Maslow's Needs and Business Classification

Maslow's Hierarchy of Needs

Abraham H. Maslow, the author, highlights the humanistic theory, classifying human needs into five levels that should be met progressively. These needs are a source of motivation that diminishes as they are satisfied.

• First are the physiological needs, which are basic needs.
• But when the primary needs are well met, safety needs appear. These somehow serve to consolidate what has been achieved so far, such as an indefinite contract or insurance.
• Social needs group needs like love, affection, and feeling accepted by the community. In a company, this means feeling considered, respected, and integrated.
• After that appear the esteem needs. These are the needs to have confidence in yourself, have fame, and prestige. In a company context, this involves evaluating an individual's working capacity, fostering a sense of value.
• Finally, when the individual has satisfied the need for love, they reach the highest level of the pyramid, the need for self-actualization. For Maslow, self-actualization means the desire to become everything one is capable of becoming. In a company context, this could involve achieving proposed objectives, such as becoming a director.

Company Classification Methods

Classification by Activity

• Primary sector: Comprises companies engaged in activities relating to natural resources. Ex: farming.
• Secondary sector: Includes businesses engaged in processing or industrial activities. Ex: Textile Factory.
• Tertiary sector and Services: Includes commercial companies (sale of articles, without modification or transformation), such as Carrefour, or any wholesaler that sells to other companies, and service trades like financial services or transport, such as a bank.

Classification by Size

Companies can be classified into large, small, or medium depending on their size. Several criteria exist to determine size. Some are:

• Economic criteria: Turnover (sales revenue).
• Technical criteria: Level of technology, innovation, capital investment.
• Equity criteria: Assets and liabilities (property, rights, obligations).
• Organizational criteria: Number of employees and organizational structure.

Classification by Capital Ownership

• Private enterprise: Is owned by private individuals or companies, for example, Telepizza.
• Public enterprise: Is owned by the State or any public entity, for example, RENFE.
• Mixed company: Is property that is shared between the state and individuals. However, when capital is primarily state-owned, it is also often classified as a public company.

Classification by Legal Structure

• Individual company: Owned by one person.
• Partnership or Corporate Enterprise: Owned by one or more partners who contribute capital to a common pool for operations.