how human needs may or may not be satisfied at work

Motivation – Human Needs (Cambridge AS/A‑Level Business 9609)

2.2.1 Motivation as a Tool of Management & Leadership

Motivation is the process by which managers influence the direction, intensity and persistence of employee effort. It is a core management tool because it:

• Aligns individual goals with organisational objectives.
• Improves productivity and quality of output.
• Reduces turnover and absenteeism.
• Supports the implementation of leadership styles – e.g. transformational leaders inspire higher‑order needs, while transactional leaders focus on clear reward‑punishment links.

2.2.2 Human Needs – Simple Explanation

Needs are basic requirements that must be satisfied for individuals to function effectively and feel satisfied at work. Unmet needs can lead to dissatisfaction, reduced effort and absenteeism.

Maslow’s Hierarchy of Needs (1943) (2.2.3a)

• Physiological – food, water, rest, adequate wages.
• Safety – job security, safe working conditions, clear policies.
• Social (Belonging) – friendships, team spirit, supportive relationships.
• Esteem – recognition, status, achievement.
• Self‑actualisation – personal growth, fulfilment, creativity.

Alderfer’s ERG Theory (1969) (2.2.3b)

• Existence – physiological + safety needs.
• Relatedness – social + esteem needs.
• Growth – self‑actualisation and personal development.

ERG allows “frustration‑regression”: if higher‑order needs are blocked, people may refocus on lower‑order needs.

Herzberg’s Two‑Factor Theory (1959) (2.2.3c)

Hygiene factors prevent dissatisfaction but do not create lasting motivation; motivators are needed for genuine engagement.

McClelland’s Need Theory (1961) (2.2.3d)

• Need for Achievement (nAch) – desire to excel and succeed.
• Need for Power (nPow) – desire to influence or control others.
• Need for Affiliation (nAff) – desire for friendly relationships.

Taylor’s Scientific Management (1911) (2.2.3e)

• Focuses on efficiency through task‑specialisation, standardisation and monetary incentives (e.g., piece‑rate pay).
• Motivation is viewed mainly as a function of financial reward.

Mayo’s Hawthorne Studies (1920s‑30s) (2.2.3f)

• Showed that social factors, employee attitudes and informal group norms affect productivity.
• Motivation is enhanced by attention, communication and a sense of belonging.

Vroom’s Expectancy Theory (1964) (2.2.3g)

• Motivation = Expectancy × Instrumentality × Valence.
• Expectancy: belief that effort will lead to performance.
• Instrumentality: belief that performance will lead to a reward.
• Valence: value placed on the reward.
• Managers must ensure a clear, credible link between effort, performance and valued outcomes.

2.2.4 Motivation Methods – Financial & Non‑Financial

• Financial motivators
  • Time‑based pay (salary, hourly wages)
  • Performance‑related pay (piece‑rate, commission, bonuses)
  • Profit‑sharing and share‑option schemes
  • Overtime premiums and shift differentials
• Non‑financial motivators
  • Job design & enrichment (autonomy, task variety, feedback)
  • Recognition & reward programmes (employee of the month, public praise)
  • Career development (training, mentorship, clear promotion pathways)
  • Work‑life balance initiatives (flexible hours, remote work, wellbeing programmes)
  • Team‑building activities and supportive workplace culture

Matching methods to needs (2.2.2): when a specific need is identified, choose the most direct motivator. For example, if safety needs are unmet, a financial safety‑bonus or improved health‑and‑safety policy (hygiene factor) is more appropriate than a public award for achievement.

2.2.5 How Needs May Be Satisfied at Work

1. Job Design & Enrichment – Autonomy, variety and feedback address esteem, growth and self‑actualisation.
2. Compensation & Security – Competitive wages, contracts and health‑and‑safety policies meet physiological and safety needs.
3. Team‑Building & Social Activities – Group projects, clubs and informal gatherings satisfy belonging and affiliation needs.
4. Recognition Systems – Awards, promotions and public acknowledgment target esteem and achievement needs.
5. Training, Coaching & Career Pathways – Support personal development and self‑actualisation.
6. Clear Performance‑Reward Links – Use Vroom’s expectancy framework to ensure employees see how effort leads to valued rewards.

How Needs May Remain Unsatisfied

• Inconsistent or perceived unfair reward systems (e.g., favouritism).
• Poor communication about job security or organisational change.
• Training programmes that exist in name only, offering no real advancement.
• Cultural climate that discourages collaboration, undermining social needs.
• Excessive workload or shift patterns that erode work‑life balance, threatening physiological and safety needs.

Comparative Summary of Need Theories (Syllabus Requirement – 2.2.3)

Case Study Illustration

Company X – Retail Chain

Company X introduced a performance‑based bonus scheme (a motivator) but kept base wages below industry average (a hygiene factor). Turnover rose despite the bonus because physiological and safety needs were still threatened. After revising the pay structure, adding flexible scheduling and improving communication about job security, turnover fell by 15 % and sales increased. The case shows the interaction of multiple need levels and the importance of balancing financial and non‑financial motivators.

Implications for Managers (2.2.1)

• Diagnose which needs are most salient for each employee group (e.g., new graduates vs. senior staff).
• Use a mix of financial and non‑financial methods to address both lower‑order and higher‑order needs.
• Apply Herzberg’s insight: first eliminate hygiene problems, then introduce motivators.
• Employ Vroom’s expectancy framework to ensure that rewards are valued and perceived as attainable.
• Tailor motivation strategies to individual differences (McClelland) and to cultural contexts (recognising limits of Maslow).
• Monitor and review policies regularly to prevent needs from becoming unmet again.

Sample Exam Questions (Cambridge AS/A‑Level)

1. Explain how Maslow’s hierarchy can be used to analyse employee motivation in a manufacturing firm.
2. Compare and contrast Herzberg’s two‑factor theory with McClelland’s need theory, giving examples of how each could be applied in a retail environment.
3. Discuss why improving only hygiene factors may not lead to higher performance, using a real‑world example.
4. Evaluate the relevance of Vroom’s expectancy theory for motivating sales staff in a call‑centre.
5. Analyse how Taylor’s scientific management and Mayo’s Hawthorne findings together influence modern performance‑related pay schemes.