Performance Management 219
or attributes of the individual to explain motivation. Needs are
latent internal characteristics activated by a stimulus or objects that a
person experiences. The person tries to behave in a way that satisfi es an
activated need.Hierarchy of Needs Abraham Maslow ’ s hierarchy of needs (1954) is one
theory suggesting that needs can be reduced to fi ve groups of basic human
needs whose satisfaction is sought by adults. The lowest - level needs are phys-
iological needs : food, water, sleep, and sex. Safety needs , which come next, are
the desires of a person to be protected from physical or economic harm. Be-
longingness and love needs include the desire to give and receive affection and to
be in the company of others. Esteem needs address a person ’ s self - confi dence
and sense of self - worth. The highest - level need is self - actualization , which
describes the desire for self - fulfi llment. As each of these needs becomes
satisfi ed, the next need becomes dominant. Physiological and safety needs
are referred to as lower - order needs, and social, esteem, and self - actualization
needs are categorized as higher - order needs. According to this theory,
people must satisfy needs at the bottom of the hierarchy before high - level
needs emerge as important.ERG Theory Clayton P. Alderfer (1972) proposed a modification of
Maslow ’ s hierarchy of needs theory. Alderfer reduces the fi ve need
levels to three more general levels: existence needs, relatedness needs,
and growth needs (ERG). Existence needs are those required to sustain
human existence, including physiological and safety needs. Relatedness
needs are those concerning how people relate to their surrounding social
environment, including the need for meaningful social and interpersonal
relationships. Growth needs relate to the development of human potential,
including the needs for self - esteem and self - actualization. This is the
highest need category.
Alderfer ’ s model is similar to Maslow ’ s in that in both models,
individuals move up the hierarchy one step at a time as a need is met. An
unmet need is a motivator. If both lower - order and higher - order needs are
unsatisfi ed, the lower - order needs will be the most important motivators of
behavior. Where the theories are different is, according to Maslow, indi-
viduals progress up the hierarchy as a result of the satisfaction of lower -
order needs. In contrast, ERG suggests that in addition to this satisfaction
progression process, there is also a frustration regression process. When an