Alderfer’s ERG Theory

Alderfer’s ERG Theory is the extension of Maslow’s Needs Hierarchy, wherein Maslow’s five needs are divided into three categories: Existence Needs, Relatedness Needs, and Growth Needs.

Existence Needs

The existence needs comprise of all those needs that relate to the physiological and safety aspects of human beings and are a prerequisite for survival. Thus, both the physiological and safety needs of Maslow are grouped into one category because of their similar nature and a similar impact on the behaviour of an individual.

Relatedness Needs

The relatedness needs refer to the social needs that an individual seeks to establish relationships with those for whom he cares. These needs cover Maslow’s social needs and a part of esteem needs derived from the relationship with other people.

Growth Needs

The growth needs cover Maslow’s self-actualization needs as well as a part of esteem needs which are internal to the individual, such as a feeling of being unique, personal growth, etc. Thus, growth needs are those needs that influence an individual to explore his maximum potential in the existing environment.