Maslow’s Hierarchy of Needs and Douglas McGregor’s Theory in IT industry

Maslow’s Hierarchy of Needs

Abraham Maslow’s "Hierarchy of Needs" is “the most generally mentioned theory of motivation and satisfaction (Weihrich & Koontz, 1999).” Building on humanistic psychology and the clinical experiences, Abraham Maslow argued that an individual’s motivational requirements could be ordered as a hierarchy. Once a given level of needs is satisfied, it no longer helps to motivate. Thus, next higher level of need has to be activated in order to motivate and thereby satisfy the individual (Luthans, 2005). Maslow (1943) identified five levels of need hierarchy: Following Figure 1, illustrates Maslow's hierarchy of needs. Maslow’s "Hierarchy of Needs" could also be applied to an organization and its employee’s performance (Gordon, 1965).

Video 1, Maslow's hierarchy of needs

Source: (youtube.com, 2019)

Accordingly to Maslow (1954), the different levels of needs on Maslow’s hierarchy follows:

• Physiological needs: According to Maslow’s hierarchy of needs, physiological needs (e.g. food, water, sleep and oxygen) are the fundamental aspects that allow the onset of need satisfaction because of their relation to physical and psychological survival. For example, food and water are necessary for survival, if these needs are not sufficiently met, the chances of satisfying other needs diminishes (Poduska, 1992).
• Safety needs:  According to Daft (2015), safety needs are composed of various components, including home stability, job security, and medical benefits. Maslow emphasized on the importance of a home that provided protection from threatening events (e.g. criminality, natural disasters), financial security (e.g. savings account), and a reliable government that provided sufficient protection to its society (e.g. law enforcement, public safety). These factors create a stable and organized environment that one can rely on.
• Belongingness and love needs: Humans are social creatures that crave interaction with others. This level of the hierarchy outlines the need for friendship, intimacy, family, and love. Humans have the need to give and receive love, to feel like they belong in a group. When deprived of these needs, individuals may experience loneliness or depression (Corporate Finance Institute, 2019).
• Esteem needs: We all desire to have respect and be respected by others, this includes self-esteem, confidence and a sense of self achievement (Shajahan & Shajahan, 2004).
• Self-actualization: This is realizing one’s full potential and this will differ from person to person. This is the highest level on the hierarchy and what we are all striving for (Shajahan & Shajahan, 2004).

The organization I work for is an IT company and can apply Maslow’s concepts to come away with some really useful insights.

• Physiological - Fundamentally, salary and other allowances are provided on time to satisfy these needs.  
• Safety – Permanent jobs, and other safety measures are introduced to reduce or eliminate physical damage to employees. Ensuring a safe workplace include providing conformable furniture and securing the building.
• Belonging – Friendly working environment with superiors and subordinates, trust and two-way communication, respect to each others are practiced in the organization. 
• Esteem – Employees are provided with equal opportunities with attractive bonuses, foreign travel, and entertainment allowances to satisfy these esteem needs. In addition to that, all the resources are well recognized with monthly/quarterly/annually performance rewards (BRAVO award/Presidents award).

Douglas McGregor’s Theory 

Video 2, Douglas Mcgregor X and Y Theory

Source: (youtube.com, 2020)

Theory X

Theory X is based on traditional assumptions about employees or resources and the conventional approach of management is used as a base. (Madumere, 1999).

According to McGregor (2016), Theory X assumes that employees are naturally unmotivated and dislike working, and this encourages an authoritarian style of management. According to this view, management should actively interfere to get things done. This style of management assumes that resources:

• Dislike working.
• Avoid responsibility and need to be directed.
• Have to be controlled, forced, and threatened to deliver what’s required.
• Need to be managed at each step, with controls put in place.
• Need to be enticed to produce results; otherwise they have no drive or incentive to work

X-Type organizations tend to be top heavy, with managers and supervisors needed at each step to manage staff. There is little delegation of authority and control remains firmly centralized (Mgbere, 2009).

Theory Y

According to McGregor (2016), Theory Y expounds a participative style of management that is de-centralized. Employees are happy to work, self-motivated, passionate of the work, creative and innovative, and enjoy working with greater responsibility. It assumes that workers:

• Resources are highly motivated and take responsibility to fulfill the goals they are given.
• Accept and Seek responsibility and do not need much direction on day today activities.
• Consider work as a natural a part of life and solve work issues imaginatively.

