- Maslow’s theory of hierarchy of needs believes that each individual has some needs arranged in hierarchical order. Only when a lower need is satisfied, does the higher need come into picture.

- Thus the incentives offered to the workers at each level have to be different.

These needs are classified as grouped as below:

Level 1 – Basic needs – Food, clothes, shelter

Level 2 – Safety needs – Security and protection

Level 3 – Social needs

Level 4 – Esteem needs

Level 5 – Self actualization