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The ERG Theory by Clayton Alderfer is similar to Maslow's hierarchy of needs. However, the ERG Theory has only three categories: existence needs (similiar to Maslow's basic needs), relatedness (pertaining to satisfactorily relating to others); and growth needs (referring to self-development, creativity, growth, and competence). Thus, ERG refers to those three categories of existence, relatedness, and growth. Alderfer suggests that one may be motivated by needs on several levels at the same time. For example, one may go to work to make a living (existence needs satisfaction) and at the same time one may be motivated by good relations with coworkers. Also, according to Alderfer, when people experience frustration on one level, they may focus on the needs at lower-level needs category.
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Fundamentals of Management : Leading / Motivation [BBA 2305]
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