The document presents an overview of ERG theory of motivation developed by Clayton Paul Alderfer as an alternative to Maslow's hierarchy of needs. The key points are: 1. Alderfer developed the ERG theory which classifies human needs into existence, relatedness, and growth needs rather than Maslow's five hierarchical needs. 2. Unlike Maslow's hierarchy, ERG theory proposes that needs can be satisfied simultaneously rather than in a strict hierarchy, and frustration in higher needs can cause regression to lower needs. 3. The theory aims to provide a more flexible and realistic model of human motivation compared to Maslow's rigid hierarchy, but it also faces some criticism around lack of empirical research

1. Welcome

2. ERG Theory of Motivation
Presented
By
Business Dynamics
Department of International Business
University of Dhaka

3. Group Members of
Business Dynamics
Name ID
Md. Nurul Hudda 253
Al- Amin 255
Rabiul Hasan 256
Md. Fahad Hossain 258
MD. Shahriar Sharif 262
Md. Abir Hossan 271

4. Contents
 Developer’s Introduction.
 ERG Model.
 ERG theory relationship with the Maslow’s Need.
 ERG theory relationship among the needs.
 Similarities between Hierarchy of needs and ERG theory.
 Dissimilarities between Hierarchy of needs and ERG
theory.
 Merits of ERG theory.
 Criticisms of Alderfer’s theory.
 Conclusion.

5. Developer’s Introduction
Clayton Paul Alderfer
September 1, 1940
Clayton Paul Alderfer introduced
ERG Theory Model in a
psychological review article ‘An
Empirical test of a new Theory of
Human Need In a reaction to
Maslow's famous Hierarchy of
Needs. Alderfer distinguishes
three categories of human needs
that influence worker’s
behavior; existence, relatedness
and growth.

6. ERG Model
In ERG Theory Clayton Alderfer developed a new model
to explain the simultaneous nature of Maslow's five
needs. Alderfer compressed Maslow's hierarchy of
needs from five to three.
ERG Model
Existence Relatedness Growth

7.  Existence Needs
 This corresponds closely to Maslow's first two levels.
Material
desires
Physiological
desires

8.  Relatedness Needs
Social
External
Esteem
 Corresponds to Maslow's third and fourth levels.

9. Growth Needs
 Maslow's fourth and fifth levels.
Internal
esteem
Self
actualization

10. Relationships with the
Maslow’s Need

11. ERG theory Relationship among the needs
 A person may move to higher level needs without satisfying the lower level
needs(Progression not hierarchy)
 He/she may regress to previous needs level if the higher level needs are
not satisfied. (Frustration/Regression)

12. Similarities between Hierarchy of
needs and ERG theory
 Both were formulated to explain human motivation
in influencing behavior.
 Basic needs emphasized in both are the same.
 Overall structure of need categories is also the same.

13. Dissimilarities between Hierarchy of
needs and ERG theory
 A lower level need does not necessarily have to be
gratified for a higher level to become relevant.
 If a relatively more significant need is not gratified,
the desire to gratify a lesser need will be increased.
 ERG theory does have some form of hierarchy
according to concreteness, but it also allows the
order of the needs to differ for different people.

14. Manager’s Implications
• Must Recognize employees’ multiple simultaneous
needs.
• Focusing on fulfilling simultaneous needs of
employees.
• Frustration-regression principle impacts workplace
motivation.

15. Merits of ERG theory
 This concept of needs is more direct and simple to
understand.
 It is more flexible and therefore, more realistic.
 The provision of backlash of fulfillment of a need
accords with reality

16. Criticisms of Alderfer’s theory
• Allowing individuals to simultaneously satisfy any of
the needs
• Lack of research.
• Much time would need to be spent with the subject.
• Frustration-regression concept may result in lower
performance.

17. Conclusion
Clayton Alderfer extended and simplified Maslow's
Hierarchy into a shorter set of three needs: Existence,
Relatedness and Growth as 'ERG'. Unlike Maslow, he
did not see these as being a hierarchy, but being more
of a continuum.