Alderfer’s ERG Theory
Understanding the foundations of human motivation is crucial for both managers and educators who aim to create an effective and fulfilling environment. This article will explain the evolution of motivational theories, focusing on Alderfer’s ERG Theory and how it diverges from and complements Maslow’s Hierarchy of Needs. The practical implications of ERG Theory in the areas of management and education will also be explained, providing insights into how it can be used for improved performance and satisfaction.
ERG Theory of Motivation
Clayton Paul Alderfer, an American psychologist, expanded on Maslow’s well-known hierarchy of needs to create a unique framework called the ERG theory. This model was developed between the years 1961 to 1978, during which Alderfer rigorously tested its principles and published academic papers to support it.

The ERG theory simplifies human needs into three essential categories: Existence, Relatedness, and Growth, creating the acronym ERG. Unlike Maslow’s five-tier model, Alderfer’s approach allows for greater flexibility. For instance, his Existence category encompasses basic life essentials such as food, water, and a sense of security. These mirror Maslow’s physiological and safety-related needs (1).
The second category, Relatedness, deals with our social connections and relationships with others. It includes the need for friendship, family bonds, and social esteem, which also correlates with Maslow’s concepts of love and belonging.
The third and final category is Growth, which focuses on our inner drive for personal improvement and achievement. This includes aspects like creativity, problem-solving, and achieving one’s full potential, matching up with the higher-level needs in Maslow’s hierarchy, particularly self-esteem and self-actualization.
What sets the ERG theory apart is its concept of progression and regression. According to Alderfer, if an individual’s needs in a lower category are met, they will then channel their efforts into fulfilling higher-level needs. On the flip side, if they face difficulties in satisfying higher-level needs, they will refocus their energies on lower-level needs. This dynamic nature of human needs makes the ERG theory a valuable tool for understanding motivation, particularly in organisational settings (2).
See also: Expectancy Theory Of Motivation
Maslow’s Maslow’s Hierarchy of Needs vs ERG theory
As mentioned above, Alderfer’s ERG theory took inspiration from Maslow’s Hierarchy of Needs. While both theories aim to explain the driving forces behind human behavior, they differ in key aspects that make each unique.
Maslow’s model suggests a step-by-step progression, where a person must satisfy lower-level needs, such as safety and physiological requirements, before advancing to higher-level needs like social belonging and self-actualization. In contrast, Alderfer’s takes a more flexible approach. In his ERG Theory, individuals can focus on multiple needs at the same time. For instance, a person might be motivated by their growth and relatedness needs simultaneously, without having their basic existence needs fully met (3).
See also: Theory X And Theory Y, Douglas McGregor
This flexibility in Alderfer’s theory allows for the consideration of more individual differences. Alderfer argues that people can have different priorities when it comes to their needs, depending on their unique life situations. A good example would be that of an ambitious artist who, despite facing financial difficulties, is driven more by their passion for art (a growth need) than by the need to secure basic necessities (an existence need).
Another really interesting aspect of ERG Theory is the importance of perceived progress. Alderfer puts forward the idea that an individual can be motivated by a sense of progression in meeting their needs. So, for example, if someone believes they are making some progress in their social relationships, they might feel inspired to focus on personal growth, even if their social needs still have not been completely fulfilled.
ERG Theory also differs from Maslow’s model through its frustration-regression principle. If a person finds it challenging to meet higher-level needs, they are likely to step back and focus on fulfilling lower-level needs. This mechanism accounts for the dynamic shifts in priorities that people often experience in life, and it adds a layer of complexity to Alderfer’s model that is not present in Maslow’s more linear approach.
See also: Herzberg’s Motivation-Hygiene Theory: Two-Factor
Implications of the ERG Theory for managers and educators
Alderfer’s ERG Theory potentially offers useful insights for managers and educators, particularly in understanding the diverse motivations that drive individuals in a workplace or educational setting. One fundamental takeaway is that people have multiple needs that are active at the same time, and it is vital to address these concurrently rather than focusing solely on one aspect.
In more traditional approaches a manager might focus on just one factor, such as job security, to motivate an employee. However, the ERG Theory cautions against such a simple approach. The theory’s unique principle of frustration-regression suggests that when higher-level needs, like growth, are not met, employees might shift their focus to other needs, like social relationships or even financial rewards (4).
To illustrate this, imagine an employee who is not given the chance to advance or grow in their job. According to ERG Theory, this person might start prioritising their social relationships at work as a substitute. However, if the work environment is not conducive to social interactions, they might further shift their attention to securing additional financial benefits. Managers who understand these changing dynamics can act fast to identify and address unmet needs, enabling the employee to refocus on growth and advancement opportunities.
This understanding is also valuable in educational settings, where students also have a range of needs that require simultaneous attention. Educators can use the principles of ERG Theory to create a more motivating and enriching learning environment (5).
See also: McClelland’s Three Needs Theory: Power, Achievement, And Affiliation
Conclusion
In summary, Alderfer’s ERG Theory provides a multifaceted framework for understanding human needs and motivations, making it an invaluable tool for managers and educators alike. By taking a more nuanced approach to meet the various needs of employees or students, professionals in these fields can engender a more productive and satisfying experience for everyone involved.
References
- Caulton, J. R. (2012). The development and use of the theory of ERG: A literature review. Emerging Leadership Journeys, 5(1), 2-8.
- Alderfer, C. P. (1969). An empirical test of a new theory of human needs. Organizational behavior and human performance, 4(2), 142-175.
- Alderfer, C. P. (1989). Theories reflecting my personal experience and life development. The Journal of Applied Behavioral Science, 25(4), 351-365.
- Schneider, B., & Alderfer, C. P. (1973). Three studies of measures of need satisfaction in organizations. Administrative Science Quarterly, 489-505.
- Turabik, T., & Baskan, G. A. (2015). The importance of motivation theories in terms of education systems. Procedia-Social and Behavioral Sciences, 186, 1055-1063.