Abraham Maslow proposed his psychology theory, the Hierarchy of Needs, in 1943, and it is frequently used in the business world in a number of ways, particularly in functions that deal with people. For example, human resources uses the ideas in developing employment plans, marketing uses the ideas in advertising and promotion, and sales uses them to uncover a customer’s motivation for buying.
To gain a better understanding of how Maslow’s concepts apply in today’s business environment, it’s important to first understand what the Hierarchy of Needs is. The concept is most often demonstrated with a pyramid that illustrates each need and its relative importance. The base of the pyramid consists of the most basic needs, while more complex human needs make up the top of the structure.
Basic physical requirements such as water, food, sleep and warmth are at the bottom of the pyramid, and once those needs are satisfied, an individual can move to the next level of need which is safety and security. As people satisfy each level of need, increasingly more complex needs are introduced which are also more social and psychological. For example, we move from the need for friendship, intimacy and love to the need for self-esteem and having feelings of accomplishment being the primary needs to be addressed.
Categorizing a Human’s Needs
There are five levels on the pyramid. The base is physiological needs which we’ve already discussed. But it’s important to remember that unless these needs are met, nothing else matters. Safety and Security needs are the next level of the pyramid, and although they are important for survival, they aren’t nearly as crucial as physiological needs. Some examples of safety and security needs include shelter from the environment, safe neighbourhoods and a steady means of income.
The third level in the pyramid is social needs or the need to belong and be liked or loved. The social level addresses the need for companionship and acceptance. Next up on the pyramid are the esteem needs. Once the first three types of needs are satisfied, the need for esteem is increasingly vital. This need includes anything that creates personal worth, social recognition, self-esteem and accomplishment.
Finally, at the top of the pyramid are the self-actualizing needs. People who are self-actualizing are concerned with personal growth and are less concerned with the opinions of others.
Maslow classified the five levels of needs into two categories.
- Deficiency needs that include the physiological, security, social and esteem needs
- Growth needs are different in that they don’t stem from a lack of something. Instead they stem from a desire to grow as a person
Impact on Management & Business
Maslow’s theory has some important considerations for management, including insights into the best way to motivate employees, vendors, clients and customers. For example, managers can use Maslow’s Hierarchy of Needs to find and create ways to motivate employees by carefully considering how needs play into job design, compensation, management style and so forth.
For example, managers can harness the power of physiological needs by providing wages that are sufficient for employees to purchase their basic needs. Safety needs can be addressed by providing job security, retirement benefits and a safe working environment. Social needs are addressed by developing a team atmosphere, making sure that employees know that they are a part of something bigger and they can count on their team members just as their team members should be able to count on them.
From a product development, sales and marketing perspective, Maslow’s Hierarchy of Needs is just as legitimate. Companies can develop products to help satisfy particular needs, and they can also focus on particular needs as a way to market and sell something. For example, a clothing manufacturer can focus on physiological needs such as the need to be protected from the environment and to be warm. And they can also focus on esteem and self-actualization needs by producing garments that improve a person’s self-esteem or self-perception and give them the confidence to pursue their self-actualization needs.
I hope you have found this useful.
Happy Selling
James Randle – Marketing Strategist – Helping you successfully grow your business through powerful marketing techniques – Sales & Marketing Coach/Mentor
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