1. Alderfer’s ERG Theory
K.N.DIMUTHU CHATHURANGA

2. Clayton P. Alderfer
 American Psychologist
 Introduced the ERG theory in 1969
 Alderfer's ERG Theory Simplifies Maslow's Hierarchy of Needs
 Alderfer's ERG theory contends there are three basic needs an employee seeks to fulfill.
As each need is fulfilled, it serves as motivation to fulfill a different need.
ERG stands for Existence, Relatedness and Growth, and these are defined as:
 Existence - the need for basic material existence, like physiological health and safety
 Relatedness - the need for interpersonal connections, social status and recognition
 Growth - the need for personal development, including creative and meaningful work
As each need is met, another need could be satisfied. In fact, at any point, several could be
satisfied.

3.  Existence needs motivate at a more fundamental level than relatedness needs,
which, in turn supersedes growth needs.
 Satisfaction-Progression > Moving up to higher level needs based on satisfied
needs (Applicable in Maslow’s theory. Not necessarily in ERG theory)
 Frustration-Regression > If a higher-order need is frustrated, an individual
may regress to increase the satisfaction of a lower-order need which appears
easier to satisfy.
EXISTENCE
RELATEDNESS
GROWTH
Satisfaction-
Progression
Frustration-
Regression

4. ERG Theory & MASLOW
MASLOW ERG
ERG theory has three key differences from Maslow's theory:
 It suggests that people can be motivated by needs from more than one level at the same time.
There is not necessarily a strict progression from one level to the next.
 It acknowledges that the importance of the needs varies for each person and as circumstances
change. Some people might put a higher value on growth than relationships at certain stages of
their lives.
 It has a "frustration-regression" element. This means that that if needs remain unsatisfied at one
of the higher levels, the person will become frustrated, and go back to pursuing lower level needs
again.