Clayton Alderfer's ERG theory of motivation condenses Maslow's hierarchy into three core categories: existence, relatedness, and growth, which may be pursued simultaneously. The theory emphasizes that when higher-level needs are hindered, individuals may regress to lower-level needs for fulfillment, impacting motivation and behavior. Organizations can leverage this understanding to enhance employee motivation, improve retention, increase productivity, and foster a stronger organizational culture.

1. GROUP 2
ANDRES, JAYSON P.
ASUNCION, CRISEL MAE T.
ULEP, GINA E.

2. GROUP 2
VERVIEW Summary
Developer
introduction
3 groups
of needs
Existence Relatedness Growth
The Frustrstion-
Regression Principle
ERG Theory Impact on
human behavior
Effect on
organizational
performance
Thank You
Conclusion
01

3. Clayton Alderfer
•Was an American
Psychologist who was born in
Sellersville, Pennsylvania on
September 1, 1940.
• He is known for his ERG
Theory of motivation.
• The theory was a follow-up of
Abraham's 5 stages hierarchy of
needs theory.
DEVELOPER
INTRODUCTION
02

4. Alderfer’s ERG Theory
Theory of motivation
Clayton Alderfer's ERG Theory, developed in
the 1960s, is a modification of Maslow's
Hierarchy of Needs. It simplifies Maslow's five
levels into three core categories: Existence,
Relatedness, and Growth. The theory
proposes that these needs can be active
simultaneously and their relative importance
can fluctuate depending on individual
circumstances and experiences.
UMMARY
OF
ALDERFER'S
ERG
THEORY
03

5. Alderfer's ERG Theory suggests that there are
three groups of needs:
GROUPS
OF
NEED
04
Existence
Relatedness
Growth

6. This group of needs is concerned with providing the
basic requirements for material existence, such as
physiological and safety needs.
EXISTENCE
05
Existence refers to our basic survival needs as
humans (food and water, shelter, good health, and
feeling safe).

7. This group of needs focuses on the desire to
establish and maintain interpersonal relationships
with family, friends, co-workers, and employers.
RELATEDNESS
06
Relatedness refers to our need to relate to other
people, therefore to social and external esteem.

8. These needs are about the fulfillment of desires to be
creative, and productive, and to complete meaningful
tasks.
GROWTH
07
These needs are all about personal development. In
a work context a person's, career, or profession can
provide significant satisfaction with growth needs

9. ERG
THEORY
08

10. A key principle of ERG Theory is the
Frustration-Regression Principle. This
principle states that when an
individual's attempts to satisfy a higher-
level need are blocked or frustrated,
they may regress to focusing on lower-
level needs to achieve satisfaction.
THE
FRUSTRATION-REGRESSIO
PRINCIPLE
09

11. IMPACT
ON
HUMAN
BEHAVIOR
10
• EXISTENCE NEEDS
• RELATEDNESS NEEDS
• GROWTH NEEDS
ERG Theory suggests that individuals are motivated by
different needs at different times, and that these needs can
be pursued simultaneously. This dynamic approach
acknowledges the complexity of human motivation and
allows for more individual variation in how people prioritize
their needs.

12. ECT
ON
ORGANIZATION
PERFORMANCE
11
By understanding and addressing the
needs outlined in ERG Theory,
organizations can improve employee
motivation and enhance overall
performance.
Effect of ERG Theory on
Organizational Performance
• INCREASED PRODUCTIVITY
• IMPROVED EMPLOYEE RETENTION
• ENHANCED INNOVATION AND CREATIVITY
• STRONGER ORGANIZATIONAL CULTURE

13. INCREASED
PRODUCTIVITY
12
Increased Productivity:
Motivated employees are
more likely to be
engaged in their work,
leading to increased
productivity and
efficiency.

14. IMPROVED
EMPLOYEE
RETENTION
13
Improved Employee
Retention- When employees
feel valued and their needs
are met, they are less likely
to seek employment
elsewhere, reducing
turnover costs and
improving organizational
stability.

15. Enhanced Innovation and
Creativity: A work
environment that
encourages growth and
development fosters
innovation and creativity,
leading to new ideas and
solutions.
ENHANCED
INNOVATION
AND
CREATIVITY
14

16. STRONGER
ORGANIZATIONAL
CULTURE
1
5
Stronger Organizational
Culture: A culture that
prioritizes employee needs
and well-being creates a
positive and supportive work
environment, strengthening
organizational culture and
fostering a sense of
belonging.

17. These real-world examples demonstrate how
organizations are applying ERG Theory
principles to create a more motivating and
fulfilling work environment. By addressing
employee needs at all levels, organizations can
foster greater engagement, productivity, and
job satisfaction, leading to improved
organizational performance.
CONCLUSION
16

18. THANK
YOU
BY: GROUP 2

19. ANY QUESTIONS?