The Influence of ''Maslow's Theory'' and ''Performance Theories'' on Organisation Productivity

The relationship between employee motivation and productivity has long been a topic of interest for researchers and practitioners. Abraham Maslow's hierarchy of needs theory and various performance theories have been widely studied and applied in organisational settings. This article will explore the relationship between Maslow's hierarchy of needs theory and performance theories and their impact on company productivity.

Maslow's Theory (1954)

Maslow's hierarchy of needs theory posits that human needs are arranged in a hierarchy, with physiological needs at the bottom and self-actualization needs at the top. The theory suggests that individuals are motivated to satisfy their lower level needs first before moving on to higher level needs. Maslow's theory has been widely applied in organizational settings to understand employee motivation and job satisfaction (Mcleod,2018).

Maslow's hierarchy of needs:

(Source: Maslow,1954)


  • Physiological needs - these are biological requirements for human survival, e.g. air, food, drink, shelter, clothing, warmth, sleep. If these needs are not satisfied the human body cannot function optimally. Maslow considered physiological needs the most important as all the other needs become secondary until these needs are met (Mcleod,2018).

  • Safety needs - protection from elements, security, order, law, stability, freedom from fear (Mcleod,2018).

  • Love and belongingness needs - after physiological and safety needs have been fulfilled, the third level of human needs is social and involves feelings of belongingness. The need for interpersonal relationships motivates behavior. Examples include friendship, intimacy, trust, and acceptance, receiving and giving affection and love. Affiliating, being part of a group (family, friends, work) (Mcleod,2018).

  • 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 (Mcleod,2018).

  • Self-actualization needs - realizing personal potential, self-fulfillment, seeking personal growth and peak experiences. A desire “to become everything one is capable of becoming” (Mcleod,2018).


There are many organizations that have applied Maslow's hierarchy of needs in their management practices. Here are a few examples along with references:

Google 

(Source: Google,2021)



Google's management philosophy includes a focus on satisfying employees' needs for autonomy, mastery, and purpose, which are related to Maslow's self-actualisation needs (Essounga, 2018). 



Southwest Airlines

(Source: Southwest Airlines,2016)
Southwest Airlines is known for its strong corporate culture, which emphasizes employee satisfaction and empowerment. By focusing on fulfilling employees' needs for social interaction and recognition, Southwest has been able to maintain high levels of employee engagement and job satisfaction (Roger,1996).



Whole Foods Market

(Source: Wikipedia,2021)

Whole Foods Market has implemented a number of programs to support employees' needs for personal and professional growth, including tuition reimbursement, leadership development programs, and opportunities to participate in decision-making and feedback processes (Kristin,2012)



These examples illustrate how organizations can apply Maslow's hierarchy of needs in their management practices to create a more engaged and productive workforce.


Literature Review for Maslow's theory:

According to Herzberg's two-factor theory, job satisfaction is influenced by two types of factors: hygiene factors and motivators. Hygiene factors include working conditions, salary, and job security, while motivators include opportunities for growth and recognition. Research has found that both hygiene factors and motivators play a significant role in employee motivation and satisfaction (Mohammed, Lina and Phillip, 2017).

In a study of the relationship between Maslow's hierarchy of needs theory and employee motivation, Ologbo and Okungbowa (2014) found that while Maslow's theory provided a useful framework for understanding employee motivation, there were limitations to the theory's application in the workplace. The authors suggested that other factors such as job design, organisational culture, and social relationships should also be considered in understanding employee motivation.

Managing Performance  

Performance management, according to Armstrong and Baron, is "a process that supports the successful management of individuals and teams in order to attain high levels of organisational performance. As a result, it creates a common understanding of what needs to be accomplished as well as a strategy for motivating and leading others that will guarantee success. It is "a strategy that relates to every activity of the organisation set in the context of its human resource policies, culture, style, and communications systems," they emphasise (Chartered Management Institute, 2012)

Performance Theories 

Performance theories are a set of models and frameworks that attempt to explain how employees' behavior and actions contribute to organizational outcomes. These theories have been developed based on various disciplines such as psychology, sociology, and management, and aim to provide insights into the factors that affect employee performance (Michael and Robyn, 2016).


