ERG Theory refers to a theory in psychology that defines the hierarchy of human needs. It was proposed by Clayton Alderfer. ERG Theory states that more than one need can be operational at any given time and a person will remain at a specific need level until it is satisfied. What is the ERG Theory? The ERG Theory is about the hierarchy of three needs 1. Existence Needs Refers to the basic needs of a person for essential materials including the physical and psychological safety needs. 1. Relatedness Needs Refers to a person’s desire for fame, recognition, and association with family, friends, peers, etc. 2. Growth Needs Refers to the need for personal and professional growth and improvement ERG Theory vs Maslow Theory - ERG Theory categorizes needs into three levels whereas Maslow Theory into five levels. - ERG Theory states that more than one need can be operational at any time whereas Maslow Theory states that one need has to be satisfied to reach the next level. - ERG Theory states that the order of priorities vary in people whereas Maslow Theory states that all needs are the same Differences between ERG Theory and Maslow’s Model According to the ERG Theory, it is not necessary to meet lower-level needs. If higher-level needs are not met then the person will focus on satisfying lower-level needs. Alderfer’s Progression & Regression Theory Progression Theory states that people focus on fulfilling higher-level needs once the lower-level needs are fulfilled Regression Theory states that a person will focus on lower-level needs when higher-level needs are blocked Implications of the ERG Theory ERG Theory explains that managers must accept that employees will have many needs that need to be fulfilled simultaneously. Relationship between Alderfer’s ERG Theory Concepts 1. Satisfaction-Progression Moving up on the hierarchy of needs depends on the needs met 2. Frustration-Regression If a person cannot fulfill a higher-level need he will come back to fulfill lower-level needs that are already satisfied 3. Satisfaction-Strengthening Refers to sustaining the existing and pre-satisfied need. This video is on ERG Theory and it has the following sub-topics. Time Stamps 0:00 Introduction 00:21 What is the ERG Theory? 01:14 ERG Theory vs. Maslow Theory 01:59 Differences between ERG theory and Maslow's model 02:33 Alderfer’s Progression & Regression Theory 02:58 Implications of the ERG Theory 03:44 Relationships between Alderfer's ERG theory concepts