Job satisfaction

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					MGMT 300: Leadership and
Organizational Behavior

Job Satisfaction

Michael D. Johnson, PhD
Assistant Professor
January 28, 2009
Wonderlic Personnel Test

Offensive tackles   26   Chemist            31

Centers             25   Attorney           29
Quarterbacks        24   Executive          28
Guards              23
                         Newswriter         26
Tight ends          22
                         Sales              24
Safeties            19
                         Bank teller        22
Linebackers         19
                         Firefighter        21
Cornerbacks         18
                         Security guard     17
Wide receivers      17
                         Warehouse worker   15
Fullbacks           17

Halfbacks           16
Today’s Agenda

• Job satisfaction presentation

• Motivation presentation

• Quiz!
•Jan 28, 2009
The value of the set of employee behaviors that
 contribute, either positively or negatively, to
 organizational goal accomplishment is known as:
 A. job commitment
 B. motivation
 C. job satisfaction
 D. job performance
 E. organizational commitment
At ABC Coffee Roasters, employees learned that a few of
  them will be losing their jobs, and in response, they
  purposefully started to mix decaf beans in bags of
  regular beans and vice versa. This created serious
  customer service issues and the company lost major
  accounts. The action of the employees at ABC can be
  described as:
  A. theft
  B. incivility
  C. wasting resources
  D. sabotage
  E. political deviance
Hubert Hall has been a loyal employee for the past 25
 years at XYZ International, but has not been enjoying his
 job as much in the past two years. Hubert feels obligated
 to stay with XYZ until he retires in five years because the
 company has invested a lot of time and money in him.
 This is an example of
 A. continuance commitment
 B. affective commitment                  For 1 extra point,
 C. embeddedness                           can anyone give
 D. normative commitment                     examples of
 E. social influence                       continuance and
This figure represents which of these task
 A. Pooled
 B. Reciprocal
 C. Response
 D. Comprehensive
 E. Sequential
• 5. Which dimension of the Big Five has the
  biggest influence on job performance?

 A. Conscientiousness
 B. Extraversion
 C. Agreeableness
 D. Openness
 E. Neuroticism
Hard Work Day

  Work hard       Learn 7
  Pay attention
   Take notes     theories
                             Good exam
Agree or Disagree?

• “Managers should do everything they can to enhance the
  job satisfaction of their employees.”

• It doesn’t matter how employees say they feel about their
  employers. What matters is whether they have better
  options out there.”

• “Part of the meaning of life is to have highs and lows. A life
  that was constantly happy was not a good life.”
Job Satisfaction

• Job satisfaction is a pleasurable emotional state resulting from the
  appraisal of one’s job or job experiences.
   – It represents how you feel about your job and what you think about
     your job.
   – 49 percent of Americans are satisfied with their jobs, down from 58
     percent a decade ago.
Value-Percept Theory

• Value-percept theory argues that job satisfaction depends on whether you
  perceive that your job supplies the things that you value.
• People evaluate job satisfaction according to specific “facets” of the job.

                  Dissatisfaction = (Vwant - Vhave) X (Vimportance)

  – Vwant reflects how much of a value an employee wants
  – Vhave indicates how much of that value the job supplies
  – Vimportance reflects how important the value is to the employee
The Value-
Percept Theory of
Job Satisfaction
Value-Percept Theory, Cont’d

• Pay satisfaction refers to employees’ feelings about their pay, including
  whether it is as much as they deserve, secure, and adequate for both normal
  expenses and luxury items.
• Promotion satisfaction refers to employees’ feelings about the company’s
  promotion policies and their execution, including whether promotions are
  frequent, fair, and based on ability.
• Supervision satisfaction reflects employees’ feelings about their boss,
  including whether the boss is competent, polite, and a good communicator.
• Coworker satisfaction refers to employees’ feelings about their fellow
  employees, including whether coworkers are smart, responsible, helpful, fun,
  and interesting as opposed to lazy, gossipy, unpleasant, and boring.
• Satisfaction with the work itself reflects employees’ feelings about their actual
  work tasks, including whether those tasks are challenging, interesting,
  respected, and make use of key skills rather than being dull, repetitive, and
How Satisfied are You?

                      Population   MGMT 300

        Work Itself   Pay    Promotion   Supervision   Coworkers
How Satisfied are You?