This more participative management style tends to be more broadly applicable. In Y-Type organizations, people at lower levels of the organization are involved in decision making and have more responsibility (Keyode, 2013).

 

For an instance, the organization I work for, is a leading IT company and always seeking Type Y resources who are self-motivated and can work with minimum training and guidance. Managers create and encourage a work environment which provides opportunities to employees to take initiative and self-direction. Employees should be given chances to contribute to organizational well-being. Theory Y encourages teamwork and participative decision making in an organization. Theory Y discovers the ways in which an employee can make significant contributions in an organization. It harmonizes and matches employees’ needs and aspirations with organizational needs and aspirations. Because of the Type Y resources, organization is achieving organizations short and long term goals by creating a positive environment.

Conclusion

Theory X and Theory Y relates to Maslow's hierarchy of needs in how human behavior and motivation is the main priority in the workplace in order to maximize result. In relations to Theory Y the organization is trying to produce the most symbiotic relationship between the managers and workers which relates to Maslow's hierarchy of needs of Self Actualization and Esteem. For Self Actualization the manager needs to encourage the optimum workplace through morality, creativity, spontaneity, problem solving, lack of prejudice, and acceptance of facts. It will relate to esteem once the manager is making an attempt to promote self-esteem, confidence, achievement, respect of others, and respect by others. 

Very few organizations use Theory X techniques. Theory X encourages use of tight control and supervision and takes a negative view of employees. It suggests that employees are hesitant to organizational changes. Therefore, it does not encourage innovation and encourages an authoritarian style of management. Many organizations use Theory Y techniques. Theory Y encourages decentralization of authority, corporation, teamwork and involving in decision making in an organization. It tries to harmonize and match employees’ needs and aspirations with organizational needs and aspirations. 

References

1. Clayton, M. (2020). Douglas McGregor and Theory X & Theory Y: Process of Model of Motivation. YouTube. Available at: https://www.youtube.com/watch?v=fS5iqEf1Azs..
2. Corporate Finance Institute (2019). Maslow’s Hierarchy of Needs - Overview, Explanation, and Examples. [online] Corporate Finance Institute. Available at: https://corporatefinanceinstitute.com/resources/knowledge/other/maslows-hierarchy-of-needs/.
3. Gordon, G.G (1965). The relationship of satisfiers and dissatisfiers to productivity, turnover and morale, American Psychologist. 20, 499-502
4. Kayode, O (2013). Application of Theory X & Y in Classroom Management, International Journal of Education and Research, Vol 1, No. 5
5. Keyode, O., (2013). “APPLICATION OF THEORY X AND Y IN CLASSROOM MANAGEMENT”, International Journal of Education and Research, Vol. 1 No. 5, pp. 1-9
6. Luthans, F. (2005) Organizational behavior. 10th ed. McGraw-Hill.
7. Madumere, S.C., (1999). “Organisational Management and Theory”, Bilesanmi (Nig) Press, Shomolu.
8. Maslow, A. H. (1943) A theory of human motivation. Psychological Review, July, 370-396.
9. Maslow, A. H. (1954). Motivation and Personality: NY: Harper
10. McGregor, D. (1960). The Human Side of Enterprise. MaGraw-Hill, New York.
11. Mgbere, O., (2009). “Exploring the Relationship between Organizational Culture, Leadership Styles and Corporate Performance: An Overview”, Journal of Strategic Management Education, 5 (3&4), pp. 187-202.
12. Poduska, B. (1992). Money, marriage, and Maslow’s hierarchy of needs. The American Behavioral Scientist, 35(6), 756-770.
13. Poston, B., 2009. Maslow’s hierarchy of needs. The Surgical Technologist, 41(8), pp.347-353.
14. Shajahan, D. S. & Shajahan, L. (2004) Organization behavior. New Age International Publications.
15. Taormina, R. J., & Gao, J. H. (2013). Maslow and the motivation hierarchy: Measuring satisfaction of the needs. The American Journal of Psychology, 126(2), 155-177. 
16. Weihrich, H. & Koontz H. (1999) Management: A global perspective. 10th ed. McGraw-Hill. Inc.
17. Why (2019). Why Maslow’s Hierarchy Of Needs Matters. [online] YouTube. Available at: https://youtu.be/L0PKWTta7lU.