Alderfer's – ERG Theory
Clayton P. Alderfer’s ERG theory of motivation is a motivational theory (Wilson, 2012). Existence, relatedness, and progress are the three categories of wants that Alderfer identified (Furnham, 2008).
Even if the conditions
for existence and relatedness are not met, the employee can still strive toward
level growth, or all three groups of demands can be met at once (Yang et al.,
2011).
Maslow's five need levels
were reorganized by Alderfer into three more universal need levels (Sahito
& Vaisanen, 2017).
1. Existence Needs : This group of needs is concerned with providing the basic requirements or needs for material existence, like physiological and safety needs (Furnham, 2008).
2. Relatedness Needs : This need focuses on the desire to establish and maintain interpersonal relationships with family, friends, co-workers, and employees, and this includes the need to interact with other people, receive public recognition, and feel secure around other people (Furnham, 2008).
According to Schein
(2010), 'the relatedness constituted the company's culture and a
pattern of shared fundamental presumptions that the organization learnt as it
addressed the issues of outward adaptation and internal integration.' Corporate social responsibility, or CSR, is an excellent illustration of
relatedness and has become crucial for building a company's goodwill and image
(Walker & Dyck, 2014).
3. Growth Needs: These
comprise the need for individual improvement, development, and advancement. (Furnham,
2008)
The organization's
current mode of functioning is that of a spiritually aware organization (Pandy
& Gupta, 2008). The growth is apparent in the organizational setting
through innovation, improved learning, development, and creativity (Arjoon,
Hoyos, T & Thoene, 2018). According to Sharma and Talwar (2007), ‘the
growth focusses on the universal well-being of the organization" and is
"multi-dimensional, aiming for the accomplishment of excellence more
than profits.’
Figure
1.0 – Alderfer’s ERG Theory
The figure
1.0 illustrates below about the relationship between existence, relatedness, and
growth needs as per Alderfer’s ERG theory.
The Alderfer's model has
greater flexibility in portraying human interpersonal behavior since it is less
rigid (Anyim, Chidi & Badejo, 2012).
In contrast to Maslow's
theory of the hierarchy of requirements, the ERG theory does not presuppose
that higher-order wants must be pursued before lower order needs are satisfied
(Robbins & Judge, 2008). Since most human wants are adequately met by
Alderfer's theory (Au, N, 2008).
Implications of Alderfer’s
ERG Theory in Practice
I work in a diversified
conglomerate organization that operates in diverse industry sectors like travel and tourism, hospitality, plantation, maritime and logistics and garments.
In the organization, most
of the employees are in frustrated situations (anger, sleeping, using alcohol,
feeling annoyed, etc.) due to not being able to fulfill the existence, relatedness, and growth
needs at the same time.
E.g: - The organization
has no comfortable working environment, expected rewards (considerable salary), and not provided any rest time to reduce employee stress. Most of the
employees are working under pressure. Furthermore employees are unable to balance work and personal life due to not have enough time to meet family obligations. The organization
has not conducted adequate training and development programs and has not
recognized experienced employees in the organization. This has led to high staff
turnover due to employee demotivation.
The organization higher management should adopt various methods to retain employee motivation and fulfill it's needs, as follows:
- Build work environment where an employee can feel at home – Rest time should be given.
- Check the employees are working isolated from others – get all employees to the group
- Appreciate and recognize the employees by identifying experienced employees
- Conduct training and development programs and develop employees' personal growth, and recognize and reward accordingly.
Video 1.1 – The way Microsoft
Company Motivate the Employees
The following video 1.1
illustrates the way of Microsoft company motivate the employees and reduce
the employees’ frustration.
(Source: Working at
Microsoft, 2018)
Further, in global context, for example, the agricultural community’s existence , relatedness and
growth needs could be extend by recruiting educated upwardly mobile talent
(Liu & Zhang, 2008).
Mulder
(2007), stated that 'in vocational school in the Netherlands, students seemed to
be trapped in a frustration-regression phase and suggested relatedness needs
were tied to students' existence needs'.
Esteem demands as a
personality trait exhibit a major impact on job performance and organizational
success, according to research conducted by top level executives and frontline
workers in a number of sectors in South Africa (Arnolds & Boshoff, 2002).
A study of teachers'
career choices in Rawalpindi, Pakistan, using content approach theories of
motivation, such as ERG, found that 90 teachers from 30 schools in the district
chose the profession due to job satisfaction, rewards, recognition, and the
need for growth and esteem was also a factor that emerged from this study (Ud
Din, Khan & Murtasa, 2011).
