Maslow’s Hierarchy of Needs:

1. Physiological Needs (Basic Needs):
   These are the needs for food, shelter, clothing, and everything else that is required to stay alive. These needs can be satisfied by money.
2. Safety/Security Needs:
   Safety needs are the needs for security in work. Individuals want to feel safe against the risk of unemployment and want protection against the consequences of illness or having to retire. These needs can be satisfied by employment legislation and the employer’s arrangements for a pension scheme and for the treatment of employees affected by illness or injury.
3. Social Needs:
   Social needs are the needs to interact with other people and to be part of a group. At work, social needs can be met by working with other people. However, the way in which work is organized has an important effect on whether the social needs of employees are fully met.
4. Esteem Needs (Ego Needs):
   Esteem needs are the needs for the esteem of other people and to feel good about one’s own value or importance. Esteem needs can be met by promotion and by the status of the job. However, promotion only offers short-term esteem. In the longer term, individuals get esteem from their work by having some say in how their work is organized.
5. Self-fulfillment Needs (Self-actualization Needs):
   These are the needs to achieve something worthwhile in life. This need is never fully satisfied. An individual at this level in the hierarchy needs continuing success and achievements.

Significance:
The significance of Maslow’s ideas is that they suggest an approach that management should take to improving the motivation of the employees. Management must make sure that lower-level needs are satisfied before they try to motivate employees with initiatives aimed at the satisfaction of higher-level needs.