INCENTIVES MATTER 2

I have met so many undergraduates who have no clue whatsoever as to what they will end up doing with a University education. Some who are not so well educated also do not know in what trajectory  they should direct their lives.
It is not unusual to find young men and women roaming the streets in an endless search for nothing. It is not unusual to meet people who do not know that to make money is to solve problems and get paid for solving them (it’s as simple as that).
Last week, I told you that the fourth principle of Economics according to Gregory Mankiw is that people respond to incentives, and I said incentives matter. Very briefly, let me share with you some of the areas I believe will deliver to you enough incentives to leave where you are and start doing something about where you hope to be.
I remember learning about Abraham Maslow’s Hierarchy of needs in my management class as an undergraduate and was attracted to the way he arranged man’s needs (even though I have reservations about its hierarchical nature yet it was a fair description of man’s needs). With the eye of an undergraduate, I didn’t see needs, I saw problems. I saw opportunities that are always there to take as long as there are human beings. Whether you are seeing this for the first time or you’ve seen it before, I will like to briefly describe Maslow’s Hierarchy of needs. In a subsequent post, I will give examples of things you can do to solve those problems (that is, meet the needs).

Abraham Maslow’s Hierarchy of Needs

1.The Physiological Needs

These include the most basic needs that are vital to survival, such as the need for water, air, food, and sleep. Maslow believed that these needs are the most basic and instinctive needs in the hierarchy because all needs become secondary until these physiological needs are met.
Most of these lower level needs are probably fairly apparent. We need food and water to survive. We also need to breath and maintain a stable body temperature. In addition to eating, drinking, and having adequate shelter and clothing, Maslow also suggested that sexual reproduction was a basic physiological need.

2.Security Needs

These include the needs for safety and security. Security needs are important for survival, but they are not as demanding as the physiological needs. Examples of security needs include a desire for steady employment, health care, safe neighborhoods, and shelter from the environment.
The needs become a bit more complex at this point in the hierarchy. Now that the more basic survival needs have been fulfilled, people begin to feel that they need more control and order to their lives. A safe place to live, financial security, physical safety, and staying healthy are all concerns that might come into play at this stage.

3.Social Needs

These include needs for belonging, love, and affection. Maslow described these needs as less basic than physiological and security needs. Relationships such as friendships, romantic attachments, and families help fulfill this need for companionship and acceptance, as does involvement in social, community, or religious groups.
4.Esteem Needs
After the first three needs have been satisfied, esteem needs becomes increasingly important. These include the need for things that reflect on self-esteem, personal worth, social recognition, and accomplishment. At this point, it become increasingly important to gain the respect and appreciation of others. People have a need to accomplish things and then have their efforts recognized. People often engage in activities such as going to school, playing a sport, enjoying a hobby, or participating in professional activities in order to fulfill this need. Satisfying this need and gaining acceptance and esteem helps people become more confident. Failing to gain recognition for accomplishments, however, can lead to feelings of failure or inferiority.

5.Self-actualizing Needs

This is the highest level of Maslow’s hierarchy of needs. Self-actualizing people are self-aware, concerned with personal growth, less concerned with the opinions of others, and interested fulfilling their potential.
I don’t think anybody should grope in the dark haven seen how much there is to be done in solving the problems of humanity. What are the things you can do to meet these human needs? What factors are holding you back from meeting them? How can you overcome these problems?
My subsequent posts will attempt answers to these questions. I look forward to seeing you then.

Be Inspired!
Remain Motivated!

Credit for the Hierarchy of Needs goes to:
http://psychology.about.com/od/theoriesofpersonality/a/hierarchyneeds.htm

INCENTIVES MATTER

The fourth principle of Economics according to Gregory Mankiw is that people respond to incentives. The first question one is tempted to ask  is: “what are incentives?” Incentives are the driving forces of actions. The reason why you carry out an action is embedded in the incentive you hope it brings you.
Incentives could also be seen as the incremental change in a course of action. This is what Economists describe as the margin.
While we live in a world where information is sometimes asymmetrical, it is however incumbent on us to enquire about the incentives a particular course of action will yield, as much as possible before embarking on it. The price of not doing this is very high.
Listening to a panel presentation yesterday on passion, I heard one of the panelists say it is better not to pursue a career in your area of natural giftedness because according to him, it amounts to commercializing the gift God has freely given you, he rather posited that career paths for people should be in such areas that are outside their place of natural strength. I found his position very misleading because there can not be a better place to have greater spiritual and physical returns than in such areas that one is very strong at, especially naturally. Knowing this will immensely help you to chat a proper career path for yourself. Imagine if Ben Carson, Barack Obama, Oprah Winfrey, Michael Jackson, Albert Einstein and so on did not pursue their careers in areas of their natural giftedness, perhaps they wouldn’t have been as much a blessing to mankind as they turned out to be.
Incentives matter, it drives the kind of person you go out with, the type of church you attend, the kind of friends you keep, the school you attend, and everything about you.
You see,  I have personally made a conscious effort to engage in Ventures that will add value to my overall wellbeing and that of the people around me (that is my incentive). I am not saying I do not care about monetary returns on my investments – visible or otherwise (by the way, Monetary returns and other forms of returns will usually follow right investments) however, you will agree with me that money alone, is not the driving incentive for action- the feeling of contentment, joy, satisfaction in oneself and a sense of peace are priceless. While these may look unattainable in the face of the daunting challenges that we face daily, strife as much as you can to face these challenges doing what you love doing and being where you love being.
Incentives do matter. Define what yours is but make sure it tallies with who you are.

Be Inspired!
Remain Motivated!