Alderfer's ERG Theory
Monday, November 25, 2013
What do people need?
Well, it depends on the circumstances.
If you're living in poverty in a famine area, your most important need is food. On the other hand, if you're living in physical comfort but are isolated from people you know, your top priority will be gaining access to friends or family.
So people have needs depending on their circumstances. This is the basis for Maslow's Hierarchy of Needs , one of the best-known theories of motivation. It argues that there are five levels of need, and that these are hierarchical, such that lower level needs must be satisfied before higher ones. Maslow's five levels of need (starting with the lowest) are: physiological, safety, social, self-esteem and self-actualization.
While it's a useful starting point, Maslow's theory doesn't fully reflect the true complexity of human motivation. Using the Hierarchy of Needs, our physiological need for food would have to be met before we felt the need for social relationships. In reality, these needs are usually not as independent as that: You can be hungry for love and food at the same time. Likewise, you can experience a need to belong (social) at the same time you are looking for challenging work (esteem).
Alderfer's ERG Theory
The psychologist Clayton Alderfer developed a new model to explain the simultaneous nature of Maslow's five needs. Called the ERG Theory of motivation, he first published it in a 1969 article titled "An Empirical Test of a New Theory of Human Need."
In his theory, Alderfer compressed Maslow's hierarchy of needs from five to three:
Existence
Relatedness
Growth
(Hence "ERG", standing for Existence, Relatedness and Growth.)
At the most basic level, people have existence needs. These map to Maslow's physiological and safety needs, as shown in Figure 1
below.
Next, we experience relatedness needs, where we fulfill our need for satisfying interpersonal relationships. This level relates to Maslow's social needs and to the external part of self-esteem needs – we feel good about ourselves based on what others think about us.
Finally, we reach the growth needs level. Here, we are looking for personal growth and development by doing work that is of high quality, and meaningful. This equates to the internal part of Maslow's self-esteem needs and to his self-actualization needs.
However, Alderfer's theory goes further than simplifying the number of needs and broadening what each covers. While he still maintains that there is a general order for pursuing needs, he claims that this order is not as fixed as it is in Maslow's hierarchy. Even though existence needs generally have a higher priority than relatedness and growth needs, priorities can change, depending on the person and the situation.
ERG theory has three key differences from Maslow's theory:
It suggests that people can be motivated by needs from more than one level at the same time. There is not necessarily a strict progression from one level to the next.
It acknowledges that the importance of the needs varies for each person and as circumstances change. Some people might put a higher value on growth than relationships at certain stages of their lives.
It has a "frustration-regression" element. This means that that if needs remain unsatisfied at one of the higher levels, the person will become frustrated, and go back to pursuing lower level needs again.
Using the Theory
The flexibility of ERG Theory makes it very practical. It tells us that leaders can't concentrate on satisfying just one type of need for any individual. Motivating factors within a work environment have to be very personal, and address a variety of need levels. Overall, organizations have to provide good working conditions (existence needs) as well as encouraging positive working relationships (relationship needs), and providing growth opportunities (growth needs).
It also suggests that changes in people's personal circumstances will mean that their work priorities change. Things like a birth or death in the family, marriage or divorce, job transfer, promotion, or health issues will bring about shifts in a person's needs and motivations.
Someone who is satisfied with their work and relationships will probably be focused on personal growth and development. But if that person is suddenly facing divorce, his or her needs shift, and existence needs take precedence. Of course, this doesn't mean that he or she abandons the need for relatedness or growth altogether. But short- and medium-term priorities shift, and the person's energy will be largely devoted to the need to secure the future for himself or herself, and for any children involved.
There are also some people who simply don't fit the hierarchical mold. The pursuit of personal satisfaction (growth) over existence can be seen in those who pursue a vocation, such as a religious life, or choose to live in poverty so that they can work as artists. This path is acknowledged within the ERG model, because it allows for people who don't follow the sequential path through existence, relatedness and growth, but are motivated almost entirely by their growth needs.
McGregor's Theory X and Theory Y fits well with ERG Theory too. Theory Y people typically want to move up the needs hierarchy and are therefore internally motivated to pursue personal growth and development. Theory X people, on the other hand, aren't internally motivated and look for "carrot and stick" type motivators. It can be very frustrating to manage a Theory X person, however, if you use ERG Theory as a guide, you will probably be more attuned to the level of need from which your co-worker is operating. As a leader you have to figure what it is that motivates your people and provide opportunities for them to be satisfied.
