Section 6 - Job Satisfaction
Section 6 - Job Satisfaction
9 Positive Employee
Attitudes and Behaviors
CHAPTER OUTLINE
EMPLOYEE ENGAGEMENT Changes in pay structure
JOB SAT,-.ACT,ON Flexible work schedules
The Measurement of Job Satisfaction Benefit programs
Job Satisfaction and Job Performance PO-,T,VE EMPLOYEE BEHAV,OR-
ORGAN,1AT,ONAL COMM,TMENT Organizational Citizenship
Organizational Commitment and Job Satisfaction Behaviors
Inside Tips
THE POSITIVE ASPECTS OF WORK
If someone were to ask us about our jobs or careers, we would probably report some positive feelings, as well
as indicating some aspects of the job with which we were dissatisfied. This chapter more than any other
pulls together a number of issues and topics from I/O psychology. We will look at the positive aspects of
jobs—what causes workers to be engaged in their jobs, their organizations, and their careers. We will explore
how positive employee attitudes and behaviors are connected to job performance. This is really an issue of
216
Employee Engagement 217
motivation, similar to those examined in Chapter 8. This chapter also deals with some measurement issues
that were introduced in Chapter 2. The measurement of employee attitudes, for example, presents a number
of measurement problems. The connection between attitudes and their ability to predict important behaviors
has a long and important history in both social and industrial/organizational psychology.
Y
ou are getting settled into your new job. A great deal of effort went
into finding the position, making it through the screening process, and
landing the job, and in your initial training and orientation. You’ve
learned the ropes and know what to do, but what is going to determine if you
stay in this job, with this company, and even in this career path? We work partly
out of necessity, but we stay in a job or an organization because of the positive
things that come from the job, the company, and the career.
Seventy-five years ago, the only compensation that most workers received
from their jobs was a paycheck. As time went on, this changed as workers began
to demand and receive more from their jobs. Today’s workers receive a variety
of forms of compensation, including health care, retirement, and numerous
other benefits and programs. However, one thing that the workers of the past
and today’s workers have in common is that their jobs constitute a major part
of their lives and are one of the greatest sources of personal pleasure and
pain. Although jobs can be satisfying in some regards, with positive feelings
of accomplishment and purpose, they can also be stressful, and the source of
negative feelings. Such negative feelings may, in turn, affect worker attitudes
and behaviors.
In the next two chapters we will explore the positive and negative effects
of jobs on workers. In this chapter we will focus on employee engagement,
including job satisfaction, organizational commitment, and positive employee
attitudes and behaviors. We will examine how these influence work performance,
absenteeism, and turnover. We will also focus on some of the programs and
techniques designed to increase employees’ engagement in their work and their
organizations. We will then focus on positive employee behaviors and how we
can encourage the best from workers, for the good of the organization and for
improving employee well-being.
Employee Engagement
Employee engagement is a psychological state that is characterized by vigor employee engagement
(energy), dedication, and absorption in one’s work and organization (Schaufeli, a psychological state
Salanova, Gonzalez-Roma, & Baker, 2002). Highly engaged employees are characterized by
vigor, dedication, and
enthusiastic about their jobs, committed to their work and the organization, absorption in one’s
and it is assumed that this state leads them to be more motivated, productive, work/organization
and more likely to engage in positive work behaviors (Macey & Schneider,
2008). We will use employee engagement as an “umbrella” term to focus on
positive employee attitudes, including the related (and much more thoroughly
researched) constructs of job satisfaction and organizational commitment.
218 CHAPTER 9 Positive Employee Attitudes and Behaviors
Job Satisfaction
While job engagement is a broad construct that refers to how much employees
are psychologically and emotionally committed to their jobs and their
organizations, it is a relatively new and understudied variable in I/O psychology.
