Alderfer –ERG Theory

Introduction 

Alderfer’s ERG Theory is an amendment of the Maslow’s hierarchy by decreasing quantity of need types. Alderfer originated simply three levels of needs (Wiley, 2008). The ERG theory tried to improve upon Maslow's needs hierarchy by allowing more flexibility of movement between needs (Caulton, 2012).          

According to (Redmond, 2010), Needs were separated into three separate categories

 

                                                            Figure 03: ERG Theory model

                                                               (Source - Redmond 2010)

1. Existence Needs

Include all material and physiological desires. As a example food, water, air, clothing, safety, physical love and affection (Caulton, 2012).

2. Relatedness Needs

Social relationships and external esteem, relationships with others like family, friends, co-workers and employers. This also means to be recognized and feel secure as part of a group or family (Caulton, 2012).

3. Growth Needs

Internal esteem and self-actualization; these impel a person to make creative or productive effects on himself and the environment (Caulton, 2012).

 Difference between Maslow’s theory and Alderfer's ERG Theory

The main difference between Maslow’s hierarchy of needs and ERG theory is Maslow’s hierarchy of needs says the needs are met specific order. But ERG theory states met simultaneously and no specific order. The ERG Theory describes that there are variables that can affect the needs of an individual on any day or any stage (O’Connor & Yballe, 2007).

Table 02: Comparison of Maslow’s hierarchy of needs and Alderfer's ERG Theory.

Maslow’s five-level hierarchy of needs	Alderfer's three category ERG model of needs
Self-actualization needs	Growth needs
Esteem needs
Belongingness and love need	Relatedness needs
Safety and security needs
Physiological needs	Existence needs

                                                 Source - (Kim et al., 2015)

Application of Alderfer's ERG Theory to Construction Industry

According to (Kim et al., 2015), Safe working conditions is the most important physiological factor in construction industry. In relatedness needs, Relationship with colleagues and relationship with managers are not the most important factors affect to the construction workers. But in some countries like Philippine, Vietnamese relatively factor is higher importance than workers from other countries. In construction industry, high probability that the employees can regress to lower level Existence needs and satisfy through only salary and other benefits. Construction workers considered timely payment is more important than amount of pay. About the growth need the work force of the construction industry not considered about that. But professionals who were work in the industry mostly considered about growth need compare to the workforce (Kim et al., 2015. As a construction organization it is very important to balanced and focused on fulfillment of these three needs.

References

Caulton, J. (2012) ‘The development and use of the theory of erg: A literature review’, Emerging Leadership Journeys, 5(1), pp. 2–8.

Kim, S. et al. (2015) ‘Cultural differences in motivation factors influencing the management of foreign laborers in the Korean construction industry’, International Journal of Project Management, 33(7), pp. 1534–1547. doi: 10.1016/j.ijproman.2015.05.002.

O'Connor, D., & Yballe, L.. (2007). Maslow Revisited: Construction a Road Map of Human Nature. Journal of Management Education, 31(6), 738-756. Retrieved January 21, 2010, from ABI/INFORM Global. (Document ID: 1392302941).

Redmond, B.F. (2010). Need Theories: What Do I Want When I Work? Work Attitudes and Motivation. The Pennsylvania State University World Campus.

Wiley, C. (2008) ‘What motivates employees according to over 40 years of survey’.