ERG Theory To address some of the limitations of Maslow's hierarchy as a theory of motivation, Clayton Alderfer proposed the ERG

theory, which like Maslow's theory, describes needs as a hierarchy. The letters ERG stand for three levels of needs E!istence, Relatedness, and Growth. The ERG theory is based on the work of Maslow, so it has m"ch in common with it b"t also differs in some important aspects. #imilarities to Maslow's $ierarchy #t"dies had shown that the middle levels of Maslow's hierarchy have some overlap% Alderfer addressed this iss"e by red"cin& the n"mber of levels to three. The ERG needs can be mapped to those of Maslow's theory as follows

E!istence 'hysiolo&ical and safety needs Relatedness #ocial and e!ternal esteem needs Growth #elf(act"ali)ation and internal esteem needs

*ike Maslow's model, the ERG theory is hierarchical ( e!istence needs have priority over relatedness needs, which have priority over &rowth. +ifferences from Maslow's $ierarchy ,n addition to the red"ction in the n"mber of levels, the ERG theory differs from Maslow's in the followin& three ways -nlike Maslow's hierarchy, the ERG theory allows for different levels of needs to be p"rs"ed sim"ltaneo"sly. . The ERG theory allows the order of the needs be different for different people. . The ERG theory acknowled&es that if a hi&her level need remains "nf"lfilled, the person may re&ress to lower level needs that appear easier to satisfy. This is known as the fr"stration(re&ression principle. Th"s, while the ERG theory presents a model of pro&ressive needs, the hierarchical aspect is not ri&id. This fle!ibility allows the ERG theory to acco"nt for a wider ran&e of observed behaviors. /or e!ample, it can e!plain the 0starvin& artist0 who may place &rowth needs above e!istence ones.

,mplications for Mana&ement ,f the ERG theory holds, then "nlike with Maslow's theory, mana&ers m"st reco&ni)e that an employee has m"ltiple needs to satisfy sim"ltaneo"sly. /"rthermore, if &rowth opport"nities are not provided to employees, they may re&ress to relatedness needs. ,f the mana&er is able to reco&ni)e this sit"ation, then steps can be taken to concentrate on relatedness needs "ntil the s"bordinate is able to p"rs"e &rowth a&ain.