Final answer:
The claim that an employee must substantially satisfy existence needs before moving on to relatedness needs according to Alderfer's theory is false due to the frustration-regression principle.
Step-by-step explanation:
The statement concerning Alderfer's theory is false. According to Clayton Alderfer's ERG theory, an extension of Maslow's hierarchy of needs, there are three core needs: Existence, Relatedness, and Growth. Alderfer proposed that when a higher-level need is frustrated, the individual's desire to increase a lower-level need takes precedence. This concept is known as the frustration-regression principle. Therefore, unlike Maslow's hierarchy where the satisfaction of lower-level needs is required before one can move on to higher-level needs, Alderfer's model does not require the satisfaction of existence needs before one moves on to relatedness needs.