Human Resource Management: 2.1, 2.2, 2.3, 2.4, 2.6

2.1 Introduction to HRM

Human resource management

Comprises the acquisition, training, motivation and reward of employees and workers within a business.

The role of Human resource management 

• Develop employees’ skills to meet the future needs of the organization

  • Training

  • Offering existing employees new roles and responsibilities within the business 

• Create and keep a loyal workforce

  • Recruit the right employees who fit with the organization’s needs and culture

  • Ensure that employees stay committed to their jobs and find them challenging

• Respond to changing external environments

  • Ensure that during times of external change, the organization continues to meet its objectives as fully as possible.

Human resource plan / workforce plan

A human resource plan assesses the current and future capacity of a business’s workforce and sets out actions necessary to meet the business’s future human resource needs.

Appraisal

As a role of HRM, appraisal is the formal procedure of assessing the performance and effectiveness of employees in relation to their job description.

Dismissal

the role of letting go of workers, usually due to underperformance or misconduct in the workplace.

Recruitment

Refers to the practice of hiring appropriately qualified and suitable workers at the right times to fill job vacancies.

Redundancy

Refers to when a business lets go of workers if/when their jobs are no longer needed or no longer exist

Retention

Refers to the act of retaining/keeping workers at the organization by meeting the needs of employees.

Training and development

refers to the process of improving the competencies, productivity, and skills of employees.

Labour turnover

The percentage of employees leaving in a year as a proportion of the workforce

Workforce

The total number of employees in a business organization at any particular point in time.

Internal factors that influence human resource planning

• Labour turnover 

  • Description

    • The percentage of employees leaving in a year as a proportion of the workforce

  • Effect

    • Higher labour turnover → more recruitment and retention

    • Lower labour turnover → retention 

• Change in company objectives

  • Long-term profits? Reduce wages and make the most effective use ot the workforce

  • Best products? Recruit the most talented and creative individuals

• Productivity of employees

  • Increased productivity could lead to

    • less need to hire more workers

  • And vice versa

• Automation

  • Effect:

    • Could lead to redundancies but may need to hire a machine specialist

• Type of product sold 

  • Effects

    • Businesses with products or services that need highly skilled workers might need to 

      • provide training

    • Businesses whose products are mainly produced by machinery and require less skilled workers will focus on

      • Minimizing labour costs through having the fewest number of employees

• Flexi-time

  • Description

    • A way of working that allows employees to fit their working hours around their individual circumstances

  • Effect

    • Develops employee loyalty and helps maintain a skilled and experienced workforce → reduces the need to plan for recruitment and training 

    • Can make it easier for businesses to meet changes in customers’ needs by accommodating working times easily

External factors that influence human resource planning

• Demographic change

  • Description

    • Demand for goods and services due to high birth rates for example

  • Effect:

    • HR must modify the number of employees to adjust to changes in demand

• Changes in labour mobility

  • Description

    • The ability and willingness of people to move to jobs in different areas or in different occupations

  • Effect: 

    • If there is an increase, it leads to a greater supply of labour for businesses in a specific area. 

    • It may reduce the need to redeploy existing employees to different areas within the business. 

    • It can encourage HR managers to continue to use labour rather than machinery or technology 

    • Reduction of labour mobility will have the opposite effect on all of the above

• Immigration

  • Description

    • Takes place when a person moves to live in a different country.

  • Effect:

    • Increase the labour supply available to any business

    • Can help hold wages down

    • It can encourage HR managers to continue to use labour rather than machinery or technology 

• Economy

  • Description

    • A recession might decrease demand for the product

  • Effect

    • Reducing the income of many employees

• Change in laws

  • Description:

    • E.g. max 40 hour week

  • Effect:

    •  could impact productivity and might lead to recruitment planning needed

• Gig economy

  • Description

    • A labour market in which short term contracts or freelance work are common 

  • Effect: 

    • Allows businesses to control labour costs based on changes in demand to improve price competitiveness

Reasons for resistance to change in the workplace

• Self-interest

  • Resistance because they think they will be worse off

• Preference of the present situation

  • People may not be willing to come out of their comfort zone or may not like change in general

• Misinformation and misunderstandings

  • People may have been given the wrong or insufficient information about the change taking place and what the benefits of it may be, leading to a lack of understanding of why the change is taking place

• Different assessments of the situation

  • Some may resist because they do not think it is the right plan 

Human resource strategies for reducing the impact of change and resistance to change

