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.
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.


