The hierarchy of needs theory proposes that employees are motivated by five levels of needs. Abraham Maslow developed this theory in the 1940s. People have five levels of needs, listed here in hierarchical order from lowest to highest. Physiological needs. These are people’s basic needs for air, water, food, shelter, sex, and relief from or avoidance of pain.

Safety needs. Once they satisfy their physiological needs, people are concerned with safety and security. Social needs. After establishing safety, people look for love, friendship, acceptance, and affection. After they meet their social needs, people focus on acquiring status, self-respect, recognition for accomplishments, and a feeling of self-confidence and prestige. The highest-level need is to develop one’s full potential. To do so, people seek growth, achievement, and advancement.

Today, a manager’s critical task is to show sensitivity to employees’ needs. Managers should meet employees’ lower-level needs first so that those needs and then focus on meeting higher-level needs. Although the hierarchy of needs is not supported by research, businesses do attempt to meet them.