Alderfer Erg Theory in Management

1.1 Introduction:-

The ERG Theory of Clayton P. Alderfer is a model that appeared in 1969 in a Psycholo -gical Review article entitled "An Empirical Test of a New Theory of Human Need". In a reaction to the famous Hierarchy of Needs by Maslow, Alderfer distinguishes three categories of human needs that influence worker's behavior; existence, relatedness and growth.

The ERG categories of human needs are

Existence Needs: physiological and safety needs (such as hunger, thirst and sex).

Relatedness Needs: social and external esteem (involvement with family, friends, co-workers and employers).

Growth Needs: internal esteem and self actualization (the desire to be creative, productive and to complete meaningful tasks).

• 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