Write a short note on Existence Relatedness Growth or ERG theory.

 Clayton Paul Alderfer, an American psychologist, further developed Maslow’s hierarchy of needs theory by proposing what is known as the ERG theory. ERG stands for Existence needs, Relatedness needs and Growth needs. E, R and G represent different needs from the lowest level to the highest level. In this sense, it has similarities with the Hierarchy of needs theory, but there is an important difference between the two: As per the ERG theory, more than one level of needs can be activated at the same time. The existence needs as per the ERG theory correspond to the first two levels of the Hierarchy of needs theory: Physiological needs and Safety needs. The relatedness needs of the ERG theory are somewhat similar to the ‘Belonging and love’ needs (social needs) and to some portion of the Esteem needs of Maslow’s theory. The remaining portion of the Esteem needs (the self-esteem part) and the self-actualisation part of Maslow’s Hierarchy of needs theory are grouped as Growth need in the ERG theory. An implication of ERG theory to organisational behaviour is that if a higher order need is not satisfied, a person might try to get a lower level need satisfied in its place. For example, if an employee is neither able to derive job satisfaction from his work nor is he able to enjoy a comfortable relationship with his supervisors, he might demand higher wages.

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