A related variable—one that has been extensively studied—is job satisfaction.
job satisfaction Job satisfaction consists of the feelings and attitudes one has about one’s
the positive and job. All aspects of a particular job, good and bad, positive and negative,
negative feelings and are likely to contribute to the development of feelings of satisfaction (or
attitudes about one’s job
dissatisfaction). As seen in Chapter 2, job satisfaction, along with productivity,
quality, absenteeism, and turnover, is one of the key dependent variables
commonly considered (and measured) in research in I/O psychology. There
global approach are two approaches to conceptualizing job satisfaction. The first is the global
views job satisfaction approach, which considers overall job satisfaction. This way of looking at
as an overall construct job satisfaction simply asks if the employee is satisfied overall, using a yes–
no response, a single rating scale, or a small group of items that measure
facet approach global job satisfaction. The second is the facet approach, which considers
views job satisfaction as job satisfaction to be composed of feelings and attitudes about a number
made up of individual of different elements, or facets, of the job. For example, overall satisfaction
elements, or facets
may be a composite of numerous factors: satisfaction with pay, the type of
work itself, working conditions, the type of supervision, company policies and
procedures, relations with coworkers, and opportunities for promotion and
advancement. The facet approach considers each of these aspects individually,
assuming that a particular worker might be quite satisfied with some facet,
such as the amount of pay, but unsatisfied with others, such as the quality of
supervision and the opportunities for promotion.
Job Satisfaction 219
workers (Gardner & Pierce, 1998; Mathieu, Hofmann, & Farr, 1993). This
is because different employees may perceive the same job differently, and it
is those individual perceptions that determine whether or not an employee is
satisfied with the job. For instance, improving the working environment may
affect satisfaction for some employees, but not for others, because not everyone
is dissatisfied with the environment.
Another major obstacle in the measurement of job satisfaction is the same
obstacle encountered in the measurement of any attitude—the necessary
the survey. This allows the organization to know whether the job satisfaction
levels of its employees are low, high, or in the “normal” range, as compared to
other workers in other organizations. As demonstrated earlier in the comparison
of levels of satisfaction with salary, if a company simply assumes its employees’
ratings are low (when, in fact, they are average when compared to the norm),
management may spend time and resources on a problem that doesn’t exist.
The ability to compare scores from standardized job satisfaction measures
that have been obtained from different groups of workers in different
companies also allows researchers to investigate the various organizational
factors that cause job satisfaction and dissatisfaction. In other words, if different
questionnaires were used for all studies, researchers could not be sure that the
studies were measuring and comparing the same things.
Two of the most widely used standardized surveys of job satisfaction are
Minnesota
Satisfaction the Minnesota Satisfaction Questionnaire (MSQ) and the Job Descriptive Index (JDI).
Questionnaire (MSQ) The Minnesota Satisfaction Questionnaire (Weiss, Dawis, England, & Lofquist, 1967)
a self-report measure is a multiple-item rating scale that asks workers to rate their levels of satisfaction/
of job satisfaction that dissatisfaction with 20 job facets, including supervisor’s competence, working
breaks satisfaction conditions, compensation, task variety, level of job responsibility, and chances for
down into 20 job facets
advancement. Ratings are marked on a scale from “very dissatisfied” to “neutral” to
“very satisfied.” Sample items from the MSQ are presented in Figure 9.1.
Job Descriptive The Job Descriptive Index (Smith et al., 1969) is briefer than the MSQ
Index (JDI) and measures satisfaction with five job facets: the job itself, supervision, pay,
a self-report job promotions, and coworkers. Within each of the five facets is a list of words or
satisfaction rating scale
measuring five job
short phrases. Respondents indicate whether the word or phrase describes
facets their job, using the answers “yes,” “no,” and “undecided.” Each of the words
or phrases has a numerical value that reflects how well it describes a typically
satisfying job. Items checked within each scale are summed, yielding five
satisfaction scores that reflect the five facets of job satisfaction. In the past it was
suggested that the five scales could be summed into a total score of overall job
satisfaction. However, one study indicates that such a total score is not the best
overall measure and suggests the use of a global assessment instrument called
the Job In General (or JIG scale) as an accompaniment to the five JDI scales
(Ironson et al., 1989).
