The ERG theory reorganizes Maslow’s needs hierarchy into three levels of needs: existence (physiological and safety needs), relatedness (social), and growth (esteem and self-actualization). Today’s companies focus on fulfilling higher-level needs. The major recommendation is to meet employees’ lower-level needs so that they will not dominate the employees’ motivational process.

To use ERG theory, answer six questions: (1) What need does the individual have? (2) What needs have been satisfied? (3) Which unsatisfied need is the lowest in the hierarchy? (4) Have some higher-order needs been frustrated? If so, how? (5) Has the person refocused on a lower-level need? (6) How can the unsatisfied needs be satisfied?