Question : Statement 1: Financial incentives can fulfill both physiological and self-actualization needs.
Statement 2: Financial incentives are effective only for addressing physiological needs.
Option 1: Both statements are correct.
Option 2: Statement 1 is correct, and statement 2 is false.
Option 3: Both statements are incorrect.
Option 4: Statement 2 is correct, and statement 1 is incorrect.
Correct Answer:
Statement 1 is correct, and statement 2 is false.
Solution : The correct answer is (b) Statement 1 is correct, and statement 2 is false.
Statement 1 is correct. Financial incentives, such as salary, bonuses, or financial rewards, can fulfill both physiological needs (such as food, shelter, and other basic necessities) and higher-level needs like self-actualization (fulfillment of personal potential and growth) as described in Maslow's hierarchy of needs. Financial incentives can provide a sense of security, status, and opportunities for personal growth and self-improvement.
Statement 2 is false. Financial incentives can address not only physiological needs but also higher-level needs, including safety, social belonging, esteem, and self-actualization. While financial incentives can help meet basic physiological needs, they can also motivate individuals to achieve higher goals and aspirations, making them effective for addressing a range of needs beyond just the physiological.
