Maslow’s hierarchy of needs is relevant to organizational theory because both are concerned with human motivation. Understanding what people need—and how people’s needs differ—is an important part of effective management. For example, some people work primarily for money, but they also like to go to work because they enjoy feeling respected by others and appreciated for their good work.
Maslow’s hierarchy of needs suggests that if a lower need is not met, then the higher ones will be ignored. For example, if employees lack job security and are worried that they will be fired, they will be far more concerned about their financial well-being and meeting lower needs such as paying rent, bills, etc. However, if employees receive adequate financial compensation and have job security, meaningful group relationships and praise for good work may be more important motivators.