• Education and communication

• Facilitation and support

• Participation and involvement

• Manipulation and co-option

• Negotiation and bargaining 

• Explicit and implicit coercion

Participation and involvement (Define, Advantages, disadvantages)

• Description

  • Involving employees in the decision making process so they know what is happening and when, and so they can have input in the process

• Advantages

  • Can increase commitment of staff to the change

  • Participation may lead to new insights on how to make the change more effective

• Disadvantages 

  • Managers and employees may disagree on how much involvement is appropriate

  • Participation may lead to delays and obstacles in the process

Education and communication

• Description

  • Managers explain to employees 

    • Why the change is occurring 

    • Why it is needed

    • Why it will work

• Advantage

  • Establishes trust and helps stakeholders see the rationale for change

  • Reduces any unsubstantiated claims and rumours about the proposed change

• Disadvantage

  • Can be slow to bring about because there can be many employees with different perspectives and levels of understanding

Facilitation and support

• Description

  • Occurs when managers ensure employees have the support they need to cope with the change, for example the equipment they need, training or emotional support required to cope

• Advantage

  • Averts potential resistance to change by becoming supportive of staff during difficult times

• Disadvantage

  • Could divert from the main objective of the change taking place

Manipulation and co-option (Define, Advantages, disadvantages)

• Description

  • Identifying the key people likely to resist the change and bring them into the process - their role is usually symbolic and the reason is only to convert the representative’s thinking to see the advantages of change

• Advantages

  • Can win over key influencers and get them to be ambassadors for the change taking place

• Disadvantages

  • Seen as unethical and can backfire if those resisting change discover what the management are really trying to do

Negotiation and bargaining (Define, Advantages, disadvantages)

• Description

  • Occurs when managers make a deal with employees, offering incentives or higher wages for any changes or improvements they expect from employees or expect them to comply with

• Advantages

  • Could lead to possibly better changes than originally intended 

• Disadvantages

  • Employees still do not find this change in their best interest and only agree because they get something else in return - this could imply future disagreements if not compensated similarly again

Explicit and implicit coercion

• Description

  • Forcing the change despite any resistance, and posing threats such as redundancies or pay cuts. These can be stated plainly or implied by saying opposition would have negative consequences

  • Only used as a last resort

• Advantages

  • If the change helps the business, employees may accept it and eventually agree 

• Disadvantages

  • Could lead to bad will in the workplace for some time before an employee accepts the change. It is not the ideal way for HR to deal with resistance.

2.2 Organizational Structure

Types of Organizational charts [A02, A04]

Organizational Structure

Refers to the system of formal relationships between individuals within a firm.

Tall organization / vertical organization.

• This is an organizational structure with many layers in the organizational hierarchy

• The organizational structure is centralized, decisions are passed down the hierarchy from directors and senior managers.

• There is a clear career path throughout the organization

  • Some employees can eventually achieve promotion to top levels

• Narrow span of control

• Can be bureaucratic

Advantages of Tall organization

• Easier to control/manage each team

  • As each team is smaller

• Team morale may be higher

  • Smaller teams may offer better opportunities for building strong working relationships

  • Fulfills social needs in Maslow's hierarchy

• More opportunities for promotion

  • Maslows hierarchy of needs

  • Self-esteem

• Clear hierarchy and structure

  • It is more clear who to report to if more skilled employees/managers are a higher level

  • May fullill Maslow's safety needs

    • Give move clarity to the employees.

    • Less confusion, higher morale.

• Junior employees may receive support from managers

  • May improve performance.

Disadvantages of Tall organization

• Decision-making can be slow

• Long chain of command

  • May lead to ineffective reaction to changes in the extermal environment

  • E.g. Changing customer needs

• Costs may be high

  • Since there will be higher labour costs with more levels in the hierarchy

  • Also Bonuses/benefits.

• Communication can be ineffective

  • A message needs to be passed down multiple levels of management

  • There are likely to be more misunderstandings/misinterpretations

• Leads to slower decision-making and lower efficiency

Flat organization

• A type of organizational structure with fewer levels in the hierarchy.

• Wide span of control

• May result in a more decentralized organization.

• More delegation

  • Managers at all levels have to lead larger numbers of employees

Advantages of Flat organization

• Less Labour costs.

  • less managers required

• Quicker communication and decision making

  • Messages from higher levels have to passed down through as many Layers

• More delegation and responsibility

  • Builds a trusting environment

  • Employee's social needs.

