ERG theory was developed by Clayton Alderfer as a revision of Abraham Maslow's Hierarchy of Needs. ERG theory groups human needs into three broad categories:
Existence needs (corresponding to Maslow’s physiological and safety needs) include a person’s physiological and physically related safety needs. Relatedness needs (corresponding to Maslow’s belongingness needs) include a person’s interpersonal need and also of public recognition. Growth needs (corresponding to Maslow’s esteem and self-actualization needs) include a person’s self-esteem.
ERG theory states that an employee’s behavior is motivated simultaneously by more than one need level. But the difference with Maslow’s theory lies in a frustration-regression process whereby those who are unable to satisfy a higher need become frustrated and regress to the next lower need level.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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