Since its development in the 1960s, the JDI has become the most widely
used standardized measure of job satisfaction (Roznowski, 1989). Moreover,
the JDI was revised and improved in the mid-1980s by replacing some of
the older scale items with improved items (Smith, Kendall, & Hulin, 1987).
Figure 9.2 presents sample items from the JDI.
Both the MSQ and the JDI have been widely researched, and both have
established relatively high levels of reliability and validity (Kinicki, McKee-Ryan,
Schriesheim, & Carson, 2002; Smith et al., 1969, 1987; Weiss et al., 1967). One
obvious difference between the two measures is the number of job satisfaction
facets measured: The JDI measures 5 facets, the MSQ assesses 20. An important
question is how many or how few facets are needed to measure job satisfaction
adequately. One study suggested that some of the JDI facets could be split into
two parts. For example, the satisfaction with supervision scale could be split into
satisfaction with the supervisor’s ability and satisfaction with the supervisor’s
Job Satisfaction 223
FIGURE 9.1
Sample Items from the Minnesota Satisfaction Questionnaire
Source: Adapted from Weiss, D. J., Dawis, R. V., England, G. W., & Lofquist, L. H. (1967). Manual for the
Minnesota satisfaction questionnaire: Minnesota studies in vocational rehabilitation. Minneapolis, MN: University
of Minnesota, Vocational Psychology Research.
interpersonal skills (Yeager, 1981). Other evidence indicates that some of the
20 MSQ scales are highly correlated with one another and thus could be
collapsed into fewer facets (Gillet & Schwab, 1975; Wong, Hui, & Law, 1998).
One may conclude from these viewpoints that there is no consensus on what
constitutes the ideal or best measurement of job satisfaction. However, most
researchers do agree that a valid, reliable, and standardized instrument will
provide the most accurate assessment.
224 CHAPTER 9 Positive Employee Attitudes and Behaviors
Think of your present work. What is Think of the pay you get now. Think of the opportunities for
it like most of the time? In the blank How well does each of the promotion that you have now.
beside each word given below, following words describe your How well does each of the
write present pay? In the blank beside following words describe these?
each word, put In the blank beside each word, put
Y for “Yes” if it describes Y if it describes your pay Y for “Yes” if it describes your
your work N if it does NOT describe it opportunities for promotion
N for “No” if it does NOT de- ? if you cannot decide N for “No” if it does NOT
scribe it describe them
? if you cannot decide ? if you cannot decide
Think of the kind of supervision Think of the majority of the people Think of your job in general. All in
that you get on your job. How well that you work with now or the peo- all, what is it like most of the time?
does each of the following words ple you meet in connection with In the blank beside each word
describe this supervision? In the your work. How well does each of below, write
blank beside each word below put the following words describe these
people? In the blank beside each
word below, put
Y if it describes the supervision Y if it describes the people you Y for “Yes” if it describes your job
you get on your job work with N for “No” if it does NOT
N if it does NOT describe it N if it does NOT describe them describe it
? if you cannot decide ? if you cannot decide ? if you cannot decide
FIGURE 9.2
Sample Items from the Job Descriptive Index, Revised (Each scale is presented on a separate page.)
Source: Smith, P. C., Kendall, L. M., & Hulin, C. L. (1985). Job descriptive index. From The measurement of satisfaction in work and retirement
(rev. ed.). Bowling Green, OH: Bowling Green State University.
Note: The Job Descriptive Index is copyrighted by Bowling Green State University. The complete forms, scoring key, instructions, and norms can
be obtained from Department of Psychology, Bowling Green State University, Bowling Green, OH 43403.
