ERG Theory

ERG Theory

ERG Theory Jonathan Poland

ERG theory is a motivational theory that was developed by Clayton Alderfer. It is an extension of Maslow’s hierarchy of needs and proposes that there are three main human needs: existence, relatedness, and growth. ERG theory states that motivations can be grouped into the categories: existence, relatedness and growth. Existence are motivations that are at the basic survival level such as the need to eat and be safe. Relatedness are social motivations. Growth is a set of motivations related to personal development and self-actualization.

According to ERG theory, the existence needs are the basic physiological and safety needs that are necessary for survival. These include needs for food, shelter, and security. When these needs are satisfied, individuals are motivated to fulfill their relatedness needs, which are the need for social connections and interpersonal relationships. Once the relatedness needs are satisfied, individuals are motivated to fulfill their growth needs, which are the needs for personal development and self-actualization.

ERG theory suggests that individuals can be motivated by different needs at different times, and that they may move back and forth between the different levels of needs. For example, someone who is motivated by their relatedness needs may temporarily shift their focus to their existence needs if they face a threat to their survival.

ERG theory also proposes that frustration and regression can occur when an individual’s needs are not met. Frustration occurs when an individual is unable to fulfill a higher-level need, such as growth, and regression occurs when an individual reverts to focusing on lower-level needs, such as existence, in response to frustration.

Overall, ERG theory provides a more complex and dynamic view of human motivation than Maslow’s hierarchy of needs. It emphasizes the interconnectedness of different needs and the role of frustration and regression in motivation.

Learn More
Sales Skills Jonathan Poland

Sales Skills

Sales skills are the abilities, knowledge, and personal characteristics that enable an individual to succeed in a sales role. These…

Brand Vision Jonathan Poland

Brand Vision

A brand vision is a statement that paints a picture of the future your brand. Brand vision is the long-term…

Risk Management 101 Jonathan Poland

Risk Management 101

Risk management is the process of identifying, assessing, and mitigating potential risks to an organization’s assets, operations, and reputation. It…

Taxes Jonathan Poland

Taxes

Taxes are mandatory financial contributions that are levied by a government on individuals, businesses, and other organizations. The money collected…

Income Statement Jonathan Poland

Income Statement

An income statement is a financial statement that shows a company’s revenues, expenses, and profits over a specific period of…

Competitive Threats Jonathan Poland

Competitive Threats

A competitive threat is a potential source of competition that has not yet materialized, but has the potential to do…

Risk Management Process Jonathan Poland

Risk Management Process

Risk management is the practice of identifying and mitigating potential risks that could result in financial losses or other negative…

Top-down vs Bottom-up Jonathan Poland

Top-down vs Bottom-up

Top-down and bottom-up are opposing approaches to thinking, analysis, design, decision-making, strategy, management, and communication. The top-down approach begins with…

Brand Switching Jonathan Poland

Brand Switching

Brand switching refers to the act of a customer switching from a brand that they were previously loyal to, to…

Content Database

Search over 1,000 posts on topics across
business, finance, and capital markets.

Change Management Jonathan Poland

Change Management

Change management is the process of planning and implementing changes within an organization. It involves analyzing the current state of…

Serviceable Market Jonathan Poland

Serviceable Market

Serviceable market is the part of the total addressable market that can actually be reached.

Overhead Costs Jonathan Poland

Overhead Costs

Overhead costs, also known as “indirect costs” or “indirect expenses,” are the costs that a company incurs in order to…

Product Features Jonathan Poland

Product Features

A product feature is a characteristic or aspect of a product that contributes to its overall functionality and performance. Product…

What is a Market? Jonathan Poland

What is a Market?

A market is a place or platform where buyers and sellers come together to exchange goods and services. Markets can…

What is Fandom? Jonathan Poland

What is Fandom?

Fandom refers to the subculture that develops around particular popular culture series or formats, such as films, television shows, characters,…

Risk Contingency Jonathan Poland

Risk Contingency

A risk contingency plan is a course of action that is put in place to mitigate the negative consequences of…

Accountability Jonathan Poland

Accountability

Accountability refers to the responsibility of an organization or individual to provide explanations for their actions and accept responsibility for…

Executive Hiring Jonathan Poland

Executive Hiring

Hire 1 to hire 10. Never hire individual team members, always focus on making a single hiring of a manager…