Chap 16 Hierarchy of Needs Theory and Applications môn Principles of Management | Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

Question 1: Chap 16
1. Maslow’s Hierarchy of Needs Theory
- Maslow’s Hierarchy of Needs explains that human needs are arranged
in a five-level pyramid, starting from the most basic needs to more advanced needs.
- The 5 Levels of the Hierarchy (from bottom to top)
1. Physiological Needs: Attending to basic survival needs and biological
functions. They are the most fundamental and must be satisfied before higher-level needs
Examples: food, water, air, shelter, and sleep.
2. Safety Needs: Seeking safety and security physical and emotional environment
Examples: personal safety, financial security, health, and protection from danger.
3. Social Needs (Love and Belonging): experiencing love and affection
After safety, people need social connection and relationships.
Examples: friendships, romantic relationships, family, sense of belonging in a
group (e.g., team, community).
4. Esteem Needs: Having positive self-image/self respect and recognition and respect from others
5. Self-Actualization: Realizing one's full potential for personal growth and development.
Examples: personal growth, creativity, pursuing passions, and becoming the best version of yourself. - Contributions:
+ Identified and categorized individual needs.
+ Emphasized importance of needs to motivation. - Weakness:
+ All levels of need are not always present
+ Ordering or importance of needs is not always the same.
+ Cultural differences can impact the ordering and science of needs.
Maslow proposed that individuals strive to satisfy these needs in a sequential
, with higher-level needs becoming motivating factors once lower- needs are met
Practical Example: A Company Redesigning Jobs for Warehouse Staff Situation:
A logistics company notices high turnover and low engagement among
warehouse workers. Management decides to apply Maslow’s theory along
with process and reinforcement theories to improve motivation and job design.
Process Theories: Understanding Employee Behavior
Using Expectancy Theory, the company realizes:
● Employees don’t expect rewards for working harder (low instrumentality),
● They don’t believe extra effort leads to better performance (low expectancy),
● So they don't feel motivated to put in more effort.
Solution: The company creates a clear performance bonus system, offers
regular feedback, and sets achievable goals. Now workers see a direct link
between effort → performance → reward. Reinforcement and Motivation
The company also applies Reinforcement Theory:
● Introduces positive reinforcement: $50 bonus for perfect weekly attendance.
● Uses negative reinforcement: removes undesirable weekend shifts for top performers.
Over time, employees start showing up more regularly and working more
carefully, as good behavior is rewarded and unpleasant outcomes are removed.
Linking to Job Design and Maslow’s Theory
The company redesigns the job using Job Characteristics Model to fulfill higher-level needs: Maslow Level Job Design Example Feature Physiological Fair wages Above-minimum pay Safety Secure Full-time roles with benefits contract Social Teamwork
Workers assigned to stable, supportive teams Esteem
Recognition “Employee of the Month” wall and awards Self-actualization Autonomy
Cross-training for promotion and and growth upskilling
2. Herzberg’s Two-Factor Theory
Motivation-Hygiene Theory, or Dual-Factor Theory, focuses on the
factors that contribute to job satisfaction and dissatisfaction. According to
Herzberg, there are two sets of factors:
- Hygiene Factors (Dissatisfiers) : These factors are related to the work
environment and can lead to job dissatisfaction if they are absent or
inadequate. However, their presence does not necessarily result in increased job satisfaction.
+ Examples: include salary, working conditions, company policies,
interpersonal relationships, and job security
- Motivational Factors (Satisfiers): These factors are intrinsic to the job
itself and can lead to job satisfaction and increased motivation.
Unlike hygiene factors, the absence of motivational factors
doesn't necessarily cause dissatisfaction, but their presence enhances job satisfaction.
+ Examples include achievement, recognition, the work itself,
responsibility, and advancement.
In summary, Herzberg's Two-Factor Theory suggests that job
satisfaction and dissatisfaction are influenced by different sets of factors, and
to truly motivate employees, organizations need to address both hygiene and motivational factors.
Practical Example: Motivating Sales Representatives in a Company Context:
A company wants to increase motivation and performance among its sales representatives.
Process Theories (Employee Behaviors):
The manager uses Expectancy Theory by setting clear sales targets and
ensuring reps believe their effort will lead to good performance (expectancy),
good performance will lead to rewards (instrumentality), and the rewards are
valuable (valence). Sales reps decide to put in more effort because they expect positive outcomes. Reinforcement and Motivation:
The manager applies positive reinforcement by immediately recognizing
top performers with bonuses and public praise. This reward strengthens the
behavior, encouraging reps to maintain or increase their sales efforts.
