Alderfer's ERG Theory

Understanding the Priorities in People's Needs

The psychologist Clayton Alderfer developed a new model to explain the simultaneous
nature of Maslow's five needs. Called the ERG Theory of motivation, he first published
it in a 1969 article titled "An Empirical Test of a New Theory of Human Need."
In his theory, Alderfer compressed Maslow's hierarchy of needs from five to three
categories: Existence, Relatedness and Growth.

1. Existence Needs
Include all material and physiological desires (e.g., food, water, air, clothing, safety,
physical love and affection). Maslow's first two levels.
2. Relatedness Needs
Encompass social and external esteem; relationships with significant others like
family, friends, co-workers and employers . This also means to be recognized and feel
secure as part of a group or family. Maslow's third and fourth levels.
3. Growth Needs
Internal esteem and self-actualization; these impel a person to make creative or
productive effects on himself and the environment (e.g., to progress toward one's ideal
self). Maslow's fourth and fifth levels. This includes desires to be creative and
productive, and to complete meaningful tasks.
Even through the priority of these needs different from person to person,
Alberger'sERG theory priorities in terms of the categories' concreteness. Existence
needs are the most concrete, and easiest to verify. Relatedness needs are less concrete
than existence needs, which depend on a relationship between two or more people.
Finally, growth needs are the least concrete in that their specific objectives depend on
the uniqueness of each person.

Next, we experience relatedness needs, where we fulfill our need for satisfying
interpersonal relationships. This level relates to Maslow's social needs and to the
external part of self-esteem needs we feel good about ourselves based on what others
think about us.
Finally, we reach the growth needs level. Here, we are looking for personal growth and
development by doing work that is of high quality, and meaningful. This equates to the
internal part of Maslow's self-esteem needs and to his self-actualization needs.
However, Alderfer's theory goes further than simplifying the number of needs and
broadening what each covers. While he still maintains that there is a general order for
pursuing needs, he claims that this order is not as fixed as it is in Maslow's hierarchy.
Even though existence needs generally have a higher priority than relatedness and
growth needs, priorities can change, depending on the person and the situation.
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.