Goal Theory:
(Source: the business professor, 2022)

Goal theory suggests that performance is driven by the goals individuals set for themselves. The theory posits that the more specific, challenging, and achievable the goals are, the better the performance will be (Locke and Latham, 2019). Goal theory is based on the premise that goals influence behavior, and the more challenging the goal, the greater the effort put in to achieve it.

The literature provides substantial evidence supporting goal theory. For instance, a study by Locke and Latham (2002) found that setting specific, challenging goals led to increased performance in various settings, including education, sports, and business. Similarly, a study by Gollwitzer et al. (2010) found that setting implementation intentions (i.e., specifying the when, where, and how of goal achievement) improved performance.

However, goal theory has some limitations. It assumes that individuals are solely motivated by achieving goals and overlooks other factors that might influence performance, such as situational factors (e.g., lack of resources, time constraints) or individual differences (e.g., personality, motivation, cognitive abilities).



Control Theory:
                       (Source: AOM Journals, 2017)

Control theory posits that performance is driven by the need to reduce discrepancies between actual and desired performance. The theory suggests that individuals monitor their performance continuously and adjust their behavior to achieve their desired outcomes (Carver and Scheier, 2018). Control theory emphasises the role of feedback, which is essential for individuals to monitor their progress and make necessary adjustments.

The literature provides empirical support for control theory. For example, a study by Harkin et al. (2015) found that feedback interventions led to improved performance in various domains, including education and healthcare. Similarly, a meta-analysis by Kluger and DeNisi (1996) found that feedback interventions led to an average effect size of 0.41 on performance.

However, control theory also has some limitations. It overlooks the importance of goal setting, which can provide direction and motivation to individuals. Additionally, control theory assumes that individuals have the necessary resources and skills to monitor their performance and make necessary adjustments, which may not always be the case.



Social Cognitive Theory:
(Source: Collidu,2020)

Social cognitive theory suggests that performance is influenced by the interaction between individuals, their environment, and their behavior (Bandura, 1986). The theory emphasises the role of observational learning, self-efficacy, and goal setting in shaping behavior. Social cognitive theory posits that individuals learn from observing others, and their behavior is influenced by their beliefs about their capabilities (self-efficacy).

The literature provides substantial empirical support for social cognitive theory. For instance, a study by Bandura et al. (2001) found that self-efficacy predicted academic achievement in high school students. Similarly, a meta-analysis by Phillips and Gully (1997) found that self-efficacy was positively related to job performance.

However, social cognitive theory also has some limitations. It overlooks the importance of situational factors and the role of emotions in shaping behavior. Additionally, social cognitive theory assumes that individuals have a high level of self-awareness, which may not always be the case.



As a Conclusion: Performance theories provide valuable insights into the factors that influence performance and how it can be improved. Goal theory emphasizes the importance of setting specific, challenging, and achievable goals, while control theory emphasizes the role of feedback in monitoring performance.



REFERENCES

Bandura, A. (1986). Social foundations of thought and action: A social cognitive theory. UK: Prentice-Hall, Inc.

Bandura, A., Barbaranelli, C., Caprara, G. V. and Pastorelli, C. (2001) Self-efficacy beliefs as shapers of children's aspirations and career trajectories. Child development, 72(1) 187-206. Available from https://doi.org/10.1111/1467-8624.00273  [Accessed 15 April 2023].

Carver, C. S. and Scheier, M. F. (2018) Perspectives on personality. 9th edition. UK: Pearson.

Chartered Management Institute, (2012) Performance Management Checklist.[online] UK: CMI. Available from https://www.managers.org.uk/wp-content/uploads/2020/03/CHK-180-Performance_Management-1.pdf  [Accessed 15 April 2023]. 

Essounga, Y. N. (2018) GOOGLE’S SECRET TO MOTIVATING THEIR EMPLOYEES SUCCESSFULLY. Journal of Strategic and International, 12 (3) 3-4. Available from https://www.researchgate.net/publication/326920436_GOOGLE'S_SECRET_TO_MOTIVATING_THEIR_EMPLOYEES_SUCCESSFULLY [Accessed 15 April 2023]. 

