Predicting sales turnover from pay satisfaction and expectation.

Examined the effects of pay satisfaction (PS) and pay expectation (PE), the perceived probability of receiving more satisfying pay in another job, on withdrawal cognition (WC) and turnover. Questionnaires completed by 89 sales representatives measured affective and cognitive variables related to turnover decisions. PS and PE were correlated with WC, but PE did not contribute explanatory variance after PS. PS did, however, explain variance in WC beyond that explained by age or tenure, general (nonpay) satisfaction, amount of pay received, and PE. Only WC and PS were significantly correlated with actual turnover. After WC, no other variable explained additional turnover variance. There was no evidence of an interaction effect of PS and PE on WC or turnover. Results suggest that effects of pay on turnover are mediated primarily by PS and intentions to quit. (18 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Managing motivation: The impact of supervisor feedback on subordinate task interest.

Examined with 64 male and 48 female undergraduates the determinants and consequences of the performance feedback given in an experimentally created supervisor–subordinate work relationship. Subordinates worked on a series of hidden-figure puzzles and received periodic performance feedback from their supervisors. Two dimensions of the supervisors' feedback were assessed: (1) the amount of competence information it contained and (2) the degree to which it was given in a controlling manner. Two situational variables hypothesized to affect these feedback dimensions were manipulated: (1) whether or not the supervisors administered rewards for good performance to their subordinates and (2) whether or not the supervisors were themselves rewarded for maintaining their subordinates' task enjoyment. The impact of the supervisors' feedback on the subordinates' self-perceived competence and task enjoyment was also assessed. A path analytic process analysis revealed that both feedback dimensions were affected by the manipulated situational variables and that both dimensions were in turn related to the subordinates' self-perceived competence. However, the controlling behavior was positively related to self-perceived competence only in the subordinate not rewarded conditions, suggesting an important boundary restriction. The subordinates' self-perceived competence was the sole factor directly related to their task enjoyment. Results are interpreted in terms of theories of intrinsic motivation. (36 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

The determinants of pay satisfaction.

Conducted a study to test empirically (a) the utility of a model of the determinants of pay satisfaction developed by E. E. Lawler (1971) and (b) the value of adding to this model a category of variables not previously included: perceptions of pay-system administration. The study was conducted among 180 US, 133 French-Canadian, and 79 English-Canadian managers. Results provide some support for the utility of Lawler's model and additional support for the value of adding the administrative-type variables. Results of this and other studies are used to develop a modified model of the determinants of pay satisfaction. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Pay, equity, job gratifications, and comparisons in pay satisfaction.

In an investigation of the determinants of pay satisfaction, we held telephone interviews with 248 fully employed men in Dane County, Wisconsin, asking about their income, job satisfaction, and other economic and demographic matters. The social and industrial-organizational psychology literature suggests that pay satisfaction could be influenced by at least four major considerations: the economic benefits received on the job, the extent to which earnings are regarded as fair or deserved, comparisons with other people's pay, and noneconomic job satisfactions. Measures of these possible determinants were established by a factor analysis of 29 items, and the index of pay satisfaction was based on another factor analysis of 8 items. Using these factors and several demographic variables in a multiple regression analysis, we found that three of our four types of psychological determinants made major contributions to predicting pay satisfaction, with the most powerful set of predictors being equity considerations, although material benefits associated with living standards and intrinsic job satisfaction were also major predictors. Social comparisons contributed virtually nothing. Small, significant effects were found for age, occupation, education, and past unemployment. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Keeping up with the Joneses: A field study of the relationships among upward, lateral, and downward comparisons and pay level satisfaction.

