ERG Theory is a motivation theory that explains human needs in a simpler and more flexible way than Maslow’s hierarchy.
Alderfer’s ERG Theory
Clayton Alderfer developed the ERG Theory, which groups human needs into three categories:
1. Existence Needs (E)
These are basic survival needs such as:
- Food, water, shelter
- Salary, job security
- Safe working conditions
They are similar to Maslow’s physiological and safety needs.
2. Relatedness Needs (R)
These involve relationships and social connections:
- Friendship
- Family bonds
- Good interpersonal relations at work
- Feeling accepted and valued
This matches Maslow’s social/love needs.
3. Growth Needs (G)
These are related to personal development:
- Learning new skills
- Creativity
- Achievement
- Opportunities to grow and advance
Similar to Maslow’s esteem and self-actualization needs.
Key Features of ERG Theory
✔ More Flexible Than Maslow
Unlike Maslow, Alderfer said people do not need to satisfy needs in a strict order.
✔ Multiple Needs Can Motivate at the Same Time
For example, a person may seek relationships (R) and growth (G) simultaneously.
✔ Frustration–Regression Principle
If a higher-level need (like Growth) is blocked, people may shift back to a lower-level need (like Relatedness or Existence).
Example: If an employee cannot get promotion opportunities, they may focus more on salary or job security.
Importance of ERG Theory
- Helps managers understand employee motivation better.
- Shows that unmet needs cause frustration and can reduce performance.
- Encourages offering multiple opportunities—good pay, healthy work culture, and growth paths.