Linking Herzberg’s Theory, Motivation, and Job Design:
To boost intrinsic motivation (motivators), the manager redesigns the job to
include more responsibility, such as letting sales reps develop their own client
strategies and participate in decision-making. This increases their sense of
achievement and recognition, satisfying Herzberg’s motivators and improving job satisfaction. 3. ERG Theory
The ERG theory is a motivation theory developed by Clayton Alderfer in
1969. It’s a simplified and more flexible version of Maslow’s hierarchy of needs. ERG stands for ● Existence needs ● Relatedness needs ● Growth needs
The Three Types of Needs in ERG Theory 1. Existence Needs
These are the basic material and physiological needs necessary for survival.
● Examples: food, water, shelter, safety, salary, working conditions. 2. Relatedness Needs
These involve relationships with other people and the need for social interaction and acceptance.
● Examples: friendships, family relationships, social connections at work, recognition from others. 3. Growth Needs
These are about personal development, creativity, and achieving one’s full potential.
● Examples: learning new skills, career advancement, personal growth, achievement. How ERG Theory Works
● Unlike Maslow’s theory, which says you have to satisfy needs in order
(starting from basic to higher), ERG theory allows more flexibility.
● A person can be motivated by needs from different categories at the same time.
● If higher-level needs (growth) are not met, people may regress to
lower-level needs (existence or relatedness) to find satisfaction. This is
called the frustration-regression principle. Summary Need Type What it Means Examples Existence
Basic survival and Food, shelter, salary (E) material
Relatedness Social relationships Friendship, family, work (R) relationships Growth (G) Personal Career growth, learning, development achievement Why ERG Theory is Useful
● It reflects real-life motivation better because people often try to satisfy
multiple needs simultaneously.
● It recognizes that when people are frustrated in trying to satisfy
higher-level needs, they may go back to focus more on lower-level needs.
● It’s practical for managers to understand employee motivation at
different levels and tailor motivation strategies accordingly. Practical Example:
Linh works as a customer service representative in a tech company.
● Covering Process Theories (Employee Behaviors):
At first, Linh focuses on her existence needs—earning a stable salary
and having a comfortable workspace. Once these needs are met, she
seeks to fulfill her relatedness needs by building good relationships
with colleagues and receiving recognition from her manager. When
those are satisfied, Linh looks for growth needs by asking for
challenging tasks and training opportunities. If her growth needs are
blocked (e.g., no promotion), she may shift back to focusing more on
relatedness or existence needs, showing the dynamic process of motivation.
● Reinforcement and Its Influence on Motivation:
Linh’s manager praises her publicly when she handles difficult
customers well (positive reinforcement), which encourages her to keep
improving. If she misses targets, the manager offers constructive
feedback but also increases support (negative reinforcement to remove
stress), motivating her to do better. This reinforcement shapes Linh’s
motivation by rewarding positive behaviors and guiding improvements.
● Linking Theory to Practice (Motivation and Job Design):
The company designs Linh’s job to address all ERG needs: it ensures a
fair salary and safe work conditions (existence), promotes team
collaboration and regular recognition (relatedness), and provides
opportunities for skill development and career advancement (growth).
This well-rounded job design keeps Linh motivated and productive.
Question 2: Teams and Teamwork (Chapter 17)
- A team is a small group of people with complementary skills who
interact and work with one another to achieve shared goals.
- Teamwork is the process of people working together to accomplish these goals.
Study and explain textbook figures: 17.2, 17.4, 17.5, 17.6
Understand team structure, dynamics, and effectiveness
Figure 17.2 – An Open-Systems Model of Team Effectiveness
This figure presents a model showing how team effectiveness is determined by both inputs and processes.
● Team Effectiveness Equation:
Team Effectiveness = Quality of Inputs × (Process Gains – Process Losses) ● Inputs include:
○ Membership Characteristics: Skills, values, personalities, diversity.
○ Resources & Setting: Tools, work environment, rewards, support systems.
○ Nature of the Task: Clarity, complexity, feedback.
○ Team Size: Affects interaction and decision-making dynamics.
● Processes involve how members work together:
○ Norms, cohesion, roles decision-making , , communication, and conflict resolution.
This model emphasizes that strong inputs alone are not enough—teams
must also work together effectively.
