A theory of motivation developed by Abraham Maslow; holds that humans have five levels of needs and act to satisfy their unmet needs. At the base of the hierarchy are fundamental physiological needs, followed in order by safety, social, esteem, and self-actualization needs. Maslow's hierarchy of needs is relevant to organizational theory because both are concerned with human motivation. Understanding what people need—and how people's needs differ—is an important part of effective management.
