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CMA Foundation · Fundamentals of Business Economics and Management · Leadership and Motivation - Concepts and Theories

Ravi, a factory supervisor at a Pune manufacturing firm, is offered a company-provided medical insurance cover and a guaranteed pension scheme. Under Maslow's hierarchy, these benefits mainly satisfy which level of need?

These benefits satisfy safety needs. Medical insurance and a pension protect an employee against illness, loss of income and insecurity in old age. Maslow placed such security and stability needs at the second level, above basic physiological needs like food and shelter.

  1. APhysiological needs
  2. BSafety needsCorrect
  3. CEsteem needs
  4. DSelf-actualisation needs

Explanation

Medical insurance and pension provide protection against future risks, illness and old-age insecurity. These are security-related, so they fall under safety needs. Physiological needs relate to immediate survival items such as food, water and shelter, which is why that option is wrong.

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