8/4/2019 Maslows Need Hierarchy Theory

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Maslows Need Hierarchy Theory

and its implications

According to Abraham maslows, an American Psychologist a

persons behavior is shaped by many needs. These needs are

arranged in order of priority. An individual first tries to fulfill hislower level needs. once they are satisfied, he moves towards the

satisfaction of higher order needs. The hierarchy lower to higher

order of priority.

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A. Physiological needs

This refer to the needs for food, water, oxygen,rest, sleep etc. They exert tremendous influence on

human behavior. Enterprise also being a man needs tomeet his physiological needs for survival. Thesephysiological drives are directly concerned with thebiological maintainence of the organism. Thesociophysical environment of our country provides forthe satisfaction of primary needs for most persons.Hence he is motivated to work in the enterprise to haveeconomic rewards to meet the basic needs . Like anyother individual, an entrepreneur also sufficient

resource to meet the physiological needs of himself andhis family dependents, so he undertake business ventureon small scale and seeks economic rewards from hisenterprise in form of profit.

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B. safety and security Needs

These needs find expression in such desire as

economic security and protection from physical dangers likesickness etc. The primary motive here is to ensure a reasonable

degree of country, order, structure and predictability in ones

environment. Meeting these needs require more money and

hence entrepreneur is promoted to work more in his enterprise.Like physiological needs, these become in active, once they are

satisfied. Such factor create tension in the mind of entrepreneur.

In case of serious law and order problem, an entrepreneur either

closes his enterprise for the day and even considers shifting it to

a safer place. Also he might enter into agreement or contractwith purchase of raw material or other such critical issues to face

the uncertainty of futures.

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C.Social Needs

Man is a social animal. These needs, refer tobelongingness. An individual motivated on this level

longs for affectionate relationship with other namely for aplace in his family and reference groups. These means theneed to be accepted by other , need to be belong, need toreceive attention from others. an entrepreneur satisfiesthese needs by interacting with other entrepreneurs, withemployees, etc

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D. Ego or Esteem or status needs

These needs refer to self esteem and self respect.

The former include desire for perfection, confidence,

personal strength adequacy, achievement, independenceand freedom. The later include prestige, recognition,acceptance, attention, status, reputation and appreciation.In case of entrepreneurs, the ownership and self control

over enterprise satisfies their esteem needs by providingthem status, respect, reputation and independence. Desireto be an independent is another ego need. Anentrepreneur established an enterprise to satisfy most of

his ego needs. Ownership and control of successfulenterprise provides him status, personal reputation andsense of independence and achievement.

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E. Self Actualization Need

This refers to self fulfillment. Maslow characterised self

actualisation as the desire to become everything that one is capableof becoming. The person at this level tries to exploit his talents,

capacities and potentials to the maximum. This needs include the

desire for expressing and proving oneself. This are strongest

motivating force an entrepreneur. The establishment and successful

operation of an enterprise providers him opportunities for selfexpression, achievement and growth. Becomes pioneers person for

specific industry. This theory is based on following principles

a) Principle of deficiency

The derived needs motivates behavior or to undertake specificactivity in specific way.

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b) Principe of Progression

Higher needs become activated only when the lower order needs are

satisfied. In this theory needs are arranged in a lowest to the

highest hierarchy. The 2nd need does not dominate unless the first is

reasonably satisfied, and the 3rd need does not dominate untill 1st

two have been reasonable satisfied. This process goes on till the last

need. Because human needs are unlimited. For entrepreneur it is

mainly social, esteem and self actualizing needs which motivate

them to work more and more for satisfying them.