ERG Theory

To bring Maslows need hierarchy theory of motivation in synchronization with empirical research, Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He recategorized Maslows hierarchy of needs into three simpler and broader classes of needs:

Existence needs- These include need for basic material necessities. In short, it includes an individuals physiological and physical safety needs. Relatedness needs- These include the aspiration individuals have for maintaining significant interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition. Maslows social needs and external component of esteem needs fall under this class of need. Growth needs- These include need for self-development and personal growth and advancement. Maslows self-actualization needs and intrinsic component of esteem needs fall under this category of need.

The significance of the three classes of needs may vary for each individual.

Difference between Maslow Need Hierarchy Theory and Alderfers ERG Theory

ERG Theory states that at a given point of time, more than one need may be operational.

ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is an increase in desire for satisfying a lower-level need.

According to Maslow, an individual remains at a particular need level until that need is satisfied. While according to ERG theory, if a higher- level need aggravates, an individual may revert to increase the satisfaction of a lowerlevel need. This is called frustration- regression aspect of ERG theory. For instance- when growth need aggravates, then an individual might be motivated to accomplish the relatedness need and if there are issues in accomplishing relatedness needs, then he might be motivated by the existence needs. Thus, frustration/aggravation can result in regression to a lower-level need.

While Maslows need hierarchy theory is rigid as it assumes that the needs follow a specific and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed to the higher-level need; ERG Theory of motivation is very flexible as he perceived the needs as a range/variety rather than perceiving them as a hierarchy. According to Alderfer, an individual can work on growth needs even if his existence or relatedness needs remain unsatisfied. Thus, he gives explanation to the issue of starving artist who can struggle for growth

even if he is hungry.

Implications of the ERG Theory

Managers must understand that an employee has various needs that must be satisfied at the same time. According to the ERG theory, if the manager concentrates solely on one need at a time, this will not effectively motivate the employee. Also, the frustration- regression aspect of ERG Theory has an added effect on workplace motivation. For instance- if an employee is not provided with growth and advancement opportunities in an organization, he might revert to the relatedness need such as socializing needs and to meet those socializing needs, if the environment or circumstances do not permit, he might revert to the need for money to fulfill those socializing needs. The sooner the manager realizes and discovers this, the more immediate steps they will take to fulfill those needs which are frustrated until such time that the employee can again pursue growth. Victor Vroom

Victor Vroom's "Expectancy Theory" is based on the thoughts of everyday workers. . . According to Vroom to motivate someoe mere offering a person something to satisfy his important needs will nt be sufficient. In order for the person to be motivated, he must also be reasonably sure that he has the ability to obtain the reward. An employee's motivation increases when he values a particular outcome highly and when he feels a reasonably good chance of achieving the desired goal. This definition says that : Any individual acts in a way to reach a maximal effect with a minimal effort. . Stated in other words workers motivation will be high when they believe that high levels of effort will lead to high performance and high performance will lead to the attainment of desired outcomes. Further, according to the theory, a man's motivation is determined by three influencing factors. Expectancy - As already explained a persons level of expectancy determines whether he or she believes that a high level of effort will result in a high level of performance. Expectancy is, thus, the belief that efforts are linked to performance. . Instrumentality - A persons perception about the extent to which performance at a certain level will result in the attainment of outcomes. There should be firm conviction within the employee that high performance will lead to desirable outcomes. Instrumentality is, in short, the belief that performance is related to rewards. . Valence - The importance placed upon the reward. It refers to how desirable each of the out comes available from a job or organization is to a person. This is becase according to the theory people may differ in the preferences for outcomes. . High motivation therefore results from high levels of expectancy, instrumentality, and valence. If any one factor is low, motivation will be low. . Managers should strive to ensure that employees levels of expectancy,

instrumentality, and valence are high so that they will be highly motivated.