The authors examined the relationship between the direction of pay comparisons and pay level satisfaction. They hypothesized that upward pay comparisons would significantly predict pay level satisfaction, even when controlling for other comparisons. Results reported in 2 samples (U.S. sample, N = 295; Belgian sample, N = 67) generally supported this hypothesis. Analyses showed that individuals who were paid much less than their upward pay comparison were dissatisfied with their pay level. The highest levels of pay level satisfaction were observed when actual pay was congruent with the upward comparison pay level. There was also evidence that individuals who were paid much more than their upward pay comparison were dissatisfied with their pay level. However, the negative effects of overreward on pay satisfaction were considerably smaller than were those of underreward. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Predicting sales performance, job satisfaction, and depression by using the Achievement Strivings and Impatience-Irritability dimensions of Type A behavior.

Recent research suggested that two dimensions of Type A behavior, namely, Achievement Strivings (AS) and Impatience-Irritability (II), differentially predict physical health and performance outcomes. The present study extends this research and examines whether AS and II differentially predict work performance (number of insurance policies sold), work attitudes (job satisfaction), and depression in a sample of 117 life insurance salespersons. As hypothesized, after statistically controlling for relevant biographical variables and II, AS predicted the number of policies sold and job satisfaction but was not related to depression. After partialing out the effect of relevant biographical variables and AS, II was associated with depression but not with the number of policies sold. In addition, controlling for the same variables, II was negatively associated with job satisfaction. Implications for the prediction of sales performance, job satisfaction, and depression, and interventions designed to decrease the negative consequences of Type A by reducing II but not AS, are discussed. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Dimensional comparisons: An experimental approach to the internal/external frame of reference model.

According to the internal/external frame of reference model (H. W. Marsh, 1986, 1990a), students not only use social comparisons to evaluate their performance (external frame of reference) but they also use dimensional comparisons (internal frame of reference), comparing their own achievement in one subject with that in other subjects. Three experimental studies were conducted to investigate the psychological processes underlying the effects of achievement in one domain on self-perceived competence in another. In Study 1 (N?=?36), high achievement in one domain led to lower self-perceived competence in the other domain. Study 2 (N?=?45) showed inverse effects on self-perceived competence when achievement feedback included explicit dimensional comparison information about students' achievement in both tasks. In Study 3 (N?=?90), dimensional comparison effects were shown even when additional social comparison information was presented. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Antecedents of salesmen's compensation perceptions: A path analysis interpretation.

Selected antecedents of the valence of pay and the instrumentality of performance for pay were combined into an integrative framework and investigated in a study of 92 male life insurance agents (age range 21–67 yrs). Drawing on 2 models proposed by E. E. Lawler, it was hypothesized that valence would be a function of age, job level, income, pay satisfaction, and commission pay plan, while instrumentality perceptions would be a function of tenure, commission plan, and valence. Data were obtained from company sources and from a job-attitudes questionnaire. A path analytic investigation of the hypothesized linkages suggested that a more parsimonious model of pay perception determinants may be adequate. Specifically, valence was found to be independently and negatively related only to age and pay satisfaction, while instrumentality was a positive function of valence and a negative function of tenure. In addition, pay satisfaction was positively related to age and income and inversely related to job level. Implications of the suggested model are discussed in view of current practice. (25 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Effects of varying performance-pay instrumentalities on the relationship between performance and satisfaction: A test of the Lawler and Porter model.

Predicted that a high-instrumentality pay system should result in positive relationships between performance and satisfaction with pay, and that a low-instrumentality system should result in zero correlations. The pay system (hourly or piece rates) and amount of pay were varied in 2 studies, and measures of performance and job satisfaction (Minnesota Satisfaction Questionnaire and the Job Satisfaction Questionnaire) were taken. Ss were 106 male undergraduates in Study 1 and 60 male and female high school and college students in Study 2. Results indicate that performance-satisfaction correlations under incentive systems were not generally positive and were not larger than correlations under the hourly systems. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Multiple discrepancies and pay satisfaction.

