Analysis of McDonald's Operations: Issues, Maslow's Theory, and Recommendations

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In this document we will discuss about Analysis of McDonald's Operations and below are the summary points of this document:- The report analyzes a case study on McDonald's operations and the issues faced by the organization. The analysis is based on Maslow's Hierarchy of needs theory to understand the situation and training factors. Recommendations are provided for the future operations of McDonald's based on the findings.  

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Running head: HUMAN RESOURCE MANAGEMENT
HUMAN RESOURCE MANAGEMENT
Name of the Student
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Author Note

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Table of Contents
Executive Summary.......................................................................................................2
Introduction....................................................................................................................3
About the company....................................................................................................3
Problem that has occurred in McDonalds..................................................................4
Explanation and discussion on Maslow’s Theory..........................................................5
To compare and contrast................................................................................................9
Conclusion....................................................................................................................13
Recommendations....................................................................................................13
Bibliography.................................................................................................................14
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2HUMAN RESOURCE MANAGEMENT
Executive Summary
The report is based on the analysis of a case study based on the operations of McDonalds.
The issues that have been faced by the organization related to aggressive increase in the menu
items have been analysed in the report in detail. The Maslow’s Hierarchy of needs based
model has been considered as the theory that has been considered in order to analyse the
situation that has taken place in the organization. The issues and training based factors that
have been faced by the organization have been analysed with respect to Maslow’s Hierarchy
based model in a detailed manner. Recommendations have been provided based on the future
operations of the organization.
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3HUMAN RESOURCE MANAGEMENT
Introduction
As opined by Lee and Hanna, the analysis that will be made in the report is based on
the case study related to improvement of customer satisfaction levels by McDonalds. The
effects on economic downturn on the operations of McDonalds is a major part of the case
study. Different factors that are related to the ways by which McDonalds operates is
considered in the case study. The report will help in analysing the issues that have occurred in
the organization and the responses that have been provided in the industry as well. The
mistakes that have been made by McDonalds have also been discussed in the case study 1.
About the company
McDonalds is a restaurant that was established in the year 1940 and currently operates
in the fast food chain based industry. The restaurant chain was founded by Maurice
McDonald and Richard Maurice in San Bernardino, California. McDonalds had started its
business operations as a hamburger based stand and further the operations had been
diversified into franchises that operate huge number of stores in different parts of the world 2.
McDonalds has developed its position as the largest fast food chain based on the
revenues that have been earned in more than 100 countries of the world. The organization is
mainly known in the fast food industry for different products like, hamburgers, French fries
and cheeseburgers. McDonalds currently operates more than 36,000 stores and employs
greater than 375,000 people in different stores 3.
1 Lee, Jae Min, and Sherman D. Hanna. "Savings goals and saving behavior from a perspective of
Maslow's hierarchy of needs." Journal of Financial Counseling and Planning26.2 (2015): 129-147.
2 Mcdonalds.com (2019). McDonald's: Burgers, Fries & More. Quality Ingredients.. [online]
Mcdonalds.com. Available at: https://www.mcdonalds.com/us/en-us.html [Accessed 7 Mar. 2019].
3 Mcdonalds.com (2019). McDonald's: Burgers, Fries & More. Quality Ingredients.. [online]
Mcdonalds.com. Available at: https://www.mcdonalds.com/us/en-us.html [Accessed 7 Mar. 2019].

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Problem that has occurred in McDonalds
As discussed by Neubauer and Martskvishvili, the major issue faced by McDonalds
related to the expansion of the items in the menu has been highlighted in the case study in
detail. The complaints that have been received from the customers based on service levels of
the restaurants is considered to be a major issue. The services that are offered by the
organization have been compromised in a huge manner by the introduction of new items in
the menu. The ratings that have been provided by the customers are also not satisfactory in
nature 4.
According to Fallatah and Syed, the lack of proper employees in different positions in
the organization is also a major issue that is faced by McDonalds. The employees have also
not been provided with effective training based on the ways by which the customers can be
satisfied. The service based challenges that are faced by McDonalds are considered to be
important factors that have been considered in the case study in detail 5.
