Which statement best describes ERG theory?

ERG theory, proposed by Clayton Alderfer, expands on Maslow's hierarchy of needs by condensing human needs into three core categories: existence, relatedness, and growth. The "existence" category encompasses basic survival needs, such as physiological and safety requirements. "Relatedness" addresses social and interpersonal relationships, while "growth" captures the need for personal development and self-actualization.

This theory recognizes that individuals can pursue needs from different categories simultaneously and that the satisfaction of higher-level needs can sometimes be influenced by the frustration of lower-level needs. This flexibility is a significant aspect of ERG theory, differentiating it from stricter hierarchical models, which suggest a linear progression through levels of needs.

The other statements miss key aspects of ERG theory's comprehensive approach to understanding human motivation, focusing instead on limitations or misconceptions about the model. This makes the correct answer a broad framework that captures the essential dimensions of human needs as formulated in Alderfer's work.