At present, apart from the basic pay and allowances as a part of compe

1.	At present, apart from the basic pay and allowances as a part of compensation, the employees and employers contribute 12% of basic wages each towards Employees Provident Fund scheme and Employees Pension Fund scheme. A proposal to reduce the contribution by employers and employees to 10% of basic pay and dearness allowance was listed on the agenda for a recent meeting of Employees Provident Fund Organisation held. The stakeholders expressed their reservations about it and they feel that it should be continued at 12%. Explain any two needs as suggested by Maslow’s Need Hierarchy Theory, which will not be satisfied by the incentives discussed above.
Answer» Incentive of basic pay and allowances satisfy the basic needs or physiological needs. Retirement benefits satisfy the safety needs or security needs. Maslow has identified three other needs besides the above-mentioned two needs. Following are the needs: 1. Social needs – Social needs are also known as affiliation or belonging needs. Social needs include friendship, love, affection, attention and social acceptance. 2. Esteem needs – Esteem needs are also known as egoneeds. Esteem needs include factors such as self-respect, autonomy status, attention and recognition. 3. Self actualisation needs – Self actualisation need is the highest level of need in the hierarchy of needs. Self actualisation need is the need “to be what one is capable of becoming” and includes need for optimal developmental of potential abilities, knowledge and skills, need to be creative and achieve self-fulfilment.

At present, apart from the basic pay and allowances as a part of compensation, the employees and employers contribute 12% of basic wages each towards Employees Provident Fund scheme and Employees Pension Fund scheme. A proposal to reduce the contribution by employers and employees to 10% of basic pay and dearness allowance was listed on the agenda for a recent meeting of Employees Provident Fund Organisation held. The stakeholders expressed their reservations about it and they feel that it should be continued at 12%. Explain any two needs as suggested by Maslow’s Need Hierarchy Theory, which will not be satisfied by the incentives discussed above.

Answer»

Incentive of basic pay and allowances satisfy the basic needs or physiological needs. Retirement benefits satisfy the safety needs or security needs. Maslow has identified three other needs besides the above-mentioned two needs.

Following are the needs:

1. Social needs – Social needs are also known as affiliation or belonging needs. Social needs include friendship, love, affection, attention and social acceptance.

2. Esteem needs – Esteem needs are also known as egoneeds. Esteem needs include factors such as self-respect, autonomy status, attention and recognition.

3. Self actualisation needs – Self actualisation need is the highest level of need in the hierarchy of needs. Self actualisation need is the need “to be what one is capable of becoming” and includes need for optimal developmental of potential abilities, knowledge and skills, need to be creative and achieve self-fulfilment.

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