  • Being trusted by their Manager

  • Employees self-actualization needs

  • More responsibility

• Employees may feel more empowered

  • With fewer levels in the hierarchy employees are closer to the top levels

  • Esteem needs - Maslow

Disadvantages of Flat organization

• Managers may be overworked

  • with too many subordinates

  • Due to wide span of control

  • Can increase labour turnover, lower efficiency

• High training costs.

• Employees at lower levels must be able to handle the higher complexity, and amount of tasks delegated to them.

• A large and growing business may have to divide itself into smaller divisions

  • Due to the wider span of control, it is likely that employees at the same levels will be doing vastly different tasks

  • May end up splitting into smaller divisions

• Employees may not feel as if they are part of a large organization

  • Increase labour turnover

Organization by function

• Refers to when a workforce is structured according to business functions, such as marketing or finance.

• Employees may specialize in one function

Advantages of Organization by function

• Employees can operate within their area of expertise

  • Due to specialisation

  • Can generate new and innovative ideas

• Increased motivation and loyalty to one department

  • Employees may feel like they belong (social needs) in a department that only focuses on one function

  • Increased motivation & loyalty.

  • Lower Labour turnover

  • Higher quality output

• Functional areas are given a significant degree of control over finances

  • May consider more possibilities within budget

  • More innovation —> Higher quality output

Disadvantages of Organization by function

• New ideas in one sector of the business may be difficult to coordinate

  • As the business is divided by function

  • Innovations in one sector may go unnoticed in another

• Managers may only consider their function in decision making

  • May limit effectiveness and creativity of decisions

  • Reducing quality of output

Organization by region

Refers to when a business's workforce is different geographical areas

Advantages of Organization by region

• Easier communication

  • All departments in a region have Similar cultures

• Business can better operate in every region

  • All employees there may have local knowledge of market & suppliers

  • All functions can operate to cater to these in every region

  • Higher sales.

Disadvantages of Organization by region

• Possible job duplication

  • With employees having similar tasks at similar levels

  • Only in different regions

  • Which may lead to ineffective functioning as a proportion to Labour costs

• Lack of consistency across areas

  • Different divisions may be having different objectives and Strategies

  • May lead to an inconsistent brand image for the company

Organization by product

Refers to when a business's workforce is structured according to the goods or services sold. Each department focuses on a different product within the business's portfolio

Advantages of Organization by product

• Better understanding of customer needs

  • Each department specializes in one product

  • May lead to higher customer satisfaction & higher sales.

• Quicker decision making.

  • Departments are more focused and smaller

• Higher quality decision-making.

  • Departments are more focused which lead to a deeper level of innovation

  • Higher sales

Disadvantages of Organization by product

• Possible lack of coordination

  • Many departments may generally be market

  • Can lead to inefficiency and diseconomies of scale

Terminology in relation to different types of organizational structures [A02]

Delegation

Refers to when managers entrust and empower employees with the authority to successfully complete a particular task, project, or job role

Advantages of Delegation

• Reduces manager workload.

  • More tasks managed by employees

  • Lower Labour turnover

• Empowers/motivates employees.

  • Social needs (Maslow)

  • Safety needs (Herzberg)

  • Trust

  • Self-actualization needs (Maslow)

  • Herzberg motivator Responsibility, work itself

Disadvantages of Delegation

• High training costs

  • Employees at lower levels must be able to handle the higher complexity and amount of tasks delegated to them.

• Employees may not have the skill level to manage delegated tasks

  • Inefficiency, lower quality output

Bureaucracy

• Refers to the administrative systems within an organization such as the formal policies and procedures of the business

• Formal rules, regulations, procedures of the organization

• Usually prevalent in large and well-established firms with tall structure and centralized decision-making

Advantages of Bureaucracy

• Certainty

  • Employees know exactly how to respond to a situation

  • As bureaucratic procedures have been laid out

Disadvantages of Bureaucracy

• Inefficient

  • Carrying out actions requires many procedures and paperwork

  • Output generation is slower

• Lack of flexibility

  • New and innovative ideas are harder to implement

  • Can lead to slower progress.

  • Less competitive

Levels of hierarchy

• The number of layers of formal authority in an organization.

• It is represented in an organizational chart

• Employees at the same level in the hierarchy have the same authority and similar responsibilities.

