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This blog would explain about Alderfer’s ERG Theory of motivation for our students. This blog is written by the experts of assignmenthelpexperts.com. ERG theory is based on the Maslow hierarchy of needs however there are some propositions that differ from Maslow’s theory in ERG theory.

According to Alderfer, needs of employees are divided into three parts such as existence need, relatedness need and growth need. Existence needs are related with basic needs of an employee such as physiological and physical safety needs (Xiao, Qi and Xiao 2009). Relatedness needs are related with wants of employee in which they are interested to develop strong interpersonal relationship with people and also want to attain fame and recognition from public. Growth needs are related with those needs in which they want self-development and personal growth. It is related with Maslow’s self-actualization needs of employees. Level of significance varies from employee to employee for each need (Xiao, Qi and Xiao 2009).

Jiang, Xiao, Qi and Xiao (2009) described that thought of Alderfer’s ERG theory is followed by many organizations while creating a reward strategy. It is because different components of this theory are helpful for creation of reward strategy as it relate the reward strategy with different organizations’ goals and strategies.

Figure 4: Alderfer’s ERG Theory (Source: Michael, Hitt, Miller and Colella 2006)

According to Maslow’s need hierarchy, it is necessary that first a lower need is satisfied and then a higher level need is satisfied but Alderfer’s ERG theory is against this view as Figure 4 reflects that any need can be satisfied in any order as it is possible that an employee is satisfied first with growth need and then relatedness need (Michael, Hitt, Miller and Colella 2006).

ERG theory differs with Maslow theory that it states that at any given point of time, more than one need may be in picture for a particular individual. In ERG theory, there is no focus of level of needs rather an individual may focus of multiple levels of needs. Individuals change from one level of need to another with satisfaction-progression and frustration-regression model i.e. if a need is satisfied, individual progresses to next level of needs. In case, when one level of need is not fulfilled, an individual regresses to below level.

We hope that this post would be useful to you for understanding about ERG Theory. If you have any query regarding this, or you need assignment help, please do send us your queries to info@assignmenthelpexperts.com We would be happy to hear from your side.

References:
Jiang, Z., Xiao, Q., Qi, H. and Xiao, L. (2009) Total Reward Strategy: A Human Resources Management Strategy Going with the Trend of the Times. International Journal of Business and Management, 4 (11), p. 177-183.
Michael, H., Hitt, A., Miller, C.C. and Colella, A. (2006) Organizational Behavior A Strategic Approach, 6th Edition. Canada: John Wiley & Sons.