ALDERFERS ERG

MODEL
CAROLINE SIBU CHEERAN (1620344)

S G A N A S H R E E G OW DA ( 1 6 2 0 3 8 3 )
P R E M P R AV E E N O S WA L ( 1 6 2 0 3 2 5 )

MOHAMMAD QASIM (1620321)

3 CORE NEEDS OF ERG MODEL

Existence needs The need for basic material existence, like psychological health and safety.
Relatedness needs The need for interpersonal connections, social status and recognition.
Growth needs The need for personal development, including creative and meaningful work.

RELATIONSHIPS BETWEEN ALDERFERS ERG

THEORY CONCEPTS

SatisfactionProgression

Moving up to higherlevel needs based on

satisfied needs.
Individuals move up
the need hierarchy as
a result of satisfying
lower order needs.

FrustrationRegression

If a higher level need

remains unfulfilled, a
person may regress to
lower level needs that
appear easier to satisfy.
Frustration-regression
suggests that an already
satisfied need can
become active when a
higher need cannot be
satisfied.

SatisfactionStrengthening

Iteratively strengthening
a current level of
satisfied needs.
Satisfactionstrengthening indicates
that an already satisfied
need can maintain
satisfaction or
strengthen lower level
needs iteratively when it
fails to gratify high-level
needs.

RESEARCH PAPER ANALYSIS

Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory
OBJECTIVE
The study investigates the influence of

need satisfaction on self-esteem

the influence of self-esteem on performance intention of top managers and frontline employees.
The empirical results show that esteem as a personality variable exerts a significant influence on the job
performance of both top managers and frontline employees.
These and other findings provide important guidelines for managers on how to address the motivational
needs of top managers and frontline employees in order to improve their job performance.
EMPIRICAL CONCLUSION

The empirical results revealed that top managers are primarily motivated by growth needs, in other
words, higher-order needs. This means that a challenging working environment that provides
opportunities for creativity, self-fulfilment, advancement and autonomy is a key motivator of the job
performance of top managers.
The results show that frontline employees are primarily motivated by the satisfaction of relatedness
needs from peers and existence needs and particularly monetary compensation. Relatedness from
peers need satisfaction is a direct motivator, as well as an indirect motivator via its effect on employee
self-esteem.

CASE STUDY
THE PROBLEM

APPLICATION OF ERG THEORY

John has a family of 4 members ,but

there an entry of a new member.
He needs larger house ,larger vehicle
and moreover larger income.
As he needs more income his post at
his work is not enough. His manager
does not want to loose a good
employee like him.
John needs to decide how much of a
higher income is necessary to meet
his needs, and how he plans on
fulfilling that need.

. Johns case exemplifies one of the

exceptions to Alderfers notion of
frustration-regression--when
existence needs are blocked, the
more intense this need becomes
Because John has the demanding
responsibility to support his growing
family, he needs to find a new position
that will allow him more income to
provide food, water, and shelter.
That is, before John fulfills his
relatedness need, he must first
resolve the obligation of providing
existence needs.
Even if his supervisor assesses Johns
needs and provides him with
opportunities for social relationships,
John will still experience frustration
until existence needs are met.
That said, John will make the decision
to find a position in another company
that will provide him with the income
necessary to support the expense of
his growing family.

CONCLUSION
When Johns job is compared to the
E-R-G theory, similar conflicts are
presented as in the Maslow theory.
Johns growth will be the most
indecisive as the stresses of two
children, a future child, a dead-end
job, and the reality of having no
financial/positional promotion
opportunities will regress his growth
back to relatedness needs.
Many people usually start taking
their problems out with someone in
hopes that they can lend advice or
support.
John will eventually regress from
relatedness to existence as he
realizes that his job is not providing
him with the opportunity to satisfy
the needs of his family.
Therefore, there will be no
progression and little satisfaction
between John and his job.