This theory was developed by Yale psychologist Clayton Alderfer. It extends and refines Maslow’; Needs Hierarchy Concept although there are several important differences between the two.
The E, R, and G stand three basic need categories: Existence, Relatedness and Growth.
Existence Needs:
Are those necessary for basic human survival roughly corresponds to physiological and security needs of Maslow’s hierarchy.
Relatedness Needs:
Involves the need to relate to others and correspond to Maslow’s belongingness and esteem needs.
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Growth Needs:
Are analogous to Maslow’s needs for self-esteem and self-actualization.
In contrast to Maslow’s approach, ERG theory suggests that more than one kind of need, such as relatedness and growth needs, may motivate a person at the same time. One more difference between Maslow’s theory and ERG theory is that the latter includes a satisfaction-progression component and a frustration-repression component.
The satisfaction-progression concept suggests that after satisfying one category of needs, a person progresses to the next level. The frustration-regression component implies that a person who is frustrated in trying to satisfy a higher level of needs eventually will regress to the preceding level.
For example, an individual’s need for relatedness is satisfied and his need for growth emerges. Hi; makes every possible effort for a promotion but due to some institutional constraints, he is unable to get it. Since he is frustrated in satisfying his higher level growth needs, his relatedness need will once again become a dominant motivator.