• Tall —> Many Levels

• Flat —> Few Levels

Span of control

Refers to the number of workers a line manager directly oversees

Chain of Command

• Refers to the formal path in an organization's structure that information, decisions and responsibility take

• Tall structure - Long chain of command

• Flat Structure - Short chain of command

Delayering

• Occurs when an organization removes one or more layers in its hierarchical structure. The number of layers of management is reduced.

• Structure becomes flatter

• Chain of command becomes shorter

• Span of control becomes wider

Advantages of Delayering

• Reduces costs

  • less manager salaries are paid

• Quicker communication

  • Chain of command becomes shorter

  • Can respond quicker to changing customer

  • Better brand image, higher sales

• Move power to lower levels

  • Esteem needs (Maslow)

  • Self-actualisation needs (Maslow)

  • Herzberg motivator-work itself/ responsibility

  • Higher quality output, Lower Labour turnover

Disadvantages of Delayering

• Redundancy costs

  • Managers must be compensated for being made redundant

• CEO & Managers may feel overworked

  • Wider span of control as the structure is wider.

• Fewer opportunities for promotion,

  • Employees may feel less motivated to perform

  • Lower quality output

  • Lower customer satisfaction

• Security needs of other employees.

  • A security need is that the employee has a secure job

  • As managers are made redundant, employees may feel that their job is at risk as well

  • Lower morale Lower performance

  • Lower quality output

Centralisation

Refers to when key decisions in an organization are made predominantly by a very small group of senior managers (within HQ) at the organisational hierarchy

Advantages of Centralisation

• Quick & Easy decision-making

  • Decisions are few individuals

  • With fewer inputs, less time is taken

  • Can respond quicker to changing customer needs

• Standardised brand image.

  • Key decisions are influenced by the same group of director's

  • Making decisions consistent leads to move brand loyalty and customer satisfaction

Disadvantages of Centralisation

• Employee demotivation.

  • Responsibility not given

  • Self-actualisation needs (Maslow)

  • Herzberg motivator

  • lower quality output due to lower employee performance.

• More pressure of decision-making at the Head office

  • Can lead to lower quality decision making

  • slower customer satisfaction.

• Lack of flexibility/innovation

  • Decisions are made by the same group of people

  • New ideas may not prevail

  • less competitive in the market

Decentralisation

Refers to when decision-making authority in an organization is passed down to middle- or junior-level managers within the business rather than from a central authoritative group

Advantages of Decentralisation

• Decisions can be more tailored to the local culture

  • If the business is organized by region

• Lower-level managers have a better understanding of customer needs.

  • They are closer to the market

  • Decisions made meet customer needs better

  • Better brand image (higher customer satisfaction)

• Lower level managers and employees are empowered motivated

  • Responsibility of decision-making given

  • Herzberg motivator Work itself

  • Self-actualization Maslow

Disadvantages of Decentralisation

• Inconsistent brand image.

  • Decisions can vary from manager to manager

  • Leads to varying output

  • Inconsistent brand image.

  • Lower brand loyalty

• Decisions may not be made with the whole business in mind

  • Middle-and junior-level managers may be more inclined to make favourable decisions for their department, as they have a more narrow view of the company

  • Can lead to inefficient decision-making lower quality products, thus lower customer satisfaction.

Matrix Structure

• Refers to a flexible organizational structure that uses teams of employees with suitable skills and qualifications drawn from different departments or divisions of the business

  • Vertical chain of command with horizontal project or product teams

Advantages of Matrix Structure

• Focuses on tasks necessary for the business's success

  • As it is organized based on tasks

  • And employees from each department with the right skills are involved

  • Can better fulfil customer needs

  • Higher sales.

• Varied and challenging tasks provided for employees

  • Employees will be in different task teams over time with different objectives

  • Herzberg motivator interesting tasks

  • Maslow Self-actualization needs

  • Interesting tasks.

• Encourages organisations to be flexible and responsive to customers' needs

  • Tasks can be shifted and teams organized for new products

  • Can be competitive

Disadvantages of Matrix Structure

• Can create confusion

  • Employees belong to departments as well as project team

  • Security needs employees may unsure how to proceed with a task

  • Herzberg hygiene factors-a sense of order is Packing

  • Demotivating

• Conflicts between project and departmental managers can occur

  • Tasks may clash with the nature of departmental expertise

  • Can lower morale, reduce performance (social needs)

  • Lower quality output, potentially higher labour turnover

• Heavy expenditure on support staff may be required.

