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ERG THEORY A theory of human motivationthat focuses on three groups of needs that form a hierarchy: existence needs relatedness needs growth needs The theory suggests that these needs change their position in the hierarchy as circumstances change.
EXISTENCE NEEDSThis group of needs is concerned with providing the basic requirements for material existence, such as physiological and safety needs.In a work context this need is satisfied by money earned in a job for the purchase of food, shelter, clothing, etc.
RELATEDNESS NEEDS This group of needs focuses on the desire to establish and maintain interpersonal relationships with family, friends, co-workers and employers. Interact with other people, receive public recognition, and feel secure around people. The amount of time most people spend at work this need is normally satisfied to some extent by their relationships with colleagues and managers.
GROWTH NEEDS These needs are about the fulfilment of desires to be creative, productive and to complete meaningful tasks. These needs are all about by personal development. In a work context a persons job, career, or profession can provide a significant satisfaction of growth needs.
CONCLUSION Clayton Alderfer extended andsimplified Maslows Hierarchy into ashorter set of three needs: Existence,Relatedness and Growth (henceERG). Unlike Maslow, he did not seethese as being a hierarchy, but beingmore of a continuum.