Maslow’s Hierarchy of Needs Theory: Abraham Maslow was a social psychologist who was

interested in a broad spectrum of human psychological needs rather than on individual

psychological problems. He is best known for his hierarchy-of-needs theory. Depicted in a
pyramid, the theory organizes the different levels of human psychological and physical needs in
order of importance.
The Hierarchy of Needs is as follows:
i. Physiological Needs (basic issues of survival such as salary and stable employment)
ii. Security Needs (stable physical and emotional environment issues such as benefits,
pension, safe work environment, and fair work practices)
iii. "Belongingness" Needs (social acceptance issues such as friendship or cooperation on
the job)
iv. Esteem Needs (positive self-image and respect and recognition issues such as job titles,
nice work spaces, and prestigious job assignments.)
v. Self-Actualization Needs (achievement issues such as workplace autonomy, challenging
work, and subject matter expert status on the job)

Two factor theory: The two-factor theory (also known as Herzberg's motivation-hygiene theory
and dual-factor theory) states that there are certain factors in the workplace that cause job
satisfaction while a separate set of factors cause dissatisfaction, all of which act independently of
each other. It was developed by psychologist Frederick Herzberg. He’s especially recognized for
his two-factor theory, which hypothesized that are two different sets of factors governing job
satisfaction and job dissatisfaction: “hygiene factors,” or extrinsic motivators and “motivation
factors,” or intrinsic motivators.
Hygiene factors, or extrinsic motivators, tend to represent more tangible, basic needs i.e., the
kinds of needs included in the existence category of needs in the ERG theory or in the lower levels
of Maslow’s hierarchy of needs. Extrinsic motivators include status, job security, salary, and fringe
benefits. It’s important for managers to realize that not providing the appropriate and expected
extrinsic motivators will sow dissatisfaction and decrease motivation among employees.
Motivation factors, or intrinsic motivators, tend to represent less tangible, more emotional needs
i.e., the kinds of needs identified in the “relatedness” and “growth” categories of needs in the ERG
theory and in the higher levels of Maslow’s hierarchy of needs. Intrinsic motivators include
challenging work, recognition, relationships, and growth potential. Managers need to recognize
that while these needs may fall outside the more traditional scope of what a workplace ought to
provide, they can be critical to strong individual and team performance.
Theory X and Theory Y: Douglas McGregor expressed his views of human nature in two sets of
assumptions. They are popularly known as ‘Theory X’ and ‘Theory Y’. Theory X stands for the set
of traditional beliefs held, while Theory-Y stands for the set of beliefs based on researchers in
behavioral science which are concerned with modern social views on the man at work.
These two theories represent the extreme ranges of assumptions. The managerial attitudes and
supervisory practices resulting from such assumptions have an important bearing on employees’
behavior.
Theory X assumptions are negative;

• Employees inherently dislike work and, whenever possible, will attempt to avoid it.
• Since’ employees dislike work, they must be coerced, controlled, or threatened with
punishment.
• Employees will avoid responsibilities and seek formal direction whenever possible.
• Most workers place security above all other factors and will display little ambition.
Theory Y assumptions are positive;

• Employees can view work as being as natural as rest or play.

• People will exercise self-direction and self-control if they are committed to the objectives.
• The average person can learn to accept, even seek, responsibility.
• The ability to make innovative decisions is widely dispersed throughout the population.
Thus, Managers who accept theory-X assumptions tend to structure, control and closely
supervise their employees. These managers think that external control is appropriate for dealing
with unreliable, irresponsible and immature people. Managers who accept theory-Y assumptions
about the nature of man do not attempt to structure, control or closely supervise the employees.