Western Governors University (WGU) BUS2301 C483 Principles of Management Practice Exam

In Alderfer's ERG theory, the model categorizes human needs into three fundamental sets: Existence, Relatedness, and Growth. The 'Growth' need refers to the intrinsic desire for personal development, self-esteem, and an expanding sense of competence. This encompasses psychological growth, self-actualization, and the desire to achieve one’s potential.

The 'Growth' need is essential because it drives individuals to seek new challenges and opportunities for advancement in their personal and professional lives. It underscores the importance of fulfillment, creativity, and the pursuit of goals that contribute to a person's overall development.

Understanding Alderfer's ERG theory is crucial for managers, as it helps in creating an environment that satisfies employees' needs, thereby fostering motivation and engagement. By recognizing the importance of growth alongside existence needs (basic physical and safety requirements) and relatedness needs (social connections and relationships), managers can better support their teams and drive performance.