                      Men   Women







          Promotion                 Work Itself
Correlations Between Satisfaction Facets and Overall Job Satisfaction
Critical Psychological States

• Meaningfulness of work reflects the
  degree to which work tasks are viewed as
  something that “counts” in the employee’s
  system of philosophies and beliefs.
• Responsibility for outcomes captures the
  degree to which employees feel that they
  are key drivers of the quality of the unit’s
• Knowledge of results reflects the extent
  to which employees know how well (or how
  poorly) they are doing.

     What type of tasks create these
          psychological states?
Job Characteristics Theory

  Identifies five job
  characteristics and their
                                 1. Skill variety
  relationship to personal and
  work outcomes                  2. Task identity
  Which characteristic did       3. Task significance
  Adam Grant study?              4. Autonomy
  Could task significance        5. Feedback
  make a difference at your
Emotions and Moods

      A broad range of emotions that people experience

  Emotions                             Moods
  Intense feelings that are            Feelings that tend to
  directed at someone or               be less intense than
  something                            emotions and that lack
                                       a contextual stimulus
Moods and Emotions, Cont’d

• Emotional labor is the need                           Low cognitive demands
                                                        High cognitive demands
  to manage emotions to
  complete job duties                        $25.00

  successfully.                              $20.00

                                Hourly pay
• Emotional contagion
  shows that one person can                  $10.00
  “catch” or “be infected by”                 $5.00                     $5.57
  the emotions of another
  person                                                  Low         High
                                                      Emotional labor demands
Life Satisfaction

• Job satisfaction is strongly related to life satisfaction, or the degree to
  which employees feel a sense of happiness with their lives.

  – People feel better about their lives when they feel better about their
  – Increases in job satisfaction have a stronger impact on life
    satisfaction than do increases in salary or income
How Important is Satisfaction?

• Job satisfaction does influence job performance.
   – It is moderately correlated with task performance. Satisfied employees do a
     better job of fulfilling the duties described in their job descriptions.

• Job satisfaction is correlated moderately with citizenship behavior.
   – Satisfied employees engage in more frequent “extra mile” behaviors to help
     their coworkers and their organization.

• Job satisfaction influences organizational commitment.
   – Job satisfaction is strongly correlated with affective commitment, so satisfied
     employees are more likely to want to stay with the organization.
Tracking Satisfaction Levels

• Several methods assess the job satisfaction of rank-and-file employees,
  including focus groups, interviews, and attitude surveys.
    – Attitude surveys are often the most accurate and most effective.
      • Job Descriptive Index (JDI)
   – Attitude surveys ideally should be a catalyst for some kind of improvement

• An organization that struggles with satisfaction with the work itself could attempt
  to redesign key job tasks or, if that proves too costly, train supervisors in
  strategies for increasing the five core job characteristics on a more informal

• What four factors account for
  the high levels of job
  satisfaction at Patagonia?

• How do these relate to the
  material we talked about
Word Creation Exercise

• Carefully read the instructions on the cover page.

MGMT 300: Leadership and
Organizational Behavior


Michael D. Johnson, PhD
Assistant Professor
January 28, 2009

• Person’s level of performance is a function (f) of
  ability, motivation, and opportunity:

 Performance = f (Ability x Motivation x Opportunity)
What is Motivation?

• Motivation is defined as a set of energetic forces that originates both within and
  outside an employee, initiates work-related effort, and determines its direction,
  intensity, and persistence.


                       Intensity Persistence
Expectancy Theory

• Expectancy theory describes the
  cognitive process that employees go
  through to make choices among
  different voluntary responses.
   – Employee behavior is directed
      toward pleasure and away from
      pain or, more generally, toward
      certain outcomes and away from
Expectancy Theory

      Force = Effort E      Performance        I1        Outcome 1   V1

     E = Expectancy = Subjective                    I3 Outcome 2     V2

        probability that effort will lead to           Outcome 3     V3
     I = Instrumentality = Subjective
        probability that performance will
        lead to various outcomes
     V = Valence = Expected
        satisfaction with each outcome
     Motivational Force = E C S(I C V)
Cognitive Evaluation Theory

   Providing an extrinsic reward for behavior that had
   been previously only intrinsically rewarding tends to
   decrease the overall level of motivation
   The theory may be relevant only to
   jobs that are neither extremely
   dull nor extremely interesting.
                                      Hint: For this theory,
                                       think about how fun it is
                                       to read in the summer,
                                       but once reading is
                                       assigned to you for a
                                       grade, you don’t want
                                       to do it!
Goal Setting Theory

• Goal setting theory views goals as the primary drivers of the intensity
  and persistence of effort.
   – Assigning employees specific and difficult goals will result in higher
     levels of performance.

