ERG Theory of Motivation

Alderfer's ERG theory is another needs-based motivation theory, one that draws on Maslow's hierarchy of necessities but connects it with empirical research to overcome its faults (Arnolds & Boshoff, 2002, p. 698)              

                                                               Figure 04

                                             


                                                         Source: Reaserchgate.net 


Clayton Alderfer founded ERG to overcome the shortcomings of Maslow's requirements hierarchy. Existence needs consider a person's psychological and physical safety needs, such as food,  shelter, and safe working environment. Relatedness demands include a person's need to communicate with others, get public recognition, and feel comfortable and secure in the presence of others (i.e., interpersonal safety). Personal achievement, as well as the concept of self actualization, are   examples of growth demands (Bateman & Snell 2013, Robins & Coulter, 2012 and McShane &Von Glinow 2000). Unlike Maslow's model, however, ERG theory consists of a "frustration regression process" in which individuals who are unable to meet a higher need become irritated and retrogress to the next lower need level. For example, if existence and relatedness requirements are satisfied but growth needs are not met, the individual would become disheartened, and relatedness needs will resurface as the primary source of motivation (McShane &Von Glinow 2000).

 According to the theory, if an employee doesn’t get enough growth opportunities, they get demotivated and frustrated. So instead of fulfilling those needs, they may regress to a lower satisfied need (Armstrong ,2009) . To avoid this risk, Huawei has recognized and addressed basic demands at the highest levels of quality while providing development and growth opportunities for all employees who exhibit full potential. 

Application of ERG theory in Huawei

According to Armstrong (2008), de-motivated individuals show indicators of low morale, which can be detrimental to the organization. According to Armstrong (2008), high rates of absenteeism, tardiness, high levels of employee turnover, sabotage, poor pride in their work, wastage, low job satisfaction, endless grievances, indiscipline, and lack of team spirit are among the more prominent warning signs of de-motivated employees.

Table :02

                Factors

              Examples

Growth

Huawei Open Labs (any theory can be test and innovate in this lab)

Regional job Opportunities

High Morel and confidence building sessions

Special gifts for innovative ideas

Relatedness

Quarterly team building session – Out of Office

Celebrations – Birthdays / Anniversaries

Friday team lunch with line managers (To share weekly update and maintaining weekly engagement) 

“Huawei achievers’ night” recognition and reward annual Event

Huawei Presidents club membership

Existence  

Welcome package (High performance Computer and other accessories)

Great Ambiance (Quality air/ Clean environment / Greenery concepts)

Refreshments (Fruits /Coffee /Tea), Dinner

2 Hour rest after lunch (Power Nap)

Play area (Pool Table) and Library (Huawei Founders Books)

Free Medical Checkups (Covid Period)

Free Sports Membership (Gym /Badminton)

Physical Security key card for on premises security

Standard GDPR compliance for digital security

Workshop compliance for Site workers

Industry benchmarked remuneration package

Project Base Incentives plans

Two times bones per annum



Huawei has built a strong reputation in the global ICT market for end-to-end capabilities via innovation and customer-centricity. Thus, Huawei has used the following motivational method mention in Table 2 to tap into employees' full potential and drive employees and organizations to success.

Reference

Armstrong, M. (2008). A Handbook of Employee Reward Management and Practice. 2nd ed. New Delhi: Kogan Page.

Armstrong, M. (2009). Armstrong’s Handbook of Human Resource Management Practice. 11th ed. London ; Philadelphia: Kogan Page.

Bateman, T. and Snell, S. (2012). Management Leading & Collaborating in the Competitive World. 10th ed. Irwin Professional Pub / McGraw-Hill Education.

McShane, S.L. and Glinow, M.V. (2000). Organizational Behavior. 7th ed. Irwin Professional Pub.

Robbins, S.P. and Coulter, M.K. (2012). Management. 11th ed. New Jersey 07458: Prentice Hall, pp.430–434

Comments

  1. Nuwan Hasitha Dias16 May 2022 at 05:04

    Hello, Suresh. Excellent article. These models (Maslow's or ERG) have failed to describe employees' demands, according to McShane, S.L. and Glinow, M.V. (2000), because people have varied needs. Some people are motivated by social prestige, while others prioritize personal development and advancement.

    ReplyDelete
  2. Lakshan Wickramasinghe16 May 2022 at 09:23

    Hello Suresh, This is an excellent article.Let me add my comment here.Human being is a “wanting being” and all his needs are growing continuously and it needs to make a background where those needs can be satisfied (Trivedi, 2019).Therefore management of a company should take good decisions to fulfill these needs in order to acheive their goals.

    ReplyDelete
  3. Udana16 May 2022 at 19:31

    Hi Suresh. I agree with your content on the post. Let me add something too. Having a motivated set of employees makes an organization's profitability to increase. Workers who are motivated and excited about their jobs carry out their responsibilities to the best of their ability and production numbers increase as a result (Ganta,2014).

    ReplyDelete

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