A small organization has only five employees. The employees are very close to one another and the office is like home, very safe and comfortable. However, it is a struggling business, so the employees are not making enough to get by. According to Alderfer, which of the following statements is FALSE?
A) The employees need to make more money before they are motivated by anything else.
B) The employees may put even more effort into their relationships with one another.
C) If the boss proposes an exciting project, the workers may be excited to work on it.
D) The employees may be interested in improving their own skills.

Question

Quizplus · Accepted Answer

According to Alderfer's ERG theory, individuals have three basic needs: existence needs, relatedness needs, and growth needs. Existence needs refer to basic physical needs like salary, while relatedness needs refer to social needs like camaraderie and teamwork. Growth needs refer to personal and professional development. Therefore, it is false that employees need to make more money before being motivated by anything else. They may be motivated by relatedness needs (strong relationships with coworkers) or growth needs (improving their skills) even if they are not making a lot of money.

A Small Organization Has Only Five Employees