Which management theory focuses on employee motivation via a hierarchical structure?

Maslow's Hierarchy of Needs is correct because it specifically addresses how employees are motivated by different levels of needs arranged in a hierarchy. According to Maslow, individuals are driven by a series of needs starting from the most basic physiological requirements, moving up to safety, love/belonging, esteem, and ultimately self-actualization. This theory suggests that higher-level needs become motivational only after lower-level needs have been satisfied, creating a structured approach to understanding employee motivation.

The significance of this hierarchy is that it provides a framework for managers to understand what drives their employees at various levels and how to create an environment that fulfills these needs, fostering greater motivation and potentially leading to higher job satisfaction and productivity. In this way, Maslow's theory highlights the importance of addressing the different layers of employee motivation in a structured manner, which is crucial for effective management and leadership within organizations.