Step 1: Basic premise:
Abraham Maslow proposed that human needs can be arranged in a hierarchy of five levels, and a person is motivated to satisfy the lowest unsatisfied need first; once a need is largely satisfied, it stops being a motivator and the next higher need becomes dominant.
Step 2: The five levels (lowest to highest):
(1) Physiological needs — basic survival needs like food, water, shelter, sleep. (2) Safety/security needs — protection from physical and economic harm, job security. (3) Social/affiliation needs — love, belonging, friendship, acceptance by a group. (4) Esteem needs — self-respect, recognition, status, power. (5) Self-actualisation needs — realising one's full potential, personal growth, creative self-fulfilment.
Step 3: Application to management:
Managers use this theory to design need-specific motivators: fair wages and safe working conditions satisfy the lower needs; team-building and a friendly work culture satisfy social needs; promotions, awards, and titles satisfy esteem needs; and challenging, creative work assignments satisfy self-actualisation needs.
Step 4: Limitation:
The theory assumes a fairly rigid, universal order of needs, whereas in reality different individuals may prioritise needs differently, and needs can operate simultaneously rather than strictly in sequence.
Final Answer:
Maslow's theory states that human needs form a five-level hierarchy (physiological, safety, social, esteem, self-actualisation), and management can motivate employees by identifying and satisfying the specific level of need currently dominant for them.