Gollwitzer, P. M., Sheeran, P., Michalski, V. and Seifert, A. E. (2010) When intentions go public: Does social reality widen the intention-behavior gap?. Psychological Science, 21(4) 531-533.Available from https://journals.sagepub.com/doi/abs/10.1177/0956797610364758  [Accessed 15 April 2023]. 

Harkin, B., Webb, T. L., Chang, B. P. I., Prestwich, A., Conner, M., Kellar, I., Benn, Y. and Sheeran, P. (2016) Does monitoring goal progress promote goal attainment? A meta-analysis of the experimental evidence. Psychological Bulletin, 142(2) 198-229. Available from https://psycnet.apa.org/record/2015-47048-003 [Accessed 15 April 2023]. 

Kristin, L. P. (2012) Whole Foods Market ™ Case Study: Leadership and Employee Retention.[case study] Wales: Johnson & Wales University ScholarsArchive@JWU. Available from https://scholarsarchive.jwu.edu/cgi/viewcontent.cgiarticle=1007&context=mba_student[Accessed 15 April 2023]. 

Kluger, A. N. and DeNisi, A. (1996) The effects of feedback interventions on performance: A historical review, a meta-analysis, and a preliminary feedback intervention theory. Psychological Bulletin, 119(2) 254-284. Available from https://psycnet.apa.org/record/1996-03010-007 [Accessed 15 April 2023]. 

Locke, E. A. and Latham, G. P. (2002) Building a practically useful theory of goal setting and task motivation: A 35-year odyssey. American Psychologist, 57(9) 705-717. Available from https://psycnet.apa.org/record/2002-17515-001 [Accessed 15 April 2023]. 

Locke, E. A. and Latham, G. P. (2019) New developments in goal setting and task performance.[online] UK: Routledge. Available from https://www.routledge.com/New-Developments-in-Goal-Setting-and-Task-Performance/Locke-Latham/p/book/9780815361744
[Accessed 15 April 2023]. 

Mcleod, S. (2018) Maslow's Hierarchy of Needs. [online] London: simply psychology. Available from https://www.simplypsychology.org/maslow.html [Accessed 15 April 2023]. 

Mohammed, A., Lina, S. A. and Phillip, M. (2017) Herzberg’s Two-Factor Theory. Life Science Journal, 14 (5) 1-5. Available from https://www.lifesciencesite.com/lsj/life140517/03_32120lsj140517_12_16.pdf [Accessed 15 April 2023]. 

Michael, T. L. and Robyn, L. R. (2016) Understanding employee motivation and organizational performance: Arguments for a set-theoretic approach. Journal of Innovation & Knowledge, 1 (3) 162-169. Available from https://doi.org/10.1016/j.jik.2016.01.004  [Accessed 15 April 2023]. 

Ologbo, A.C. and Okungbowa, S.O. (2014) The Relationship between Maslow's Hierarchy of Needs Theory and Employee Motivation in Organizational Behavior. Journal of Management and Social Sciences, 10(2), 52-59. Available from https://www.researchgate.net/publication/328428945_The_Relationship_between_Maslow's_Hierarchy_of_Needs_Theory_and_Employee_Motivation_in_Organizational_Behavior   [Accessed 15 April 2023]. 

Phillips, J. S. and Gully, S. M. (1997) Role of goal orientation, ability, need for achievement, and locus of control in the self-efficacy and goal-setting process. Journal of Applied Psychology, 82(5) 792-802.Available from https://doi.org/10.1037/0021-9010.82.5.792 [Accessed 15 April 2023]. 

Roger, H (1996) Southwest airlines: A case study linking employee needs satisfaction and organizational capabilities to competitive advantage. Wiley Online Library, 35 (4) 515- 527. Available from https://doi.org/10.1002/(SICI)1099-050X(199624)35:4%3C513::AID-HRM5%3E3.0.CO;2-Z [Accessed 15 April 2023]. 






























Comments

  1. Within this article, the author has a concern with the well popular topic in the HRM field, Here most bachelor and MBA students have conducted researches studies on this topic,
    Here, Maslow's Theory and Herzberg's two-factor theory, are mainly associated with employee motivation and satisfaction. then discussed workplace performance and related approaches. Here, goal theory can be identified as associated with performance.
    Organizational productivity is of high importance for profitability and long-term sustainability, especially productivity mainly associated with employee performance, attitudes, and perception, hence Maslow's Theory, gradually explains how people are satisfied in different layers.

