'For some employees, money is the main motivator - VCE - SSCE Business Management - Question 3 - 2023 - Paper 1

Both Maslow’s Hierarchy of Needs and Herzberg’s Two-Factor Theory provide frameworks for understanding what motivates employees, albeit in different ways.

Similarities

• Foundation on Human Needs: Both theories emphasize the importance of fulfilling human needs to motivate employees effectively. Maslow outlines a progression from basic physiological needs to self-actualization, while Herzberg categorizes motivators and hygiene factors.
• Role in Job Satisfaction: Each theory recognizes that meeting certain needs or factors is essential to achieving job satisfaction and motivation.

Differences

• Levels of Needs vs. Factors: Maslow’s theory proposes a hierarchy of needs, which must be fulfilled in order. In contrast, Herzberg focuses on two distinct categories: motivators (which lead to job satisfaction) and hygiene factors (which, if inadequate, can lead to dissatisfaction).
• Underlying Assumptions: Maslow suggests that individuals must satisfy lower-level needs before they can focus on higher-level needs. Herzberg argues that the presence of motivation factors directly influences job satisfaction, while the absence of hygiene factors leads to dissatisfaction, regardless of whether higher-level needs are being met.

In reference to the statement, for many employees, financial incentives (linked to Maslow’s physiological needs) may be crucial, while for others, recognition and accomplishment (as emphasized in Herzberg’s motivators) might play a more central role.