Beyond incentives: psychological need satisfaction, non-financial motivation, and managerial effectiveness in public organizations

Purpose In public organisations with constrained financial incentives, motivation increasingly reflects employees' day-to-day interactions with managerial practice. This article examines how psychological need satisfaction (NS) influences employees' evaluations of non-financial motivational methods (NFMMs) and managerial effectiveness. Design/methodology/approach Grounded in Self-Determination Theory, the study conceptualises NS as a multidimensional construct comprising basic, relational, and higher-order needs. We analysed survey data from 807 Romanian public-sector employees using PLS-SEM to test the direct and mediated relationships between NS, perceived NFMMs effectiveness and perceived managerial effectiveness. Findings Results show that NS functions as a core interpretive mechanism through which employees assess non-financial motivation and managerial practices. Higher-order needs, which encompass personal growth, development, creativity, esteem, and self-realisation, make the strongest contribution to overall need satisfaction. In turn, NS has a positive effect on both NFMMs effectiveness and managerial effectiveness. These evaluations depend less on formal HRM instruments and more on how managers enact practices in daily interactions. Practical implications Motivation improves when HRM practices support core psychological needs. The strongest NFMMs signals relate to recognition, respect, autonomy support, and development, while participatory behaviours, collaboration, task support, and fairness drive managerial effectiveness. Small, procedurally feasible forms of autonomy support help reinforce employees' sense of competence and control, offering actionable avenues for HRM improvement even in resource-constrained administrative environments. Originality/value The article refines need-based frameworks by showing how motivational meaning develops in highly institutionalised public-sector settings and clarifies how managerial behaviour and need satisfaction jointly shape motivational evaluations. Highlights