Industry Data & Market Research

Strategic Planning with the ERG (Existence, Relatedness, Growth) Theory of Motivation Framework

ERG (Existence, Relatedness, Growth) Theory of Motivation is a technique that enables better strategic planning in business.

Similar to Maslow's hierarchy of needs, the ERG Theory of Motivation breaks down three types of needs:

  • Existence Needs are physical and physiological safety (e.g., hunger, thirst, sex)

  • Relatedness Needs are social and external connectedness (e.g., family, friends, coworkers)

  • Growth Needs are about internal development and self-actualization (e.g., find meaning and accomplishment)

Alderfer proposed a regression theory to go along with the ERG theory. He said that when needs in a higher category are not met then individuals redouble the efforts invested in a lower category need. For example if self actualization or self esteem is not met then individuals will invest more effort in the relatedness category in the hopes of achieving the higher need.

Other Strategic Planning Frameworks

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