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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
affective
commitment?
This figure represents which of these task
interdependences?
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
Better
manager
Work hard Learn 7
Pay attention
Take notes theories
Good exam
grade
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
uncomfortable.
How Satisfied are You?
Population MGMT 300
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
Work Itself Pay Promotion Supervision Coworkers
How Satisfied are You?
Men Women
4.0
3.5
3.0
2.5
2.0
1.5
1.0
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
work.
• 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
job?
Emotions and Moods
Affect
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
$19.26
Hourly pay
$15.57
$15.00
• Emotional contagion
shows that one person can $10.00
$9.93
“catch” or “be infected by” $5.00 $5.57
the emotions of another
$0.00
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
jobs
– 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
effort.
• 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
basis.
Patagonia
• What four factors account for
the high levels of job
satisfaction at Patagonia?
• How do these relate to the
material we talked about
today?
Word Creation Exercise
• Carefully read the instructions on the cover page.
• DO NOT TURN THE PAGE UNTIL INSTRUCTED
TO DO SO!
MGMT 300: Leadership and
Organizational Behavior
Motivation
Michael D. Johnson, PhD
Assistant Professor
January 28, 2009
Motivation
• 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.
Direction
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
others.
Expectancy Theory
Motivational
Force = Effort E Performance I1 Outcome 1 V1
I2
E = Expectancy = Subjective I3 Outcome 2 V2
probability that effort will lead to Outcome 3 V3
performance
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
attainment.
– 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
Self-Efficacy
•An individual’s feeling that s/he can complete a
task (e.g. “I know I can!”)
•Enhances probability that goals will be
achieved
Not to be confused with:
Self-esteem, which is:
Individuals’ degree of liking or disliking
themselves
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
duties.
• 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
Theory
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
capabilities.
• 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
performance.
• 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
school?
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
plans.
Compensation Plan Elements
ELEMENT DESCRIPTION
Individual-Focused
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
Unit-Focused
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.
Organization-Focused
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.