Appropriateness of different organisational structures given a change in external factors [A03]

External factors to consider for organizational structures based on the case:

• Changes in technology

  • Technology allows for more access to information

  • May encourage decentralization (managers collect information and Let employees

  • Also encourage the use of Platter organizational structures

  • Social media facilitates fast spread of negative

  • Organizations forced to respond quickly

  • Decentralized flat organisational structure more suitable

• Changes in competition,

  • Organizations must be adaptable and flexible to meet customer needs as fully and quickly as possible.

  • Delegation & decentralization innovation,

  • Flat organizational structure

    • Short chain of command

  • Quicker decision making

• Economic changes

  • Strongly performing economy

    • more consumer spending

  • Organizations may grow rapidly

  • Encourages decentralization as large companies are harder to control by one authority

  • Difficult economic conditions

  • Centralize & reduce costs, standardized procedures

Leadership

Includes the functions of ruling, guiding and inspiring other people within an organization in pursuit of agreed objectives.

The functions of leadership

• Creating a vision for the organization

• Deciding objectives for the organization

• Providing expertise and setting standards for the organization

• Planning every role in determining the structure for the organization

• Becoming a role model for individuals within the organization

Management

Refers to planning, organizing, directing and controlling all or part of a business.

The functions of management

• Planning

• Organizing

• Directing

• Controlling

• Coordinating

Autocratic leadership

Refers to when managers keep control of information and take major decisions on their own without consulting subordinates, then announce the decision to them.

Autocratic leadership communication style

One-way communication downwards from manager to subordinate.

Autocratic leadership decision making style

Objectives are set and tasks allocated. The leader retains control throughout.

Advantages of Autocratic leadership

• Quick decision making

  • Higher productivity

  • Link: Emergency

• Suitable when employees are unskilled

  • more experienced leaders’ directions will lead to higher productivity

• The business’s image can be seen as confident and well-led

  • As the business’s decisions are consistent as they are controlled by the leadership without room for discussion

• Higher quality output

  • Control and close oversight within the organization

• Clear hierarchy

  • Employees do not question decisions made and execute

    • effect: Could potentially increase productivity and thus output and revenue

• Employees have a clear sense of goals and direction

  • Less confusion, effect: more productivity, more output

Disadvantages of Autocratic leadership

• Does not nurture leadership among employees, damaging future competitiveness of the company

• Demotivates workers as their ideas are not valued

  • Relevant especially if employees are highly skilled, talented, motivated and creative

• Could cause poor decision making

  • If taking complex decisions requiring diverse knowledge & skills of the employees

  • Stifles initiative and creativity as employees are not involved in decision making

    • Effect: A poor decision is made as a result; employees may be unhappy

• Business may be seen as uninnovative

  • Since leadership retains control over decisions, this can stop fresh ideas from the staff, which can deteriorate the brand’s innovativeness from the customer’s perspective.

• Employees may become dependent on leaders and not make decisions, making them ineffective when the leader is absent

  • Effect: leadership may also feel overworked and can lead to diseconomies of scale due to resulting inefficiency

Paternalistic leadership

Refers to a style in which managers take decisions they believe are in the best interests of their subordinates.

Paternalistic leadership communication style

Mainly downwards towards subordinates, though feedback will take place.

Paternalistic leadership decision-making style

Leader explains decisions and ensures social and leisure needs are met

Advantages of Paternalistic leadership

• Builds loyalty, morale, and motivation

  • Because employees feel heard and accounted for

    • Lower staff turnover

• Economies of scale

  • Due to better relationships at work as there is feedback involved leading to less conflict or resentment

• The business’s image can be seen as confident and well-led

  • As the business’s decisions are consistent as they are still controlled by the leadership

• Clear hierarchy employees know who is in charge, tasks are done without confusion as a result

  • effect: Could potentially increae productivity and thus output and revenue

• Consistent goals and direction

  • Less confusion, effect: more productivity, more output

• Suitable when employees are unskilled

  • more experienced leaders’ directions will lead to higher productivity

Disadvantages of Paternalistic leadership

• Poor decision making

  • due to lack of participation of employees in decision-making

• Employees may become dependent on leaders and not make decisions

  • Effect: leadership may also feel overworked and can lead to diseconomies of scale due to resulting inefficiency

• Still downward communication which could lead to dissatisfaction

Democratic Leadership

Occurs when a manager or leader shares information with subordinates, is able to delegate authority as well as consult subordinates in the decision-making process.

