ERG theory

The ERG Theory of Clayton P. Alderfer is a model that appeared in 1969 in

a Psychological Review article entitled "An Empirical Test of a New Theory

of Human Need".

In a reaction to the famous Hierarchy of Needs by Maslow, Alderfer

distinguishes three categories of human needs that influence worker's

behavior; existence, relatedness and growth.

 These ERG Theory categories are

Existence Needs: physiological and safety needs (such as hunger, thirst).

The first two levels of Maslow.

Relatedness Needs: social and external esteem (involvement with family,

friends, co-workers and employers). The third and fourth levels of Maslow.

Growth Needs: internal esteem and self actualization (the desire to be

creative, productive and to complete meaningful tasks). Maslow's fourth and

fifth levels.
 ERG Theory and Maslow

Contrarily to the idea by Maslow that access to the higher levels of his pyramid

required satisfaction in the lower level needs, the ERG areas of Alderfer are

simultaneous needs.

ERG Theory recognizes that the importance of the three categories may vary

for each individual. Managers must recognize that an employee has multiple

needs, that must be satisfied simultaneously. According to the ERG theory, if

you focus exclusively on one need at a time, this will not effectively motivate.
 The frustration-regression principle

In addition, the ERG theory acknowledges that if a higher level need remains unfulfilled,

the person may regress towards lower level needs, which appear easier to satisfy. This is

known as: the frustration-regression principle. This principle impacts workplace

motivation. For example, if growth opportunities are not offered to the employees , they

may regress towards relatedness needs, and socialize more with co-workers.

If management can recognize these conditions early, steps can be taken to satisfy the

frustrated needs until the subordinate is able to pursue growth again

 Re-inforcement Theory

Believes that behavior of people is environmentally

caused.