Categories: Human Resource

Determine Compensation Components Using Maslow’s Hierarchy of Needs Model

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p align&equals;"justify">Maslow’s Hierarchy of needs explains the stages in a person’s life&comma; experienced at different times emotionally&period; If we analyze Maslow’s hierarchy in terms of compensation structure then the lowest level which covers physiological needs includes the basic rights of employees to work in a clean and healthy work environment where they have access to basic necessities of life like water&comma; clean air to breathe etc&period; benefits other than salary do not fall in this category because they enable employees to achieve higher level of satisfaction then just fulfilling their physiological needs &lpar;Miller-Merrell&comma; 2013&rpar;&period; This need will be of utmost importance to 750 employees who are non management employees&period; they are paid less and for them meeting both ends matters&period;<&sol;p>&NewLine;<p align&equals;"justify">On the second level come safety needs where stable work environment comes with no fear of being laid off unfairly&period; Safe work environment also falls in this level where employees are given life insurance policies if their tasks involve some life endangering job&period; All benefits and conditions to ensure safe work environment are a part of fulfilling Maslow’s second level of need model like health care benefits&comma; pension fund&comma; retirement benefits&comma; provident fund etc &lpar;Tanner&rpar;&period; <&sol;p>&NewLine;<p align&equals;"justify">Then a person moves higher up the ladder and his sense of belongingness come into play&period; In this stage the relationships with co workers&comma; peers&comma; boss and subordinates are considered&period; A person looks for love and respect in his workplace relationships and a company could help foster this through team building exercises and trainings or designing tasks in a way that employees have to work in groups in order to achieve the goal&period; People may find out the better salary structure and benefits somewhere else&comma; but if they bond with their co workers well then they might turn into loyal employees&period; Miller’s sense of belonging maybe was too high that’s why he hired his relatives to surround himself with his loved ones even at his workplace&period;<&sol;p>&NewLine;<p align&equals;"justify">&lbrack;large&rsqb;Then comes esteem needs in which a person needs to be appreciated for his&sol;her efforts and recognized for their contribution in organization&period; This recognition can be in the form of monetary benefits like promotion and bonus or non-monetary terms like employee of the month programs&period; An employee who is at this stage of Maslow’s hierarchy seeks respect from his organization for his contributions&period; Miller clearly did not arrive at this level since he did not improve the production levels since three years and consistently performed bad&period;&nbsp&semi; <&sol;p>&NewLine;<p align&equals;"justify">The final and last stage of Maslow’s hierarchy is self actualization and a person only reaches this stage when he&sol;she has passed through all the lower levels&period; This means that an employee at this stage will be earning a good compensation from the company with surety of his employment to continue in future&period; He will also be receiving some health and insurance benefits and he would have friends in his workplace that would make his work enjoyable for him&period; He must be feeling appreciated for his efforts and now he is at a stage where he works because he loves his job and want to accomplish things for his own sake&period; He does not seek approval from anybody nor is his work an obligation for him&period; This stage is achieved only when the basic needs are met and it is the responsibility of HR to facilitate employees in a way that they feel self actualized&period; <&sol;p>&NewLine;<h2>Bibliography<&sol;h2>&NewLine;<p> Gunderson&comma; M&period; &lpar;2001&rpar;&period; Economics of personnel and human resource management&period; Human Resource Management Review &comma; pp&period; 431 – 452&period;<br &sol;>&NewLine;Miller-Merrell&comma; J&period; &lpar;2013&comma; May 01&rpar;&period; How Does Your Compensation Model Fit into Maslow’s Hierarchy of Needs&quest; Retrieved June 11&comma; 2016&comma; from Payscale&colon; <a href&equals;"http&colon;&sol;&sol;www&period;payscale&period;com&sol;compensation-today&sol;2013&sol;05&sol;how-does-your-compensation-fit-into-maslow-hierarchy-of-needs">http&colon;&sol;&sol;www&period;payscale&period;com&sol;compensation-today&sol;2013&sol;05&sol;how-does-your-compensation-fit-into-maslow-hierarchy-of-needs<&sol;a><br &sol;>&NewLine;Rasim&comma; T&period; S&period; &lpar;2008&rpar;&period; The Role of Psychology in Human Resources Management&period; Europe&&num;8217&semi;s Journal of Psychology &period;<br &sol;>&NewLine;Tanner&comma; R&period; &lpar;n&period;d&period;&rpar;&period; Motivation – Applying Maslow’s Hierarchy of Needs Theory&period; Retrieved June 11&comma; 2016&comma; from Management is a Journey&colon; <a href&equals;"https&colon;&sol;&sol;managementisajourney&period;com&sol;motivation-applying-maslows-hierarchy-of-needs-theory&sol;">https&colon;&sol;&sol;managementisajourney&period;com&sol;motivation-applying-maslows-hierarchy-of-needs-theory&sol;<&sol;a><&sol;p>&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;

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