Finally, the "frustration-regression" element has interesting applications for workplace motivation. If your workplace doesn't offer sufficient opportunity or challenge to satisfy your team members' growth needs, they will become frustrated. They will
start looking to satisfy lower level needs to make up for this frustration. This may mean they regress down to relatedness needs, and look for flexible work conditions that allow them more time for leisure. Or they may put a new priority on existence needs, and start demanding higher pay, better benefits, or a pension plan.
As a leader you need to be aware of this tradeoff factor. If you are not prepared or able to satisfy higher level needs, then your strategy for staff attraction, retention, and motivation should probably focus on lower level needs.
Because workplace motivation is so strongly tied to performance, managers need to be sensitive to the variations in their team members' needs if they are to be effective. It is not enough to think you know what motivates your staff; you have to really find out. This means engaging them in frequent, supportive, and personal conversations where you talk about their career and life goals and any recent changes they are experiencing. These conversations will give you insight into their needs. Your challenge then is to figure out what you can do to satisfy them.
Key Points
ERG Theory brings up some interesting workplace motivation dynamics. It allows us to appreciate the complexity involved in trying to figure out how best to motivate people. While there are different levels of need (as with Maslow's hierarchy), the priority people place on these needs is constantly changing and as varied as people themselves. If you remember that not everyone is motivated by the same things, you will be well placed to figure out what incentives and opportunities to provide to the people you work with.
Apply This to Your Life
Think about the need levels you are currently operating from. Are your needs being sufficiently addressed through your current work? What steps can you take to ensure that your needs continue to be met?
If you have people reporting to you, where do you think they place their priorities right now? What behavior have you observed that supports your assumption? Confirm your assumptions regularly by asking them what is going on in their lives. Engage them in conversations about what they need and how well their needs are being met at work.
Pay attention to the frustration-regression element at your workplace. Periodically survey the growth, relatedness, and existence opportunities you provide and make sure they are well matched to the typical need pattern of your staff. Make changes where necessary.
Tags:
Skills, Team Management
Well, it depends on the circumstances.
If you're living in poverty in a famine area, your most important need is food. On the other hand, if you're living in physical comfort but are isolated from people you know, your top priority will be gaining access to friends or family.
So people have needs depending on their circumstances. This is the basis for Maslow's Hierarchy of Needs , one of the best-known theories of motivation. It argues that there are five levels of need, and that these are hierarchical, such that lower level needs must be satisfied before higher ones. Maslow's five levels of need (starting with the lowest) are: physiological, safety, social, self-esteem and self-actualization.
While it's a useful starting point, Maslow's theory doesn't fully reflect the true complexity of human motivation. Using the Hierarchy of Needs, our physiological need for food would have to be met before we felt the need for social relationships. In reality, these needs are usually not as independent as that: You can be hungry for love and food at the same time. Likewise, you can experience a need to belong (social) at the same time you are looking for challenging work (esteem).
Alderfer's ERG Theory
The psychologist Clayton Alderfer developed a new model to explain the simultaneous nature of Maslow's five needs. Called the ERG Theory of motivation, he first published it in a 1969 article titled "An Empirical Test of a New Theory of Human Need."
In his theory, Alderfer compressed Maslow's hierarchy of needs from five to three:
Existence
Relatedness
Growth
(Hence "ERG", standing for Existence, Relatedness and Growth.)
At the most basic level, people have existence needs. These map to Maslow's physiological and safety needs, as shown in Figure 1
below.
Next, we experience relatedness needs, where we fulfill our need for satisfying interpersonal relationships. This level relates to Maslow's social needs and to the external part of self-esteem needs – we feel good about ourselves based on what others think about us.
Finally, we reach the growth needs level. Here, we are looking for personal growth and development by doing work that is of high quality, and meaningful. This equates to the internal part of Maslow's self-esteem needs and to his self-actualization needs.
However, Alderfer's theory goes further than simplifying the number of needs and broadening what each covers. While he still maintains that there is a general order for pursuing needs, he claims that this order is not as fixed as it is in Maslow's hierarchy. Even though existence needs generally have a higher priority than relatedness and growth needs, priorities can change, depending on the person and the situation.