     What is a difficult goal?
Goal Difficulty and Task Performance
Goal Setting Theory, Cont’d

• Moderators on Task Performance

 – Feedback consists of updates on employee progress toward goal

 – Task complexity reflects how complicated the information and
   actions involved in a task are, as well as how much the task changes.

 – Goal commitment is defined as the degree to which a person
   accepts a goal and is determined to try to reach it.
Strategies for Fostering Goal Commitment
What Is MBO?
  Management by Objectives (MBO)
  A program that encompasses specific goals,
  participatively set, for an explicit time period, with
  feedback on goal progress

             Key Elements
             1. Goal specificity
             2. Participative decision making
             3. An explicit time period
             4. Performance feedback

      •An individual’s feeling that s/he can complete a
      task (e.g. “I know I can!”)
      •Enhances probability that goals will be

Not to be confused with:

        Self-esteem, which is:
        Individuals’ degree of liking or disliking
Increasing Self-efficacy

              1. Enactive Mastery
              2. Vicarious Modeling
              3. Verbal Persuasion
              4. Arousal

    Note: Basic Premise/Mechanism of Pygmalion and
                    Galatea Effects
Enactive Mastery

• Financial simulation with MBA students

• Four conditions of false feedback:
   –Bad at first, but steadily increasing
   –Bad and stayed bad
   –Good at first, but steadily decreasing
   –Good and stayed good

• Which condition performed best overall? Why?
Equity Theory

                • Equity theory acknowledges that motivation doesn’t
                  just depend on your own beliefs and circumstances
                  but also on what happens to other people.
                    – Employees create a “mental ledger” of the
                      outcomes (or rewards) they get from their job

                • You compare your ratio of outcomes and inputs to the
                  ratio of some comparison other — some person
                  who seems to provide an intuitive frame of reference
                  for judging equity.
                • “Cognitive calculus”
                   – Ratio of outcomes to inputs is balanced between
                      you and your comparison other.
Some Outcomes and Inputs Considered by Equity
Equity Theory
                 My Outcomes       Other’s Outcomes
            IF                 =
                  My Inputs         Other’s Inputs

Employees may:
 – Increase or decrease inputs
 – Change their outcomes
 – Distort their perceptions of inputs and/or outcomes
 – Distort perceptions of other’s inputs and/or outcomes
 – Change the referent others
 – Leave the organization
How Important is Motivation?

• Strongest performance effect is self-efficacy / competence; people who feel a
  sense of internal self-confidence tend to outperform those who doubt their

• Difficult goals are the second most powerful motivating force.

• The motivational force created by high levels of valence, instrumentality, and
  expectancy is the next most powerful motivational variable for task

• Perceptions of equity have a somewhat weaker effect on task performance.
The Emperor’s Club

• What motivation theory
  explains Mr. Hundert’s
  decision to leave the
Designing Compensation Systems

• Do the elements provide difficult and
  specific goals for channeling work effort?
   – Lump sum bonuses and gainsharing
      have been credited with improvements
      in employee productivity.

• Consider the correspondence between
  individual performance levels and individual
  monetary outcomes.

• Merit pay represents the most common
  element of organizational compensation
Compensation Plan Elements
      ELEMENT                                           DESCRIPTION

 Piece-Rate           A specified rate is paid for each unit produced, each unit sold, or
                      each service provided.

 Merit Pay            An increase to base salary is made in accordance with performance
                      evaluation ratings.

 Lump-Sum Bonuses     A bonus is received for meeting individual goals but no change
                      is made to base salary. The potential bonus represents “at risk”
                      pay that must be re-earned each year. Base salary may be lower
                      in cases in which potential bonuses may be large.

 Recognition Awards   Tangible awards (gift cards, merchandise, trips, special events,
                      time off, plaques) or intangible awards (praise) are given on an
                      impromptu basis to recognize achievement.
Compensation Plan Elements, Cont’d
        ELEMENT                                        DESCRIPTION

 Gainsharing            A bonus is received for meeting unit goals (department goals,
                        plant goals, business unit goals) for criteria controllable by
                        employees (labor costs, use of materials, quality). No change is
                        made to base salary. The potential bonus represents “at risk”
                        pay that must be re-earned each year. Base salary may be lower
                        in cases in which potential bonuses may be large.

 Profit Sharing         A bonus is received when the publicly reported earnings of
                        a company exceed some minimum level, with the magnitude
                        of the bonus contingent on the magnitude of the profits. No
                        change is made to base salary. The potential bonus represents
                        “at risk” pay that must be re-earned each year. Base salary may
                        be lower in cases in which potential bonuses may be large.

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