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CHAPTER 8: MOTIVATION AND EMPOWERMENT 229
management approaches often appeal to an individual’s lower, basic needs and
rely on extrinsic rewards and punishments—carrot-and-stick methods—to mo-
tivate subordinates to behave in desired ways. These approaches are effective,
but they are based on controlling the behavior of people by manipulating their
decisions about how to act. The higher needs of people may be unmet in favor of
utilizing their labor in exchange for external rewards. Under conventional man-
agement, people perform adequately to receive the “carrot,” or avoid the “stick,”
because they will not necessarily derive intrinsic satisfaction from their work.
The leadership approach strives to motivate people by providing them with
the opportunity to satisfy higher needs and become intrinsically rewarded. For
example, employees in companies that are infused with a social mission, and that

find ways to enrich the lives of others, are typically more highly motivated be-
cause of the intrinsic rewards they get from helping other people. Leaders at any
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company can enable people to find meaning in their work. At FedEx, for example,
many employees take pride in getting people the items they need on time, whether
it be a work report that is due, a passport for a holiday trip to Jamaica, or an
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emergency order of medical supplies. Remember, however, that the source of
an intrinsic reward is internal to the follower. Thus, what is intrinsically rewarding
to one individual may not be so to another. One way in which leaders try to enable
all followers to achieve intrinsic rewards is by giving them more control over
their own work and the power to affect outcomes. When leaders empower others,
allowing them the freedom to determine their own actions, subordinates reward
themselves intrinsically for good performance. They may become creative, inno-
vative, and develop a greater commitment to their objectives. Thus motivated,
they often achieve their best possible performance.
Ideally, work behaviors should satisfy both lower and higher needs, as well
as serve the mission of the organization. Unfortunately, this is often not the
case. The leader’s motivational role, then, is to create a situation that integrates
the needs of people—especially higher needs—and the fundamental objectives
of the organization.

Needs-Based Theories of Motivation

Needs-based theories emphasize the needs that motivate people. At any point in
time, people have basic needs such as those for monetary reward or achievement.
These needs are the source of an internal drive that motivates behavior to fulfi ll
the needs. An individual’s needs are like a hidden catalog of the things he or she
wants and will work to get. To the extent that leaders understand worker needs,
they can design the reward system to reinforce employees for directing energies
and priorities toward attainment of shared goals.

Hierarchy of Needs Theory
Probably the most famous needs-based theory is the one developed by Abraham
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Maslow. Maslow’s hierarchy of needs theory proposes that humans are motivated Hierarchy of needs theory
Hierarchy of needs theory
Maslow’s theory proposes
by multiple needs and those needs exist in a hierarchical order, as illustrated in Maslow’s theory proposes
that humans are motivated by
that humans are motivated by

Exhibit 8.4, wherein the higher needs cannot be satisfied until the lower needs are multiple needs and those needs
multiple needs and those needs
met. Maslow identifi ed fi ve general levels of motivating needs. exist in a hierarchical order
exist in a hierarchical order
• Physiological The most basic human physiological needs include food,
water, and oxygen. In the organizational setting, these are reflected in the
needs for adequate heat, air, and base salary to ensure survival.