ERG theory has three key differences from Maslow's theory:
It suggests that people can be motivated by needs from more than one level at the same time. There is not necessarily a strict progression from one level to the next.
It acknowledges that the importance of the needs varies for each person and as circumstances change. Some people might put a higher value on growth than relationships at certain stages of their lives.
It has a "frustration-regression" element. This means that that if needs remain unsatisfied at one of the higher levels, the person will become frustrated, and go back to pursuing lower level needs again.
Using the Theory
The flexibility of ERG Theory makes it very practical. It tells us that leaders can't concentrate on satisfying just one type of need for any individual. Motivating factors within a work environment have to be very personal, and address a variety of need levels. Overall, organizations have to provide good working conditions (existence needs) as well as encouraging positive working relationships (relationship needs), and providing growth opportunities (growth needs).
It also suggests that changes in people's personal circumstances will mean that their work priorities change. Things like a birth or death in the family, marriage or divorce, job transfer, promotion, or health issues will bring about shifts in a person's needs and motivations.
Someone who is satisfied with their work and relationships will probably be focused on personal growth and development. But if that person is suddenly facing divorce, his or her needs shift, and existence needs take precedence. Of course, this doesn't mean that he or she abandons the need for relatedness or growth altogether. But short- and medium-term priorities shift, and the person's energy will be largely devoted to the need to secure the future for himself or herself, and for any children involved.
There are also some people who simply don't fit the hierarchical mold. The pursuit of personal satisfaction (growth) over existence can be seen in those who pursue a vocation, such as a religious life, or choose to live in poverty so that they can work as artists. This path is acknowledged within the ERG model, because it allows for people who don't follow the sequential path through existence, relatedness and growth, but are motivated almost entirely by their growth needs.
McGregor's Theory X and Theory Y fits well with ERG Theory too. Theory Y people typically want to move up the needs hierarchy and are therefore internally motivated to pursue personal growth and development. Theory X people, on the other hand, aren't internally motivated and look for "carrot and stick" type motivators. It can be very frustrating to manage a Theory X person, however, if you use ERG Theory as a guide, you will probably be more attuned to the level of need from which your co-worker is operating. As a leader you have to figure what it is that motivates your people and provide opportunities for them to be satisfied.
Finally, the "frustration-regression" element has interesting applications for workplace motivation. If your workplace doesn't offer sufficient opportunity or challenge to satisfy your team members' growth needs, they will become frustrated. They will
start looking to satisfy lower level needs to make up for this frustration. This may mean they regress down to relatedness needs, and look for flexible work conditions that allow them more time for leisure. Or they may put a new priority on existence needs, and start demanding higher pay, better benefits, or a pension plan.
As a leader you need to be aware of this tradeoff factor. If you are not prepared or able to satisfy higher level needs, then your strategy for staff attraction, retention, and motivation should probably focus on lower level needs.
Because workplace motivation is so strongly tied to performance, managers need to be sensitive to the variations in their team members' needs if they are to be effective. It is not enough to think you know what motivates your staff; you have to really find out. This means engaging them in frequent, supportive, and personal conversations where you talk about their career and life goals and any recent changes they are experiencing. These conversations will give you insight into their needs. Your challenge then is to figure out what you can do to satisfy them.
Key Points
ERG Theory brings up some interesting workplace motivation dynamics. It allows us to appreciate the complexity involved in trying to figure out how best to motivate people. While there are different levels of need (as with Maslow's hierarchy), the priority people place on these needs is constantly changing and as varied as people themselves. If you remember that not everyone is motivated by the same things, you will be well placed to figure out what incentives and opportunities to provide to the people you work with.
Apply This to Your Life
Think about the need levels you are currently operating from. Are your needs being sufficiently addressed through your current work? What steps can you take to ensure that your needs continue to be met?
If you have people reporting to you, where do you think they place their priorities right now? What behavior have you observed that supports your assumption? Confirm your assumptions regularly by asking them what is going on in their lives. Engage them in conversations about what they need and how well their needs are being met at work.
Pay attention to the frustration-regression element at your workplace. Periodically survey the growth, relatedness, and existence opportunities you provide and make sure they are well matched to the typical need pattern of your staff. Make changes where necessary.