As argued by Soni and Soni, the aggressive levels of expansion in the menu has led to
the lack of proper services that have been provided by the employees to the customers. The
customers have not been quite happy with the experience that has been provided to them in
the stores that are located in different countries. The organization has also faced major issues
based in wages that have been provided to the employees. The issues have been able to affect
the levels of revenues that have been gained by McDonalds in the fast food based industry 6.
4 Neubauer, Aljoscha C., and Khatuna Martskvishvili. "Creativity and intelligence: A link to different
levels of human needs hierarchy?." Heliyon 4.5 (2018): e00623.
5 Fallatah, Rodwan Hashim Mohammed, and Jawad Syed. "A Critical Review of Maslow’s Hierarchy
of Needs." Employee Motivation in Saudi Arabia. Palgrave Macmillan, Cham, 2018. 19-59.
6 Soni, Bina, and Ramesh Soni. "Enhancing Maslow's hierarchy of needs for effective leadership."
Competition Forum. Vol. 14. No. 2. American Society for Competitiveness, 2016.
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5HUMAN RESOURCE MANAGEMENT
Explanation and discussion on Maslow’s Theory
As discussed by Venter, Maslow’s hierarchy of needs is mainly a theory that has been
developed by Abraham Maslow in the year 1943. The theory is based on the different stages
related to the growth that takes place in the needs of humans. The needs based theory also
helps in providing the understanding based on the ways by which motivation can be provided
to humans in an effective manner. Different terms that are used by Maslow as a part of the
theory include, “physiological”, “safety”, “belonging and love”, “self-esteem”, “social needs”
and “self-actualization” 7.
As argued by Cherry, the various levels of needs have to be fulfilled by the
organization in order to provide the highest levels of motivation to the employees. The
foundation of this theory is based on the motivation that is provided to employees in order to
drive their performance. Each of the levels need to be satisfied in order to reach the next
stage. The proper fulfilment of all the stages is able to increase the productivity levels of the
employees. The major goal related to the implementation of Maslow’s hierarchy of needs is
based on fulfilment of the last stage 8.
According to D'Souza and Gurin, the Maslow’s hierarchy of needs can further be
divided into deficiency based needs versus growth needs. The first major four levels of the
model can be classified under the deficiency based needs. The top level on the other hand can
be placed under the growth based needs. Deficiency needs can arise due to the lack of proper
levels of motivation for the employees that is provided by the organization. The levels of
motivation that are required for the fulfilment of these needs are high 9.
7 Venter, Henry J. "Self-transcendence: Maslow’s answer to cultural closeness." Journal of Innovation
Management4.4 (2017): 3-7.
8 Cherry, Kendra. "Maslow’sHierarchy of Needs." Dursun, A.(2011). Dede Korkut Hikâyelerinde Halk
Hukuku. Electronic TurkishStudies 6.4 (2017).
9 D'Souza, Jeevan, and Michael Gurin. "The universal significance of Maslow’s concept of self-
actualization." The Humanistic Psychologist 44.2 (2016): 210.
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6HUMAN RESOURCE MANAGEMENT
As discussed by King-Hill, the needs tend to increase if the motivation levels in the
organization are low. The lower level of needs has to be satisfied in order to progress towards
the higher level of needs. The proper satisfaction of deficit needs has an impact on the ways
by which the organization is able to fulfil the higher levels of needs. The needs related to
growth have to be felt by the organization on a continuous basis in order to develop string
levels of motivation 10.
According to Singh and Behera, growth based needs are however not based on the
deficit of something within the organization. They are mainly based on the ways by which the
employees wish to grow within the organizational processes. The movement of all employees
within the hierarchy of needs is not always unidirectional in nature and is mainly affected by
their work process 11. Maslow’s hierarchy of needs based model can be analysed as follows,
Physiological needs – As discussed by Di Domenico and Fournier, the
biological requirements related to human survival that can be fulfilled by the
organization are a part of these needs. The basic survival based needs mainly
include, food, shelter, drinks, clothes, sleep. The optimal functionality of
human beings can be fulfilled with the help of proper fulfilment of the needs
12. According to Guy and Pentz, the physiological needs can be considered to
be the most important part of the hierarchy. The organization needs to meet
the needs in order to progress towards the next level of needs 13.
10 King-Hill, Sophie. "Critical analysis of Maslow’s hierarchy of need." The STeP Journal (Student
Teacher Perspectives) 2.4 (2015): 54-57.