In this study, a mail survey was used to measure pay satisfaction, current salary, 4 personal standards of comparison, and basic demographics for 169 mental health professionals. As predicted, pay satisfaction was determined by the simultaneous appraisal of current salary against several personal standards of comparison. Explained variance in pay satisfaction rose from 26.1% when only salary and demographics were used as predictors to 46.7% when discrepancy-related variables associated with 4 standards of comparison also were used. Furthermore, R–2 for the combined discrepancy-related variables associated with all 4 standards of comparison was significantly greater than R–2 for the discrepancy-related variables associated with any single standard. These discrepancy effects took both additive and nonadditive forms. Discrepancy effects were stronger when deserved salary or minimum salary was the standard of comparison than when other's salary or average salary was. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Academic self-efficacy and first year college student performance and adjustment.

A longitudinal study of 1st-year university student adjustment examined the effects of academic self-efficacy and optimism on students' academic performance, stress, health, and commitment to remain in school. Predictor variables (high school grade-point average, academic self-efficacy, and optimism) and moderator variables (academic expectations and self-perceived coping ability) were measured at the end of the first academic quarter and were related to classroom performance, personal adjustment, stress, and health, measured at the end of the school year. Academic self-efficacy and optimism were strongly related to performance and adjustment, both directly on academic performance and indirectly through expectations and coping perceptions (challenge-threat evaluations) on classroom performance, stress, health, and overall satisfaction and commitment to remain in school. Observed relationships corresponded closely to the hypothesized model. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Conscientiousness and performance of sales representatives: Test of the mediating effects of goal setting.

Used 91 sales representatives to test a process model that assessed the relationship of conscientiousness to job performance through mediating motivational (goal-setting) variables. Linear structural equation modeling showed that sales representatives high in conscientiousness are more likely to set goals and are more likely to be committed to goals, which in turn is associated with greater sales volume and higher supervisory ratings of job performance. Results also showed that conscientiousness is directly related to supervisory ratings. Consistent with previous research, results showed that ability was also related to supervisory ratings of job performance and, to a lesser extent, sales volume. Contrary to expectations, 1 other personality construct, extraversion, was not related to sales volume or to supervisory ratings of job performance. Implications and future research needs are discussed. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Working without a net: Time, performance, and turnover under maximally contingent rewards.

Researchers examined the performance–turnover relationship under conditions of varying reward contingency with 189 sales representatives who earned base pay plus commission (moderately contingent rewards) during their first 2 months of work and commission-only pay (maximally contingent rewards) thereafter. As predicted by an expanded version of the contingent rewards hypothesis, the performance–turnover relationship was stronger under maximally contingent rewards, higher than any reported in the literature. Using event history analyses, the researchers also showed that current (time-dependent) performance affords a better prediction of turnover than average (time-stationary) performance. Performance velocity (slope over time) had a further, unique effect on turnover risk. The implications of these findings for future studies of the employee turnover process and pay systems were discussed. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

A linear model of job satisfaction.

Data relevant to 5 separate areas of a worker's job satisfaction (satisfaction with: work, pay, promotion opportunities, co-workers, and supervision) and 6 independent variables (age, tenure on the job, tenure with the company, job level, salary, and salary desired minus salary received) were gathered from a sample of 185 male workers and 75 female workers employed in 2 plants of an electronics manufacturing firm in New England. Multiple-regression analyses were done on these data to determine the validity of two hypotheses of Herzberg that age and tenure bear U-shaped relationships to job satisfaction. No support was found for these hypotheses. For the male workers a linear model of job satisfaction predicted work and pay satisfaction. None of the other dependent variables for the male or female workers could be predicted significantly and consistently. An explanation based on discrepancies between expectations and environmental return is offered. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Work attitudes, motivation, and performance.

Discusses motivational variables both as determinants of performance by the individual in an organization, and as ingredients of work attitudes, such as job satisfaction. Motivation studies have included motivational traits (relatively enduring predispositions), motivating environments, expectancies, and equity theory. Research on job satisfaction and job involvement reveals few consistent relationships to job performance, but they do predict absenteeism and turnover. A few studies of motivational traits suggest possible utility in predicting role performance in managerial or sales positions. Motivating environments seem to have significant relations to job satisfaction and effectiveness. After reviewing several categories of programs aimed at improving motivation, the author expresses a cautiously optimistic view about the success of these programs in improving worker attitudes and/or worker performance. (33 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Complex nature of the sense of fairness: Internal standards and social comparison as bases for reward evaluations.

