ERG Theory (Alderfer): Existence – Relatedness – Growth
ERG theory emphasizes more on three broad needs that is existence, relatedness and growth. Its hypothesis is that there may be more than one need operating at the same time. ERG theory further states that when a higher level need is frustrating, the individual’s desire to increase lower level needs takes place. Thus ERG theory contains frustration-regression dimension. Frustration at higher level need may lead to regression at lower level need.
Advantages – More consistent with our knowledge of differences among people, it is less restrictive and limiting, it is a valid version of need hierarchy.
Disadvantages – No clear-cut guideline of individual behavior patterns, too early to pass a judgment on the overall validity of the theory.
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