Principles of Management CLEP Practice Exam

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In Alderfer's ERG theory, which need is considered the highest level?

Existence needs
Relatedness needs
Growth needs
Materialistic needs

The correct answer is: Growth needs

In Alderfer's ERG theory, growth needs represent the highest level. This theory condenses Maslow's hierarchy of needs into three core categories: existence, relatedness, and growth. Growth needs involve the desire for personal development, self-esteem, and the realization of one’s potential. This indicates a drive toward achieving individual goals and pursuing new challenges that foster self-improvement and fulfillment. At this stage, individuals seek to enhance their skills, knowledge, and overall self-awareness. These needs are reflective of a person's ambitions and the pursuit of higher achievements, which are crucial for long-term satisfaction and motivation. Understanding growth needs is vital in a management context, as addressing these can lead to increased employee engagement and productivity.