J. (2018, July). Cultivating employees using Maslow’s hierarchy of needs. In Competition Forum (Vol. 16, No. 2, pp. 67-75). American Society for Competitiveness.


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