Hypothesized that internal standards (whether based on an established sense of "own equity" or experimentally induced), as well as social comparison, can influence pay evaluations. In Study 1, 58 undergraduates completed 4 tasks for pay. Payment was the same (low, medium, or high) for the 1st 3 tasks; for the 4th, Ss received the same or more or less money. Both induced and established internal standards were found to affect Ss' perceptions of the fairness of their own pay. In Study 2, 115 Ss were seated in pairs during their task so that they could observe how much the other S was paid. Both an established internal standard and social comparison affected Ss' fairness judgments. Results also indicate that absolute amount of pay had a greater impact on evaluations of satisfaction than on fairness judgments. Results are discussed in terms of the complex bases of reward evaluation. (15 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Tests of the internal/external frames of reference model with subject-specific academic self-efficacy and frame-specific academic self-concepts.

H. W. Marsh's (1986) internal/external (I/E) frames of reference model posits that students' self-concepts result from simultaneous comparison of their competence to their peers' ability and their ability in other areas. The I/E model failed to receive clear support with (a) subject-specific self-efficacy and (b) frame-specific self-concepts. Frame-specific self-concepts were assessed by asking students to report their self-perceived capability in direct reference to the internal and external comparison frames. Contrary to the I/E model's assumptions, students' verbal and math self-concepts based on the internal comparison were positively correlated; achievement in one area negatively influenced both internal and external comparison-based self-concepts in the other area; and verbal and math self-concepts were positively correlated. Interestingly, most of the model's predictions were confirmed when the classical I/E model structure was replicated, demonstrating that the hypothesized relations among self and achievement factors can be achieved without satisfying the model's theoretical provisions. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Supervisor-subordinate similarity: Types, effects, and mechanisms.

Three types of supervisor–subordinate similarity were identified: (a) perceived similarity, perceptions of how similar the supervisor and subordinate are; (b) perceptual congruence, similarity of perceptions about behaviors important in receiving a high merit pay raise; and (c) actual similarity of individual characteristics. The relation(s) among the types of similarity and of each type with various employee outcomes were examined. Results supported the distinctions among types. Each type was related to subordinate performance. Results were less consistent for job satisfaction and pay ratings. Perceived similarity yielded the strongest relation with the dependent variables. The findings also suggest that similarity affects evaluations not only through bias, but also partly because of differences in supervisor–subordinate interactions. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Causal connections among managers' merit pay, job satisfaction, and performance.

Used the frequency-of-change-in-product-moment and cross-lagged correlation techniques to analyze field study data obtained from 62 managers over 2 yrs. Results indicate that merit pay caused satisfaction and increased the correlation between these 2 variables. Satisfaction was an effect and not a cause of performance. Performance increased the correlation between performance and satisfaction. The merit-pay-causes-performance hypothesis was not supported, but results suggest the possibility of reciprocal causation. (20 ref) (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Employee reactions to contextual and session components of performance appraisal.

A neglected area of performance appraisal research concerns the context within which the appraisal process occurs. For a sample of exempt employees, measures were developed that assessed system components of the appraisal context. The contribution of these variables (complexity, implementation, and follow-up) to the prediction of 2 measures of employee reactions to performance appraisal (review session satisfaction and appraisal system satisfaction) was compared with the contribution of a more frequently studied set of variables—supervisory behaviors in the review session. The relationship of a salary linkage variable to the 2 outcome criteria also was assessed. The supervisory session variables were related to session satisfaction, and the system contextual variables were primarily related to system satisfaction. Salary linkage was associated with system satisfaction. (PsycINFO Database Record (c) 2010 APA, all rights reserved)