ERG Theory of Motivation

ERG THEORY OF MOTIVATION
The word motivation is coined from the Latin word “movere” which means to move.
Motivation is defined as an internal drive that activates behaviour and gives it direction.
Motivation can be broadly defined as the forces acting on or within a person that cause the
arousal, direction and persistence of goal-directed, voluntary effort. The term motivation
theory is concerned with the processes that describe why and how human behaviour is
activated and directed. It is regarded as one of the most important areas of study in the field
of organisational behaviour.
There are two different categories of motivational theories such as content theories, and
process theories. Motivation theory is thus concerned with the processes that explain why and
how human behaviour is activated.
The content theory of motivation, also known as need theory mainly focuses on the internal
factors that energise and direct human behaviour.
Abraham Maslow developed the theory of hierarchy of needs, which suggests that individual
needs exist in a hierarchy consisting of physiological needs, security needs, Belongingness
needs, esteem needs, and self-actualisation needs. Physiological needs are the most basic
needs for food, water, and other factors necessary for survival.
Security needs include needs for safety in one’s physical environment, stability, and freedom
from emotional distress. Belongingness needs, relate to desires for friendship, love, and
acceptance within a given community of individuals. Esteem needs are those associated with
obtaining the respect of one’s self and others. Finally, self-actualisation needs are those
corresponding to the achievement one’s own potential, the exercising and testing of one’s
creative capacities, and, in general, to becoming the best person one can possibly be.
Unsatisfied needs motivate behaviour; thus, lower-level needs such as the physiological and
security needs must be met before upper-level needs such as belongingness, esteem, and self-
actualisation can be motivational.
Maslow’s needs hierarchy is one of the best-known organisational behaviour theories but the
model is too rigid to explain the dynamic and unstable characteristics of human needs.
Researchers have found that individuals needs do not cluster neatly around the five categories
described in the model. Moreover, gratification of one need level does not necessarily lead to
increased motivation to satisfy the next higher need level. Although Maslow’s model may not
predict human needs as well as scholars initially expected, it provides an important
introduction to human needs and has laid the foundation for Alderfer’s ERG theory, which
has better research support.
The Existence-Relatedness-Growth (ERG) theory of motivation was proposed by Clayton P.
Alderfer in 1969. The ERG theory is an adaptation of Maslow’s theory on the hierarchy of
needs. Maslow’s theory identifies five levels of motivational needs: physiological needs,
safety needs, love and belonging needs, esteem needs, and self- actualization needs. Alderfer
condensed Maslow’s 5 stages to three and just like Maslow, he gave order to his three stages
which were prioritized on the basis of concreteness. The three stages of Alderfer’s theory are:
• Existence
• Relatedness
• Growth
Existence refers to our basic survival needs as humans, the most concrete and easy to verify
needs (food and water, shelter, good health, and feeling safe) It comprises of the first two
levels of Maslow’s theory i.e. the physiological and the safety needs.
Relatedness refers to our need to relate to other people. Relatedness need is a less concrete
stage as it has to do with more than one person and so, harder to verify. Needs included in
this category are social needs and need for external esteem. The stage condenses the third and
fourth levels of Maslow’s theory i.e. The need for belongingness and the need for self-esteem
Growth refers to our need for personal development, to be creative and to perform
meaningful work (self-actualization). Growth needs are the least concrete stage since it
differs from person to person and often very difficult to satisfy. Needs included in this
category are internal esteem and self-actualization. The stage comprises of the fourth and
fifth levels of Maslow’s theory i.e. Self-esteem and Self-actualization.
McClelland’s learned that needs or three-need theory uses projective techniques called
Thematic Aptitude Test (TAT) so as to evaluate people based on three needs: power,
achievement and affiliation. People with high need of power take action in a way that
influences the other’s behaviour.
 The ERG theory allows for different levels of needs to be pursued simultaneously.
 The ERG theory allows the order of the needs be different for different people.
 The ERG theory acknowledges that if a higher-level need remains unfulfilled, the
person may regress to lower-level needs that appear easier to satisfy.
 This is known as the frustration-regression principle. Thus, while the ERG theory
presents a model of progressive needs, the hierarchical aspect is not rigid. This
flexibility allows the ERG theory to account for a wider range of observed
behaviours. For example, it can explain the “starving artist” who may place growth
needs above existence ones.
Implications of ERG Theory for Management

