In: Operations Management
Alderfer’s ERG theory is a human motivation theory which stresses on three group of needs, namely, existence, relatedness & growth needs. These needs form a hierarchy & with change in circumstances the position of these needs changes in the hierarchy. The theory was developed by an American psychologist, Clayton Paul Alderfer. According to him existence needs are followed by relatedness needs & then, growth needs. However, priority of needs differs from individual to individual. The three groups of needs are explained below:
a) Existence needs: These needs include the need for physical well being, i.e., the basic human survival needs. For example: food, clothing, shelter. These needs are the basic physical & security needs that helps a human body to function properly. These needs motivate employees to work. An employee will be motivated to work only when his/her physiological needs like food, clothing, shelter are fulfilled. Physical as well as economic security motivates an employee to work. Fulfillment of such needs is important to motivate an employee to work.
b) Relatedness needs: This set of needs is concerned with the human desire to establish & maintain interpersonal & social relationships with friends, family, colleagues, superiors, etc. Individuals aims at building satisfactory relationships with others. A good working environment is the one that helps an employee to build good relationship with others.
c) Growth needs: These needs focuses on the desire to make growth & personal development. An individual aims at fulfilling his/her desire to be creative, productive, etc. An individual feels highly motivated with the outcome of his /her efforts. These outcomes can be goal actualization, feeling of achievement, etc. These factors helps an employee to work happily.
These human needs influence an individual's motivation to work. Fulfillment of physiological & security needs like food, clothing, etc. enables an individual to work. An individual will be motivated to work when his basic needs are fulfilled. In a good working environment where an individual shares a close relationship with colleagues, superiors & subordinates, he/she will feel motivated to work. Satisfaction of such needs will reduce employee turnover. There will be no conflicts & there will be a feeling of relatedness. Lastly, a feeling of achievement or goal actualization motivates an employee to become even more innovative & productive & contribute as much as possible towards the personal growth & towards the growth of the organization. So, human needs have a major influence on an individual's motivation to work.