    ReplyDelete
    Replies
    1. Thank you for sharing your thoughts on the article. It's true that Maslow's Hierarchy of Needs and Herzberg's Two-Factor Theory are commonly associated with employee motivation and satisfaction, while the Goal Theory is related to performance. It's also true that organisational productivity is crucial for long-term sustainability, and employee performance, attitudes, and perception play a significant role in it. Maslow's Theory, in particular, provides insights into how people can be motivated and satisfied by fulfilling their different needs at various levels. Overall, these theories can help organisations understand and improve their employees' performance and well-being, ultimately leading to improved productivity and profitability.

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  2. You have done the article very creatively Chamindu . When Abraham Maslow created his Hierarchy of Needs, he argued that humans are motivated by five essential needs: physiological, safety, social, self-esteem and self-actualization (also known as self - fulfilment). Maslow's hierarchy starts with the fundamental means of survival: food, clothing, shelter, and safety. Then, it progresses to the more sophisticated, intangible necessities for achieving internal growth — a sense of belonging, self-esteem, and self-actualization. Maslow's model enables us to think more creatively and strategically as practitioners. It helps us and our clients understand career development plans, practices, goals, and experiences. It empowers us with the knowledge needed to identify interests, skill sets, strengths, and values.

    ReplyDelete
    Replies
    1. Thank you for the comment. Maslow's hierarchy of needs is indeed a well-known and widely used theory in the field of psychology. However, there has been criticism of the theory, particularly regarding its applicability to different cultures and its overemphasis on individualistic values.

      For instance, some studies suggest that the hierarchy of needs may not be applicable to collectivistic cultures, where social and community-oriented needs may take precedence over individualistic needs (Singelis, Triandis, Bhawuk and Gelfand, 1995). Additionally, some researchers have criticised the theory for its limited scope and the oversimplification of human needs (Ryan and Deci, 2000).

      Furthermore, there is debate about the order and priority of needs in the hierarchy. Some argue that the order of needs may vary depending on individual differences and circumstances (Sheldon, Elliot, Kim and Kasser, 2001).

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  3. Very technically done. The motivation is a significant element for performance and employers directly or indirectly try thier best to meet the elements outlined in Maslow's theory to keep up the morale of thier empoyees. However, human needs are different from each other and priority levels are different as well. How challenging this is for employers?

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    Replies
    1. Thank you for your comment. The issue of employee motivation and the challenge of meeting different employees' needs is a complex and important one. In the literature, Maslow's hierarchy of needs is a well-known theory that has been used to explain the motivational factors of individuals in the workplace (Maslow, 1943). However, as you have pointed out, employees' needs and priorities are unique, and employers need to consider various factors to meet their diverse needs.

      The literature suggests that employers face several challenges in meeting the diverse needs of employees. One of the main challenges is that employee needs are constantly changing, and employers must continually assess and adjust their motivational strategies to ensure they are meeting the evolving needs of their workforce (Robbins and Judge, 2019). For example, the needs of younger employees may differ significantly from those of older employees, and employers must be able to identify and respond to these differences.

      Another challenge that employers face is the difficulty in identifying and prioritising the needs of individual employees. While Maslow's hierarchy provides a useful framework, it is not a one-size-fits-all solution, and employers must be able to tailor their motivational strategies to meet the unique needs of each employee (Herzberg, Mausner and Snyderman, 1959). This requires a thorough understanding of employees' individual goals, preferences, and values.

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  4. Fantastic article Chamuda! It's amazing to observe how different performance theories and Maslow's theory of hierarchy of needs are used in organizational contexts to understand employee motivation and productivity. It is encouraging to see how companies like Google, Southwest Airlines, and Whole Foods Market have incorporated Maslow's theory into their management strategies. The analysis of performance theories like goal theory and the interaction between Maslow's theory of human motivation in the workplace offers important new insights into the factors that affect organizational results. Overall, this essay highlights how crucial it is to understand and take care of employees' requirements and motivation in order to increase organizational productivity.

    ReplyDelete

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