Question

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 Organization 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 1

The following needs given as per Maslow’s Need Hierarchy Theory will not be satisfied by the two incentives- Basic pay and allowances (satisfies basic needs) & Retirement Benefits (satisfy safety and security needs) discussed above:

a. Affiliation /Belonging Needs: These needs refer to affection, sense of belongingness, acceptance and friendship. 

b. Esteem Needs: These include factors such as self-respect, autonomy status, recognition and attention. 

c. Self Actualization Needs: It is the highest level of need in the hierarchy. It refers to the drive to become what one is capable of becoming.