Maslows Theory

Self-actualization is the summit of Maslow's motivation theory. It is about the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow. Self-actualized people tend to have motivators such as:
Truth Justice Wisdom Meaning

Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Esteem Needs
After a person feels that they "belong", the urge to attain a degree of importance emerges. Esteem needs can be categorized as external motivators and internal motivators.

Internally motivating esteem needs are those such as self-esteem, accomplishment, and self respect. External esteem needs are those such as reputation and recognition. Some examples of esteem needs are:
Recognition (external motivator) Attention (external motivator) Social Status (external motivator) Accomplishment (internal motivator) Self-respect (internal motivator)

Maslow later improved his model to add a layer in between self-actualization and esteem needs: the need for aesthetics and knowledge.

Social Needs
Once a person has met the lower level physiological and safety needs, higher level motivators awaken. The first level of higher level needs are social needs. Social needs are those related to interaction with others and may include:
Friendship Belonging to a group Giving and receiving love

Safety Needs
Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by:
Living in a safe area Medical insurance Job security Financial reserves

According to the Maslow hierarchy, if a person feels threatened, needs further up the pyramid will not receive attention until that need has been resolved.

Physiological Needs
Physiological needs are those required to sustain life, such as:
Air Water Food Sleep

According to this theory, if these fundamental needs are not satisfied then one will surely be motivated to satisfy them. Higher needs such as social needs and esteem are not recognized until one satisfies the needs basic to existence.

Applying Maslow's Needs Hierarchy - Business Management Implications

If Maslow's theory is true, there are some very important leadership implications to enhance workplace motivation. There are staff motivation opportunities by motivating each employee through their style of management, compensation plans, role definition, and company activities.
Physiological Motivation: Provide ample breaks for lunch and recuperation and pay salaries that allow workers to buy life's essentials. Safety Needs: Provide a working environment which is safe, relative job security, and freedom from threats. Social Needs: Generate a feeling of acceptance, belonging, and community by reinforcing team dynamics. Esteem Motivators: Recognize achievements, assign important projects, and provide status to make employees feel valued and appreciated. Self-Actualization: Offer challenging and meaningful work assignments which enable innovation, creativity, and progress according to long-term goals.

Herzberg theory- 2 factors

Two-factor theory distinguishes between:

Motivators (e.g., challenging work, recognition, responsibility) that give positive satisfaction, arising from intrinsic conditions of the job itself, such as recognition, achievement, or personal growth[2], and Hygiene factors (e.g. status, job security, salary and fringe benefits) that do not give positive satisfaction, though dissatisfaction results from their absence. These are extrinsic to the work itself, and include aspects such as company policies, supervisory practices, or wages/salary Essentially, hygiene factors are needed to ensure an employee is not dissatisfied. Motivation factors are needed to motivate an employee to higher performance, Herzberg also further classified our actions and how and why we do them, for example, if you perform a work related action because you have to then that is classed as movement, but if you perform a work related action because you want to then that is classed as motivation. Unlike Maslow, who offered little data to support his ideas, Herzberg and others have presented considerable empirical evidence to confirm the motivation-hygiene theory, although their work has been criticized on methodological grounds.

Implications for management

If the motivation-hygiene theory holds, management not only must provide hygiene factors to avoid employee dissatisfaction, but also must provide factors intrinsic to the work itself for employees to be satisfied with their jobs. Herzberg argued that job enrichment is required for intrinsic motivation, and that it is a continuous management process. According to Herzberg:

The job should have sufficient challenge to utilize the full ability of the employee. Employees who demonstrate increasing levels of ability should be given increasing levels of responsibility. If a job cannot be designed to use an employee's full abilities, then the firm should consider automating the task or replacing the employee with one who has a lower level of skill. If a person cannot be fully utilized, then there will be a motivation problem.

Critics of Herzberg's theory argue that the two-factor result is observed because it is natural for people to take credit for satisfaction and to blame dissatisfaction on external factors. Furthermore, job satisfaction does not necessarily imply a high level of motivation or productivity.