Figure 17.4 - How Cohesiveness and Norms Influence Team Performance
This figure shows the relationship between team cohesiveness and
performance norms, with four possible outcomes: Performance High Cohesiveness Low Norms Cohesiveness High Best-case: Strong team, high Moderate performance performance Low
Worst-case: Strong unity around poor Weak performance performance
Takeaway: For best results, teams need high cohesiveness and positive
performance norms. Cohesiveness without strong norms can reinforce poor habits.
Figure 17.5 – Distributed Leadership Helps Teams Meet Task and Maintenance Needs
This figure categorizes team member behaviors into three types:
1. Task Activities: Actions that contribute to task completion (e.g.,
initiating, sharing info, elaborating).
2. Maintenance Activities: Actions that support team dynamics and
morale (e.g., encouraging, harmonizing, gatekeeping).
3. Disruptive Activities: Behaviors that hurt team effectiveness (e.g.,
being aggressive, withdrawing, seeking recognition).
● Distributed Leadership: Everyone on the team should engage in task
and maintenance roles, not just the formal leader.
Figure 17.6 – Interaction Patterns and Communication Networks in Teams
Describes three communication networks:
1. Decentralized (All-channel):
○ Everyone communicates with everyone. ○ Best for complex tasks.
○ Encourages participation and collaboration. 2. Centralized (Wheel):
○ Communication flows through a central leader. ○ Best for simple tasks.
○ Efficient but can limit creativity. 3. Restricted (Subgroups):
○ Subgroups form and limit communication.
○ Often arises from conflict.
○ Slows down task completion and can lead to dysfunction.
Team Structure, Dynamics, and Effectiveness
● Structure: Defined by membership, task type, size, and communication methods.
● Dynamics: Emergent properties like norms, roles, cohesion, and conflict handling.
● Effectiveness: Measured by task success, member satisfaction, and
ability to continue functioning as a team. Question 3:
Step-by-Step Guide for Analyzing a Company’s Organizational Structure
Step 1: Read the Case Carefully
● Highlight who the employees report to.
● Underline any mention of departments, teams, regions, customers, or products.
● Mark any clues about how the work is organized (e.g., team-based,
project-based, regional offices, external partnerships).
Step 2: Identify Key Organizational Features
Ask yourself the following questions:
1. Are people grouped by skills or functions? (e.g., HR, Finance, IT, Marketing)
2. Are people grouped by products, regions, or customer types?
3. Do employees report to more than one manager?
4. Are there cross-functional teams working temporarily on projects?
5. Is the organization small at the core and relies on outsourcing or external partners?
6. Are there signs of flexibility, empowerment, or informal networks?
Write short notes under each point.
Step 3: Match to One of the Structures
Use your notes to match the structure to one of the following types: Structure Features / Clues Type Functional
Grouped by department or function (e.g., finance,
marketing); one VP per function. Divisional
Grouped by product, region, customer, or process. Each division has full functions. Matrix
Employees report to two bosses: one functional, one product/project. Cross-functi
Teams formed temporarily from different departments to onal work on projects.
Network-bas Core staff is small; most work is outsourced; common in ed tech firms. Step 4: Justify Your Answer
Use case evidence and chapter theory:
● Write 2–3 sentences explaining why the structure fits one of the types.
● Include keywords from the textbook:
○ “Two-boss system” → Matrix
○ “Process or customer focused” → Divisional
○ “Outsourcing or strategic alliances” → Network
○ “Functional chimneys” or “expertise grouping” → Functional
○ “Cross-functional team” or “temporary project” →
Cross-functional or Team-based
Step 5: (Optional) Draw a Simple Diagram
● A small chart showing reporting lines or departments can help you
visualize and confirm the structure. ● Example:
○ For Matrix, show an employee reporting to both a Project
Manager and a Department Manager. Step 6: Double Check Ask yourself:
● Does my answer clearly match only structure type? one
● Did I use specific words and examples from the case?
● Did I include terms from Chapter 11?
Example Structure Recognition from Case Clues If you see in the case:
● “Marketing, Finance, Production” under a CEO → Likely Functional
● “Europe Division, Asia Division” each with full teams → Likely Divisional (Geographical)
● “Team member reports to product manager and engineering supervisor” → Matrix
● “Temporary team with members from Sales and IT” → Cross-functional
● “Core firm designs, but manufacturing and support outsourced” → Network-based