More growth requirements
will be sought as relatedness needs are met, and vice versa when growth needs
are satisfied (Young, Young & Scientist, 2021). Communication technology
has been developed using Alderfer's ERG idea (Yang, Hwang & Chen, 2011).
The workforce may not feel comfortable concentrating on the growth and
development of connections without developing workplace identity if they have
not yet created a dominant force in the workplace (Pratap, A, 2017).
References
✔. Arjoon, S, Hoyos, T & Thoene, U 2018, 'Virtuousness and the Common Good as a Conceptual Framework for Harmonizing Goals of the Individual, Organizations and Economy', Journal of Business Ethics, Vol. 147 (1), pp. 143 – 163
✔. Anyim, C, Chidi, O & Badejo, A 2012, 'Motivation and Employees’ Performance in the Public and Private Sectors in Nigeria', International Journal of Business Administration, Vol. 3(1), pp. 31-40.
✔. Adullah, N, Rahmat, H, Zawawi, F, Khamsh, N & Anuarsham, H 2020, 'Coping with Post Covid-19, Can Work from Home is a New Norm?', European Journal of School of Social Science Studies, Vol 5 (6), pp. 61-81
✔. Arnolds, A & Boshoff, C 2002, 'Compensation, Esteem valance and Job Performance: An Empirical Assessment of Alderfer’s ERG Theory', International Journal of Human Resource Management, Vol. 13 (4), 697 (23).
✔. Au, N 2008, 'Extending the understanding of end user information systems satisfaction formation: an equitable needs fulfillment model approach', pp. 43-66
✔. Liu, C & Zhang, Y 2008, 'On Brain Drain in New Countryside Construction - from the Perspective of ERG Theory', Journal of Jiangxi Agricultural University (Social Sciences Edition), 2008 -Vol. 01.
✔. Mulder, L 2007, 'Motivation Cycles. Boise State University'
✔. Pandy, A & Gupta, R 2008, 'A Perspective of Collective Consciousness of Business Organizations', Journal of Business Ethics, Vol. 80 (4), pp. 889 – 898.
✔. Pratap, A 2017, Alderfer’s ERG Theory of Needs.
✔. Robbins, S & Judge, T 2008, Organizational Behavior, New Jersey: Prentice-Hall Inc.
✔. Sahito, Z & Vaisanen, P 2017, 'The Diagonal model of Job Satisfaction and Motivation, Extracted from the Logical Comparison of Content and Process Theories', International Journal of Higher Education, Vol. 6 (3), pp. 209-230.
✔. Shein, E 2010, 'Organizational Culture & Leadership', San Francisco, CA: John Wiley and Sons.
✔. Sharma, A & Talwar, B 2007, 'Evolution of “Universal Business Excellence Model” Incorporating Vedic Philosophy', Measuring Business Excellence, Vol. 11 (3), pp. 4 -20
✔. Ud Din, M, Khan, F & Murtaza, A 2011, 'Exploring Motivational Factors in the Professional Development Career Choice of a Teacher', Interdisciplinary Journal of Contemporary Research in Business, Vol. 2(9), pp. 501-510.
✔. Wilson, B 201, 'Management Sumber Daya Manusia', Jakarta: Erlangga.
✔. Walker, K & Dyck, B 2014, 'The Primary Importance of Corporate Social Resonsibility and Ethicality in Corporate Reputation, An Empirical Study', Business & Society Review, Vol. 199 (1), pp. 147-174.
✔. Yang, C, Hwang, M & Chen, Y 2011, 'An Empirical Study of the Existence, Relatedness and Growth (ERG) Theory in Consumers Selection of Mobile Value-Added Services', African Journal of Business Management, Vol. 5(19), pp. 7885-7898
✔. Young, J, Young & Scientist, P 2021, 'Clayton Alderfer’s ERG Theory', Heroes of Employee Engagement.
great work Romeda,Positive discretionary behavior is used by highly motivated individuals when they choose to exert effort.Such individuals may be driven by their own actions, which is the ideal type of motivation as long as it indicates that they are moving in the right way to accomplish their goals (Armstrong, 2014)
ReplyDeleteThanks for the comment Farook. The achievement of one's own personal goals and corporate objectives are two key factors in employee motivation (Shanks, 2012). The most significant aspect determining people's economic life may be their identity, or their idea of who they are and who they choose to be and this is because people's identities serve as both a source of motivation and an indication of the best incentives for them to do well at work (Akerlof & Kranton, 2010).
