ERG is a motivational framework aimed at determining
what factors affect human behavior. It's a content-based strategy that
addresses the underlying factors that lead to a person's behavior
There are three categories of basic requirements,
according to Alderfer's ERG theory: existence (E), relatedness (R), and
development (G), as denoted by the word ERG. Maslow's physiological, social,
and self-actualization needs are represented by these three groups
Existence needs : Our basic material necessities for survival are referred to as existence needs. Physiological needs (such as oxygen, food, drink, and shelter) and safety-related needs are among them, according to Maslow ( health, secure employment, and property).
Relatedness needs : The necessity of maintaining interpersonal ties are reflected in relatedness needs. These requirements are focused on interpersonal relationships and correspond to Maslow's levels of love/belonging-related needs.
growth needs : Finally, our innate desire for personal progress is described by growth needs. These requirements correspond to the rest of Maslow's esteem-related needs as well as the self-actualization requirements.
Multiple
needs are active at the same time, according to the ERG theory, and these needs
do not exist in a hierarchy, but rather on a continuum
Figure 1: Alderfer's ERG theory
Source:
Maslow thought that if a person can meet a need,
they would continue to do so. However, according to Alderfer (1969), a person
will forego such a desire, improvise, and concentrate on a more basic need. Alderfer's
ERG theory has a more intuitive appeal than Maslow's hierarchy of needs theory
and is more directly applicable to employee motivation. It also has more
empirical backing
4.1. Employee Motivation in the Banking Sector and Alderfer's ERG Theory
We've talked about how motivation drives human behavior in order to reach some level of achievement. In the banking industry, the success of the bank is largely determined by the employees' dedication. According to Alderfer's ERG theory, an employee expects to be met on three basic needs, and when each need is met, it functions as a motivator to meet other needs.
Managers should remember that not everyone is motivated by the very same elements. It depends on the position of the bankers in the hierarchy. The needs hierarchy is likely to resemble the bank's hierarchy in several ways: those at the top are more likely to be motivated by self-actualization/growth needs than by survival requirements.
Employees will be dissatisfied if the bank fails to meet their necessities. For example, one of these basic requirements is safety, and if employees do not feel safe in their workplace, they have no room to be motivated. Morever, all bankers desire to have good relationships. It will be tough for employees to feel motivated if they do not get along with their employer. Similarly, if bankers have a negative relationship with their co-bankers, their motivation is likely to be poor. Not only that, bankers have a desire to advance their careers. Bankers will find it difficult to keep motivated if they work hard year after year and everything remains the same. Bankers require expansion. This could include recognition of their accomplishments, peer regard, wage raises, additional responsibilities, or enhanced peer respect.
List of references
Ivancevich, J., Konopaske, R., &Matteson, M. T.(2008). Organizational Behavior and Management(8thed.). New York:McGraw-Hill Higher Education.
Jane R. 2012. The Development and Use of the Theory of ERG, Emerging Leadership Journeys, Vol. 5 Iss. 1, pp. 2- 8.
Schultz, D. P., & Schultz, S. E. (1998). Psychology and work today: An introduction to industrial and organisational psychology (7th ed.). Upper Saddle River, NJ: Prentice Hall.
Spector, P. E. (2003). Industrial and organisational psychology: Research and practice (3rd ed.). New York, NY: Wiley.
Hi Indika, Great introduction to the topic. According to Caulton (2012), ERG theory proposes to group Maslow’s Hierarchy into core concepts of Existence Needs, Relatedness Needs, and Growth Needs. However, each level of ERG Needs does not need to be completed before working to meet the needs of the other levels. Familiar with the criticism levelled against Maslow’s Hierarchy of Needs theory, Crooks (as cited by Elock, 2020) emphasises that the ERG theory fails to address several issues, of which the following two are the major ones. Firstly, human motivation is subjective. What one person perceives as a moving need may not be a satisfying need for another person. Secondly, needs vary, but human behaviours as a result of an unsatisfied or satisfied need may also vary. Therefore, it can be argued that employee behaviours such as turnover and transfer from one location to another might be a result of either satisfied or unsatisfied needs in the workplace.
ReplyDeleteYour interpretation and explanation of Caulton (2012) is one of the reasons why this blog is so successful. And I have missed that explanation. We are grateful for that
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ReplyDeleteThe ERG motivation theory is an extension of Maslow's hierarchy of needs by categorizing the hierarchy. What is interesting is that these needs can have different priorities for different people (top managers and frontline workers), and their relative importance to one person can vary over time (Arnolds 2002).
ReplyDeleteArnolds, C.A. and Boshoff, C., 2002. Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory. International Journal of Human Resource Management, 13(4), pp.697-719.
Thank you Ravi and I can agree with your comments. But one special occasion. Because it is not something that always happens. Therefore, it is difficult to analyze it as a theory.
Deletea well explained article , this theory has been used as a construct to understand what internal perspectives move humans to certain behaviours. The constructs of existence, relatedness, and growth have been developed through qualitative and quantitative empirical studies to understand how employees might improve job performance. The study has been used to look at job satisfaction, self-esteem, co-worker relationship (Caulton,2012)
ReplyDeleteHi Indika, Well, ERG is one of content theories, according to Content theories answer the question "what drives behavior?" content theories help managers understand what arouses, energizes, or initiates employee behavior (Borkowski, 2011). Further, It has been endorsed by content theories facilitate managers’ thinking about how to understand and satisfy employees’ innate needs through employment (Naylor, 1999).
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