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Credits:
1. According to NTL Institute, Alderfer is an author of 3 books, and also written over 100 articles and book chapters on human needs, inter group relations, race relations, governing boards, and organizational diagnosis.
2. One of this book was the "Psychological Review" 1969, which he first discussed the ERG theory and later wrote another book three years after "Existence, relatedness, and growth: Human needs in organizational settings" 1972 New York, NY, which he developed the theory.
3. Clay also made significant contributions to the study of groups. Integrating systems theory with psychodynamic approaches, he developed “Embedded Intergroup Relations Theory” which was published in his book, "The Practice of Organizational Diagnosis: Theory and Methods" 2010 by Oxford University Press.
4. In 1997, APA selected him for the Harry Levinson Award on organizational consultations.
5. And in 1999 Columbia University’s Teachers College selected him to receive the Janet Helms Award on research and education about race relations.
Clayton Alderfer developed this theory taking into account the shortcomings of Maslow’s hierarchy of needs theory. The major shortcomings of Maslow’s theory was the reality that people do not necessarily fulfill their needs in a hierarchy manner.
Alderfer defined three needs:
1. E - Existence needs – Include all material and physiological desires (e.g., food, water, air, clothing, safety, physical love and affection). Maslow's first two levels.
2. R - Relatedness needs – Encompass social and external esteem; relationships with significant others like family, friends, co-workers and employers. This also means to be recognized and feel secure as part of a group or family. Maslow's third and fourth levels.
3. G - Growth needs – Internal esteem and self-actualization; these impel a person to make creative or productive effects on himself and the environment (e.g., to progress toward one's ideal self). Maslow's fourth and fifth levels. This includes desires to be creative and productive, and to complete meaningful tasks
Similarities and Differences to Maslow's Hierarchy
The ERG motivation theory work situations
On a work level, this means that managers must recognize his employees' multiple simultaneous needs. In Alderfer's ERG model, focusing exclusively on one need at a time will not motivate your people. The frustration-regression principle impacts workplace motivation. For example, if growth opportunities are not provided to employees, they may regress to relatedness needs, and socialize more with co-workers. If you can recognize these conditions early, steps can be taken to satisfy the frustrated needs until the employee is able to pursue growth again.
Implications for financial incentives in Alderfer's ERG model
Financial incentives may satisfy the need for growth, and for recognition by others. As you can see, in this theory financial incentives can only fulfill human needs indirectly, through their perceived value and effect on other people. So even though you may provide financial incentives, if your people's other needs aren't being met, according to Alderfer's ERG theory your workers will not be motivated.
1. Satisfaction-progression
Moving up to higher-level needs based on satisfied needs.
2. Frustration-regression
If a higher level need remains unfulfilled, a person may regress to lower level needs that appear easier to satisfy.
3. Satisfaction-strengthening
iteratively strengthening a current level of satisfied needs.
Questions?