11 Singh, Tulika, and Mukti Prakash Behera. "Application of the Maslow's hierarchy of need theory:
Impacts and implications on employee's career stages." Training & Development Journal 7.2 (2016): 43-52.
12 Di Domenico, Stefano I., and Marc A. Fournier. "Esteem Needs." Encyclopedia of Personality and
Individual Differences (2017): 1-4.
13 Guy, Zach, and Taylor G. Pentz. "Millenial Employment through Maslow's Eyes." Career Planning
and Adult Development Journal 33.2 (2017): 22.

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Safety needs – According to Karahanna et al., the safety needs are mainly
based on the protection that is provided to the employees from different
external elements and increase the levels of security as well 14.
Love and belongingness needs – As discussed by Bland and DeRobertis, after
fulfilment of the physiological and safety needs the third major level that is
related to the hierarchy can be fulfilled. The needs are based on interpersonal
relationships are able to motivate the behaviour of the employees. The third
level of Maslow’s hierarchy is based on different elements like, intimacy,
trust, friendship, acceptance, giving love and affection 15.
Esteem needs – As discussed by Winston, Maher and Easvaradoss, the self-
esteem based needs are mainly based on two major categories that include,
esteem based on one’s own self and the desire that is based on the reputation
which is gained from others within the organization. The respect that is gained
by the employees in their own eyes and from other people in the organization
is the most important part of self-esteem based needs 16.
Self-actualization needs According to Sirgy, the realization that the
employees can have based on their personal strengths and growth levels is a
major part of the fifth level of the needs hierarchy. The employees in this case
aim at gaining experiences and personal growth 17.
14 Karahanna, Elena, et al. "The Needs–Affordances–Features Perspective for the Use of Social
Media." Management Review 26.2 (2018): 298-310.
15 Bland, Andrew M., and Eugene M. DeRobertis. "Maslow’s unacknowledged contributions to
developmental psychology." Journal of Humanistic Psychology (2017): 0022167817739732.
16 Winston, Christine N., Hemali Maher, and Veena Easvaradoss. "Needs and values: An
exploration." The Humanistic Psychologist 45.3 (2017): 295.
17 Sirgy, M. Joseph. "Towards a New Concept of Residential Well-Being Based on Bottom-Up
Spillover and Need Hierarchy Theories." A Life Devoted to Quality of Life. Springer, Cham, 2016. 131-150.
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8HUMAN RESOURCE MANAGEMENT
Figure 1 – Maslow’s Hierarchy of needs
Source – (Soni and Soni).
According to Najjar and Fares, the need hierarchy ranges from the simple needs that
are fulfilled by the management of an organization to the complex ones. The proper
fulfilment of the needs is able to affect the ways by which the employees can improve the
performance that is depicted by them within the organization. The employees are an
important part of organizational operations. The proper fulfilment of their needs is highly
significant for the ways by which the productivity levels of the employees can be increased in
an effective manner 18.
To compare and contrast
As discussed by Winston, Maher and Easvaradoss, the Maslow’s Hierarchy of Needs
can be implemented in order to analyse the issues that have been faced by McDonalds based
on training that has been provided to employees. The effects of increase in workload and their
18 Najjar, Dora, and Pascale Fares. "Managerial motivational practices and motivational differences
between blue-and white-collar employees: Application of maslow's theory." International Journal of
Innovation, Management and Technology 8.2 (2017): 81.
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9HUMAN RESOURCE MANAGEMENT
impact on the needs of the employees are important factors that can be analysed with the help
of this model 19.
Although McDonald’s is facing issue in terms of its expansion of menu and lack of
proper employees in different departments of the company, it is spending high on the training
programs of the employees20. It has very recently reaches high degrees that uses up the
savings that are achieved by means of its part-time employee strategy. However, if the
Maslow’s hierarchy of needs is applied to this organisation, it can be seen that most of the
employees working in McDonald’s are at the very first stage of the hierarchy, that is, the
physiological stage, out of five stages.