If the ERG theory holds, then, managers must recognise that an employee has multiple needs
to satisfy simultaneously. Furthermore, if growth opportunities are not to employees, they
may regress to relatedness needs. If the manager is able to recognise this situation, then steps
can be taken to concentrate on relatedness needs until the subordinate is able to pursue
growth again.
Workplaces can be designed to improve employee performance by removing distractions
while also encouraging focus and collaboration.
By creating a space of understanding and expression, employees may contribute to the latest
innovative ideas by exploiting freedom of opinions and peer relationships.
If the job provides interesting and varied challenges, it’s easier to be motivated as the
employees are being presented with growth opportunities each day.
Alderfer (1969) made seven propositions about the relationships between human needs and
desires and they are presented thus:
i. The less existence needs are satisfied, the more they will be desired.
ii. The less relatedness needs are satisfied, the more existence needs will be desired.
iii. The more existence needs are satisfied, the more relatedness needs will be desired.
iv. The less relatedness needs are satisfied, the more they will be desired.
v. The less growth needs are satisfied, the more relatedness needs will be desired.
vi. The more relatedness needs are satisfied, the more growth needs will be desired.
vii. The more growth needs are satisfied, the more they will be desired.
These seven propositions can also be shown in a diagrammatic form. Any desire can be
affected by several types of satisfaction. Any satisfaction in turn, can affect more than one
type of desire (Alderfer, 1969). The seven propositions can be arranged into four categories
thus:
Simple frustration: This group includes propositions 1 and 4, which specify that satisfaction
and desires at the same level are negatively correlated. This happens when an individual is
unsatisfied with a certain need and has thus intensified his or her desires for that particular
need.
Satisfaction progression- Satisfaction of a more concrete stage increases the likelihood of
progressing to a less concrete stage but there is no compulsion for satisfaction before
progression.
Satisfaction progression includes propositions 3 and 6, which specify that satisfaction in
lower order needs is positively correlated with higher order desires. In other words, once
lower order needs are fulfilled, an individual will tend to progress toward higher order needs,
thus intensifying the desire for higher order needs.
Frustration regression- If people find it difficult to reach a particular higher stage (frustrated),
they can double their effort in a lower stage to serve as a motivator in achieving the higher
one (regression). This group includes propositions 2 and 5. While the previous two categories
can be related to Maslow’s theory of human needs, this category is unique to Alderfer, which
indicates that satisfaction in higher order needs is negatively correlated with lower order
desires. Therefore, when frustration occurs with higher order needs, an individual would seek
to full fill lower order needs, thus intensifying the desire for lower order needs.
Satisfaction strengthening - Satisfaction does not necessarily lead to progression as it can also
cause the individual to keep reliving in the pleasure of gratifying the lower-level need
(strengthening) till he/she is capable of achieving a higher-level need. This group includes
only proposition 7, which states that the more growth needs are satisfied, the more they are
desired.
Need Frustration Strength of Desires Need Satisfaction
Existence Need Existence Existence Need

(p1)
Frustration Desires Satisfaction
(p3)
(p2)
Relatedness Need Relatedness Relatedness Need

Frustration (p4)
Desires Satisfaction
(p6)
Growth Need (p5) Growth Growth Need

Frustration Desires Satisfaction
(p7)
Differences between Maslow’s and Alderfer’s theories

 As against Maslow’s, Alderfer’s theory does not compel the satisfaction of a lower-level
need before progression to a higher level one.
 There is the concept of regression in Alderfer’s theory i.e. the inability to satisfy higher
level need increases the desire to satisfy a more concrete one. This is absent in Maslow’s
theory.
• Unlike in Maslow’s theory, needs at multiple levels can be pursued at the same time.
• In Maslow’s theory, needs must be satisfied in sequence from the bottom to the top of the
pyramid, one at a time. This is not the case with ERG Theory, where different levels of needs
can be satisfied at any time: needs aren’t progressive: For example, an individual can feel that
they are having their growth needs met whilst still feeling unsatisfied in their relationships.

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ERG THEORY OF MOTIVATION

Implications of ERG Theory for Management

Existence Need Existence Existence Need

Relatedness Need Relatedness Relatedness Need

Growth Need (p5) Growth Growth Need

Differences between Maslow’s and Alderfer’s theories

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