Motivation is a very important component within the business world because it plays a vital role of the psychological well being of employees. With motivation stemming from rewards, whether it being from intrinsic or extrinsic methods, contribute to psychological internal needs. Maslow's hierarchy of needs is a theory that places basic human needs into five categories, from a physiological and psychological standpoint (Campbell & Quick, 2003). Motivation within the work place would fall into the esteem category of Maslow's hierarchy, because an employee must experience a sense of belonging before he/she will ever feel like a part of the team. Since Maslow's hierarchy places basic physiological needs on the bottom, it is essential for other needs to be met in order to gravitate towards the top of the pyramid. It is important to note that esteem is the characteristic that is placed on the fourth level, with only self-actualization being above.
Taking into consideration McClelland's motivational theory, people who need intrinsic motivation would be classified in the "need for affiliation" group. People who fits into this category like to give compliments and also receive them. These people require a higher need recognition the most and thrive on it (Campbell, Quick, 2003 p. 159). This goes without saying that individuals like to be recognized for their individual achievements and in some situations group rewards may damage the moral of the business.
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