As per Shaughnessy, the company has indeed improved its policy of providing career
opportunities and this allow each and every employee working in McDonalds to develop and
improve their full potential21. It comprises of very comprehensive training programmes for
the employees and the operations and crew manager and this further led to career
progression. With the same, it also helps the first job candidates to excel and improve by
means of their senior management position through the promotions based on merit of the
candidates. Also, McDonalds keep on offering its employees different incentives and bonuses
to satisfy their working needs and giving them greater possibilities for career growth and
development.
It is to note that McDonalds have four different principles that help in increasing the
performances of its employees. Firstly, there should be different and diverse motivation
system for each and every department in the company that would further help the employees
19 Winston, Christine N., Hemali Maher, and Veena Easvaradoss. "Needs and values: An
exploration." The Humanistic Psychologist 45.3 (2017): 295.
20Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford
University Press, 2016.
21Shaughnessy, Michael F., Bryan Moffitt, and Mia Cordova. "Maslow, Basic Needs and Contemporary Teacher Training Issues." (2018).

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to attain the elements of Maslow’s Hierarchy. Secondly, each and every store need to have
some achievable and specific goals and it is far better if every staff are designated with an
individual own goal for achieving22. Thirdly, the goals are required to be different. It should
be constantly changing and therefore, managers in the McDonalds change their goals after
every six months. Lastly, the fourth principle is that there should be an increase in the salary
of the employee and that should be reasonable.
Notwithstanding this fact, the motivation system of McDonalds practices the
Maslow’s hierarchy theory23. The company has been successful in helping its staffs to
achieve all the stages of Maslow’s hierarchy of needs- “physiological”, “safety”, “belonging
and love”, “self-esteem”, and “self-actualization”. With the stress-free atmosphere, flexibility
in the shift timing etc. that McDonalds provide to its employees, the company have met the
physiological needs of the employees successfully. Flexible shift timing allows the staffs to
successfully balance their personal life and work. The company always have a need for the
employees for helping them run the store effectively.
It helps to fill the basic needs of the employees. As an employee, the food in
McDonalds was phenomenal. It has almost each and everything on its menu. With the same,
the store of McDonalds can be found in each and every town and this means that it is very
easy for the employees as they could get a job in their home location. It also motivates these
employees to work in McDonalds because it satisfies their physiological needs.
However, there is drawback of the same. The employees in McDonalds do not have
the safety needs because they do not have contracted for ensuring that they have long lasting
employment. However, as per Gunders and Bloom, McDonalds is also regarded as one of the
22Sykes, Tracy Ann, and Viswanath Venkatesh. "Explaining post-implementation employee system use and job performance: Impacts of the
content and source of social network ties." MIS quarterly 41.3 (2017).
23McDonald, W. M., Brogan, D. S., Lohani, V. K., & Dymond, R. L. (2015, June). Assessing cognitive development and motivation with
the Online Watershed Learning System (OWLS). In ASEE 122nd Annual Conference & Exposition (pp. 14-17).
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11HUMAN RESOURCE MANAGEMENT
best companies in United States in terms of food safety. In fact, in the hot coffee incident, the
person in charge was sued immediately24.
Furthermore, McDonalds practise organic organisation in its business management.
There is a horizontal communication in between the managers and employees that allows the
employees to communicate in free way with their managers25. With the same, the managers
also accept the feedbacks from the employees. It means that the employers communicate with
their managers effectively and they do not fear them. This in turn build a good relationship
and develop trust among the managers and the employees. However, at the same time, it also
offers the employees to have love and belongings.
Furthermore, Rubery, Keizer and Grimshaw has claimed that the flexible shift timing
also allow the employees to arrange and spend more time with their family members and do
not deprive them from building up family bonds26. Hence, it is believed that this system of
McDonalds motivate the employee for working in the organisation. Also, it is to mention
that the company has partnership with many several companies including the Olympics and
Coca-Cola27.
Moreover, self-growth is offered to each and every employees working in
McDonalds. It is provided to them by means of trainings. By means of these trainings, the
employees become more confident and they then upgrade their skills and competencies and at
the same time, know better what to do in the workplace and attain self-esteem. It is to note
that most of the employees who are working for McDonalds are basically students.
Therefore, the company offer them flexible shifts so that they can do their work after their
24Gunders, Dana, and Jonathan Bloom. Wasted: How America is losing up to 40 percent of its food from farm to fork to landfill. New York:
Natural Resources Defense Council, 2017.
25Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford
University Press, 2016.
26Rubery, Jill, Arjan Keizer, and Damian Grimshaw. "Flexibility bites back: the multiple and hidden costs of flexible employment
policies." Human Resource Management Journal26.3 (2016): 235-251.
27Coburn, Annette, and Patricia McCafferty. "The Real Olympic Games: Sponsorship, Schools, and the Olympics—the Case of Coca-
Cola." Taboo: The Journal of Culture and Education15.1 (2016): 5.
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12HUMAN RESOURCE MANAGEMENT
school hours and that, they do not have to compromise their studies for the sake of earning
money.
In this way, students are not only benefitted just for gaining experiences of working
but at the same time, also attain self-esteem. They achieve a sense of accomplishment and
achievement in this way and this is beyond their studies. By attaining self-esteem, the
employees are also encouraged and inspired and are able to inspire their peers as well.
Moreover, as per Iglesias, Ind and Alfaro, it is also to mention that McDonalds has different
set of strategies to motivate their employees and give them a sense of empowerment28. They
are very less possibly to postpone their working days and in this way, they are always
punctual.
When the employees fail to do the same, it influences their respect towards their
managers and at the same time, also impact the team spirit. The employees of McDonalds get
to attain the self-actualisation, which is the top most column of the Maslow’s hierarchy of
needs through being exposed to the problem solving related to the work issues and hence, it
makes these employees to think creatively for finding out the solutions. The company is all
around the world and is present everywhere.
It is at the top of the fast food chain in the world. The system of motivation that
McDonalds have adopted for motivating its employees has been proved to be successful
because the company has attained success till today29. With the same, it also shows that the
leadership skill of McDonalds for motivating its employees is effective. It motivated the
employees and the staffs to work effectively and towards achieving the organisational goals
and mission.
28Iglesias, Oriol, Nicholas Ind, and Manuel Alfaro. "The organic view of the brand: A brand value co-creation model." Advances in
Corporate Branding. Palgrave Macmillan, London, 2017. 148-174.
29Cater-Steel, Aileen, et al. "Sustaining the momentum: a cross-institutional community of practice for research supervisors." Implementing
Communities of Practice in Higher Education. Springer, Singapore, 2017. 3-17.

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Conclusion
The report can be concluded by stating that McDonalds has faced major issues based
on the ways by which the needs based on training of the employees can be fulfilled. The
organization has increased the menu aggressively, however, the service levels had declined
due to the lack of proper training. The customer satisfaction levels have been quite low and
the organization has not been able to fulfil their demands. The employees have also faced
major levels of issues based on the service challenges that they have faced in the fast food
industry that is highly competitive in nature.
Recommendations
The major recommendation that can be provided to McDonalds based on the
following,
Dealing with the current issues is related to increasing the number of
employees in different organizational positions. The workload can be divided
in an effective manner with the help of more employees.
The training levels in the organization also needs to be improved in order to
improve the services that are being provided to the customers.
The products that are being offered to the customers and the experience that is
gained in the whole process is an important factor that is able to affect the
ways by which McDonalds can maintain the position that it has developed in
the industry.
The training that will be provided to the new employees in this case will last
for six months. This will help them in improving the service levels and retain
the loyal customers.
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14HUMAN RESOURCE MANAGEMENT
Bibliography
Bland, Andrew M., and Eugene M. DeRobertis. "Maslow’s unacknowledged contributions to
developmental psychology." Journal of Humanistic Psychology (2017): 0022167817739732.
Cater-Steel, Aileen, et al. "Sustaining the momentum: a cross-institutional community of
practice for research supervisors." Implementing Communities of Practice in Higher
Education. Springer, Singapore, 2017. 3-17.
Cherry, Kendra. "Maslow’sHierarchy of Needs." Dursun, A.(2011). Dede Korkut
Hikâyelerinde Halk Hukuku. Electronic TurkishStudies 6.4 (2017).
Coburn, Annette, and Patricia McCafferty. "The Real Olympic Games: Sponsorship, Schools,
and the Olympics—the Case of Coca-Cola." Taboo: The Journal of Culture and
Education15.1 (2016): 5.
Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press, 2016.