Democratic leadership communication style

• Extensive

• Two-way communication

• Contributions from subordinates are encouraged

Democratic leadership decision making style

• Participation of subordinates is encouraged and delegation of authority is used.

• Decisions are made collectively depending on what the majority decides

  • Could be through voting

  • Or through informal discussions

Advantages of Democratic Leadership

• Employees have higher morale,

  • Workers feel their opinions and input are valued

    • Lower potential staff turnover

• Can lead to better decision making for the business/better output quality

  • Due to collaborative environment/healthy communication

  • (link) Suitable when employees are fairly skilled OR when morale is low!!!

• Can lead to innovation

  • As ideas are shared in the workplace

    • Can allow for better competitiveness in the long-term

Disadvantages of Democratic Leadership

• Slow decision-making as more members are involved

  • Slower revenue generation

• Less consistent brand image

  • decisions may change depending on opinions of the majority

• Since delegation is given to subordinates, frequent disagreements may occur

  • Diseconomies of scale

Laissez - faire

Takes place when a manager or leader trusts and allows employees the freedom to make their own decisions and delegates authority to them.

Laissez-faire communication style

There is little communication between leadership and subordinates, and all that does occur is between members at the same level in the organization

Laissez-faire decision making style.

Leader evades duties and decisions and delegation of tasks is uncoordinated

Advantages of Laissez-faire

• Nurtures innovation

  • Since employees are trusted to come up with ideas and make decisions

    • Suitable when a team is highly driven, talented and creative

    • Could improve competitiveness of the company in the future

• Higher motivation for staff

  • Increase staff retention

Disadvantages of Laissez-faire

• Lack of focus and direction

  • Goals are set by subordinates and not by management

• Management is not aware of what the employees are doing

  • Lead to more mistrust

• There is no standardized output

  • Could impact the company’s image projected to consumers, possibly leading to lower brand awareness and brand loyalty

Situational leadership

Refers to when a leader adjusts their leadership style to best suit a particular situation or task.

Advantages of Situational leadership

• Suitable to each employee and task

  • Can ideally maximize the success of each project

• Workers may benefit from different leadership styles as they can change their mindset based on more directive activities vs. support from leaders.

Disadvantages of Situational leadership

• Can be confusing for employees, in terms of when they can take part in decision-making and when not.

  • Internal diseconomies of scale due to disagreements and unsatisfactory output

• Leaders have a natural style, so changing style according to different situations may be difficult

  • less effective leadership overall

• Leader may lose credibility with employees

  • Due to inconsistency

  • Leading to lower productivity as there is less sense of authority

Motivation

• Describes the factors that arise, maintain and channel behaviour towards a goal

• The intrinsic desire to do something when workers really want to rather than because they have to.

Demotivation

Exists when an employee has no interest in or enthusiasm for their work.

Signs of Motivation

• Higher productivity

• Higher quality of good or service

• Low labour turnover

• Low absenteeism

• Lower production costs and lower prices, increasing sales – growth & higher profits

• Maintaining of price levels and enjoying consistent profits

Signs of demotivation

• High labour turnover

• Poor quality of goods and more importantly services (e.g. customer service)

• Lower productivity

• Internal diseconomies of scale

  • Higher production costs

  • Fluctuating prices, meaning fluctuating demand, fluctuating profits, decline

• High absenteeism

Absenteeism

Describes a situation in which an employee is absent from work without a good reason

Taylor’s Motivation Theory

• Taylor’s Motivation theory states that people are solely motivated by money

• Theories that payment should be linked to output through a piece rate system

• Encourages close supervision of the workforce

• Division of labour

  • Refers to the breaking down of production into a series of small tasks carried out repetitively by relatively unskilled employees

Maslow’s Hierarchy of needs

• A theory that outlines that employees have successive requirements that can be fulfilled through work.

• A business can give employees the chance of fulfilling the needs at a higher level once a lower one is satisfied.

• Once a lower level is satisfied, more of the same thing do not indicate anymore.

Maslows Hierarchy levels (list)

• 5: Self-actualisation

• 4: Esteem needs

• 3: Social needs

• 2: Security needs

• 1: Physiological needs

Self-actualisation (ways of satisfying)

Providing opportunities to:

• Take new responsibilities

• To develop new skills.

• To contribute to the environment or society

• To fulfil one’s potential completely