In 1969 Clayton Alderfer published in the Psychological Review an article entitled “An Empirical Test of a New Theory of Human Need”. He expanded Maslow’s Hierarchy of Needs by defining three categories in his ERG theory:
- Existence Needs: physiological and safety needs
- Relatedness Needs: social and external esteem
- Growth Needs: internal esteem and self actualization
ERG Theory says that the order of importance of these three categories may vary for each individual. Managers should acknowledge that an employee has multiple needs and work for satisfaction of all.
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