Di Domenico, Stefano I., and Marc A. Fournier. "Esteem Needs." Encyclopedia of
Personality and Individual Differences (2017): 1-4.
D'Souza, Jeevan, and Michael Gurin. "The universal significance of Maslow’s concept of
self-actualization." The Humanistic Psychologist 44.2 (2016): 210.
Fallatah, Rodwan Hashim Mohammed, and Jawad Syed. "A Critical Review of Maslow’s
Hierarchy of Needs." Employee Motivation in Saudi Arabia. Palgrave Macmillan, Cham,
2018. 19-59.
Gunders, Dana, and Jonathan Bloom. Wasted: How America is losing up to 40 percent of its
food from farm to fork to landfill. New York: Natural Resources Defense Council, 2017.
Document Page
15HUMAN RESOURCE MANAGEMENT
Guy, Zach, and Taylor G. Pentz. "Millenial Employment through Maslow's Eyes." Career
Planning and Adult Development Journal 33.2 (2017): 22.
Iglesias, Oriol, Nicholas Ind, and Manuel Alfaro. "The organic view of the brand: A brand
value co-creation model." Advances in Corporate Branding. Palgrave Macmillan, London,
2017. 148-174.
Karahanna, Elena, et al. "The Needs–Affordances–Features Perspective for the Use of Social
Media." Management Review 26.2 (2018): 298-310.
King-Hill, Sophie. "Critical analysis of Maslow’s hierarchy of need." The STeP Journal
(Student Teacher Perspectives) 2.4 (2015): 54-57.
Lee, Jae Min, and Sherman D. Hanna. "Savings goals and saving behavior from a perspective
of Maslow's hierarchy of needs." Journal of Financial Counseling and Planning26.2 (2015):
129-147.
McDonald, W. M., Brogan, D. S., Lohani, V. K., & Dymond, R. L. (2015, June). Assessing
cognitive development and motivation with the Online Watershed Learning System (OWLS).
In ASEE 122nd Annual Conference & Exposition (pp. 14-17).
Mcdonalds.com (2019). McDonald's: Burgers, Fries & More. Quality Ingredients.. [online]
Mcdonalds.com. Available at: https://www.mcdonalds.com/us/en-us.html [Accessed 7 Mar.
2019].
Najjar, Dora, and Pascale Fares. "Managerial motivational practices and motivational
differences between blue-and white-collar employees: Application of maslow's
theory." International Journal of Innovation, Management and Technology 8.2 (2017): 81.

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16HUMAN RESOURCE MANAGEMENT
Neubauer, Aljoscha C., and Khatuna Martskvishvili. "Creativity and intelligence: A link to
different levels of human needs hierarchy?." Heliyon 4.5 (2018): e00623.
Rubery, Jill, Arjan Keizer, and Damian Grimshaw. "Flexibility bites back: the multiple and
hidden costs of flexible employment policies." Human Resource Management Journal26.3
(2016): 235-251.
Shaughnessy, Michael F., Bryan Moffitt, and Mia Cordova. "Maslow, Basic Needs and
Contemporary Teacher Training Issues." (2018).
Singh, Tulika, and Mukti Prakash Behera. "Application of the Maslow's hierarchy of need
theory: Impacts and implications on employee's career stages." Training & Development
Journal 7.2 (2016): 43-52.
Sirgy, M. Joseph. "Towards a New Concept of Residential Well-Being Based on Bottom-Up
Spillover and Need Hierarchy Theories." A Life Devoted to Quality of Life. Springer, Cham,
2016. 131-150.
Soni, Bina, and Ramesh Soni. "Enhancing Maslow's hierarchy of needs for effective
leadership." Competition Forum. Vol. 14. No. 2. American Society for Competitiveness,
2016.
Sykes, Tracy Ann, and Viswanath Venkatesh. "Explaining post-implementation employee
system use and job performance: Impacts of the content and source of social network
ties." MIS quarterly 41.3 (2017).
Venter, Henry J. "Self-transcendence: Maslow’s answer to cultural closeness." Journal of
Innovation Management4.4 (2017): 3-7.
Document Page
17HUMAN RESOURCE MANAGEMENT
Winston, Christine N., Hemali Maher, and Veena Easvaradoss. "Needs and values: An
exploration." The Humanistic Psychologist 45.3 (2017): 295.
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