DeleteThanks for the comment Kandeepan, Furthermore, understanding the activity's aim clearly is essential for motivation to be effective (Maklakov, 2010). Motivation is a process of controlling internal, psychological, and physiological action and it entails managing, planning, and controlling employee's behavior. Depending on the social and economic environment, the very complex phenomenon of motivation evolves in a variety of ways, and this actualizes the motivational dilemma and necessitates (Burtseva, 2002).
ReplyDeleteGreat article Romeda. According to this theory, the three hierarchies of needs in which more than one hierarchy of need can be operative simultaneously where as in Maslow's Hierarchy of Needs theory's five categories are arranged based on priority (Sharma & Kumar, 2018).
ReplyDeleteThanks for the comment Onita. The ERG theory does not assume that higher-order wants must be sought before lower-order needs are met, in contrast to Maslow's theory of the hierarchy of needs (Robbins & Judge, 2008). Since Alderfer's idea properly satisfies the majority of human desires (Au, N, 2008).
DeleteAgreed on the above content Romeda, Herzberg Hygiene Theory also known as “Two factor theory” is also used for employee motivation. This theory argues that there are separate sets of mutually exclusive factors in the workplace that either causes job satisfaction or dissatisfaction. The two factors namely Motivators which don’t dissatisfy if they do not exist but by giving value to these, will develop the satisfaction level of the employees (Bogardus, 2007). The other is Hygiene factors. These factors relate to the content of the work and if they are in proper form, it tends to eliminate job dissatisfaction (Haque,2014). The two-factor motivation theory is one of the most commonly used theoretical frameworks in job satisfaction research (Dion, 2006).
ReplyDeleteThanks for the comment Layanjalie. The next blog spot is already discussed about the Herzberg two factor theory. You can go through for the further information. In contrast to more proactive metrics like motivation levels, which are seen to be more strongly connected to behavioral change and performance, satisfaction may be seen as a passive quality (Hayday, 2003). The foundation of the two-factor theory is based on what makes a job satisfying for employees and Job satisfaction, is "the degree to which people prefer (satisfaction) or loathe (dissatisfaction) their occupations (Schroer, 2008). Contrary to absenteeism and turnover intents, it has been acknowledged to have a beneficial influence on organizational performance and workers' commitments (Yousef, 2000).
DeleteGood approach Romeda, according to Maslow’s Hierarchy of needs must be one of the best known motivation theories in the world. Maslow is a good starting point to start examining the different motivation theories. Maslow starts with the idea that people always tend to want something and what they want depends on what they already have. Maslow proposed that there are five different levels of needs people have to seek for satisfaction of their basic needs. (Mullins 2007, 258)
ReplyDeleteThanks for the comment Gamage. Further, the Maslow's hierarchy of needs have already discussed in next blog. Abraham Maslow is one of the pioneers of the modern study of human psychology and motivation (Mulwa, 2008). Maslow developed the theory of human needs, sometimes known as Maslow's hierarchy of needs in the context of the social environment (Santrock, 2001). According to Onah (2015), Abraham Maslow, a psychology professor at Brandeis University and a renowned expert in the study of human needs and motivation, developed his hierarchy of needs theory in 1943 and the theory suggests that people are motivated by five levels of needs, including physiological needs, safety needs, belonging needs, esteem needs, and needs for self-actualization.
DeleteHi Romeda, What an amazing post that was elegantly developed with a lot of valuable information.
ReplyDeleteMotivation theory can explain what makes people tick at work, but two other aspects of motivation's impact have to be considered: its relationship with job satisfaction and the effect of money on motivation(Armstrong, 2014).
Thank you so much for your valuable comment Bandara. An employee may carry out a task out of fear of punishment or termination, or the employee may carry out a task if it results in a promotion, bonus, or future growth (Ryan, 2000). Extrinsically motivated individuals, according to George and Jones (2012), work when they receive good feedback or reinforcement from others, and they are frequently driven by variables like the wage or a bonus, increase, or promotion.
DeleteGreat content Romeda. As you said Maslow outlined the five levels of basic requirements that comprise the hierarchy of human wants: physiological, safety, love, affection, and belonging, esteem, and self-actualization(Yang et al., 2011).Here is a more detailed explanation of the three demands in this: existence needs, relatedness needs, and growth needs(Yang et al., 2011).
ReplyDelete