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Management Practices and Organisational Behaviour

Notes ungratified needs that motivate behaviour. As a lower level of need is met, a person progresses
to the next higher level of need as a source of motivation. Hence, people progress up the
hierarchy as they successively gratify each level of need. Some possible work-related means of
fulfilling the various needs in the hierarchy are shown in Table 11.2 below:

Table 11.2: Maslow's Hierarchy of Needs and Potential Means of Fulfilment at Work
Potential Means of Fulfilment at work

Maslow recognized that a need might not have to be completely fulfilled before we start directing
out attention to the next level in the hierarchy. At the same time, he argued that once we have
essentially fulfilled a need, that need ceases to be a motivator and we begin to feel tension to
fulfil needs at the next level. While Maslow's hierarchy has stimulated thinking about the
various needs that individuals have, it has some serious shortcomings. Research suggests that
needs may cluster into two or three categories rather than five. Also, the hierarchy of needs may
not be the same for everyone. For instance, entrepreneurs frequently pursue their dreams for
years despite the relative deprivation of lower level needs. Finally, individuals often seem to
work on satisfying several needs at once, even though some needs may be more important than
others at a given point of time.

11.2.2 Theory X and Theory Y

One important organisational implication of the hierarchy of needs concerns the philosophies
and techniques that have a bearing on how to manage people at work. Douglas McGregor,
taking a cue on motivation from Maslow's need-based theory, grouped the physiological and
safety needs as "lower-order" needs and the social, esteem and self-actualization needs as "upper-
order" needs. McGregor proposed two alternative sets of assumptions about people at work,
based upon which set of needs were the active motivators. He labelled these sets of
assumptions – one basically negative as – Theory X and the other basically positive – as
Theory Y. After viewing the way in which managers dealt with employees, McGregor concluded
that a manager's view of the nature of human beings is based on a certain grouping of assumptions
and that he or she tends to mould his or her behaviour toward subordinates according to these
assumptions.
According to McGregor, people should be treated differently according to whether they are
motivated by lower-order or higher order needs. Specifically, McGregor believed that Theory X
assumptions are appropriate for employees motivated by lower-order needs. Theory Y
assumptions, in contrast, are appropriate for employees motivated by higher-order needs, and
Theory X assumptions are then inappropriate. In addition, McGregor believed that in the 1950s
when he was writing, the majority of American workers had satisfied their lower-order needs
and were therefore motivated by higher-order needs. Therefore, he proposed such ideas as
participative decision-making, responsible and challenging jobs, and good group relations as
approaches that would maximize employee's job motivation. Unfortunately, no evidence confirms
that either set of assumptions is valid or that accepting Theory Y assumptions and altering one's
actions accordingly will lead to more motivated workers.

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