In addition to the MSQ and JDI, a number of job satisfaction scales have
been developed for research purposes, such as the Job Satisfaction Survey
(Spector, 1997a), a briefer facet measure of job satisfaction that has been
used sporadically in research. From the practitioner standpoint, numerous
consulting firms specialize in job satisfaction/employee satisfaction surveys,
although companies need to use caution because many of these surveys have
not, like the MSQ and JDI, been subjected to rigorous research evaluation.
Job Satisfaction 225
It is important to mention that cultural factors can affect both how workers
define and perceive job satisfaction, and how members of different countries Stop & Review
or cultural groups respond to job satisfaction measures. As a result, there have
Compare and contrast
been many attempts to understand job satisfaction globally (see box Up Close: the MSQ and the JDI.
Job Satisfaction at the International Level).
Perceived
equitable
Value of Abilities rewards
reward and traits
Intrinsic
rewards
Performance
Effort Satisfaction
(accomplishment)
Extrinsic
rewards
Perceived
effort reward Role
probability perceptions
FIGURE 9.3
The Porter–Lawler Model of the Job Performance–Job Satisfaction Relationship
Source: Porter, L. W., & Lawler, E. E. (1968). Managerial attitudes and performance. Homewood, IL: Dorsey Press.
As adapted by Baron, R. A. (1986). Behavior in organizations: Understanding and managing the human side of work (2nd ed.).
Boston: Allyn & Bacon.
Organizational Commitment 227
the argument. Specifically, motivation to perform the job and the satisfaction
derived from the job are both caused by the relationship between what an
individual puts into the job and what is received from the job in terms of
rewards. In other words, both motivation and job satisfaction come from the
perceived equitable relationship between the employee’s inputs to the job and
the job outcomes.
Many other factors could potentially affect the job satisfaction–performance
relationship, for example, the types of jobs that people perform. In fact, evi-
dence suggests that job satisfaction might be more strongly related to job per-
formance for individuals in complex jobs, such as managers, scientists, and
engineers, than in more structured jobs such as accounting and sales (Judge,
Thoresen et al., 2001). Complex jobs, because they require creativity and inge-
nuity, might offer more opportunity for intrinsic reinforcement, and that may
strengthen the connection between satisfaction and performance, in compari-
son to more routine jobs, where satisfaction may be more affected by the struc-
ture or conditions of work, or extrinsic rewards.
Some researchers emphasize that the perception of fairness or justice in
pay is the most important part of this link between performance and job satis-
faction (Miceli, 1993). That is, “relative deprivation” (a discrepancy between a
worker’s expectations and rewards) and perceived fairness of pay may mediate
the relationship between performance and job satisfaction, regardless of the
actual rewards obtained. For example, if highly paid workers do not perceive
their pay to be fair, or to meet their expectations, their satisfaction is likely to be
negatively affected. This may extend beyond pay. A sense of being fairly treated
is a very important determinant of job satisfaction (Clay-Warner, Reynolds, &
Roman, 2005).
In summary, both job satisfaction and job performance are important but
complex work outcomes. There is some evidence that these two variables are
linked, but the relationship is not necessarily direct, influenced by a variety of
other variables, such as job-related rewards, job complexity, feelings of equity
and justice, and other factors.
Organizational Commitment
Just as there are different operational definitions of job satisfaction, so too are
there different definitions of the construct of organizational commitment.
For example, is it an attitude, a behavior, or both? Previously, organizational
commitment, also referred to as company loyalty, was associated with an
acceptance of the organization’s goals and values, a willingness to exert effort on
behalf of the organization, and a desire to remain with the organization (Porter,
Steers, Mowday, & Boulian, 1974). This definition encompasses both attitudes
and behaviors. More recently, the concept of organizational commitment has
been taken to imply worker attitudes, such as those just mentioned, whereas the
concept of organizational citizenship behaviors (OCB) refers to commitment-
related behaviors (Organ, 1990). (We will discuss OCB more fully later in this
chapter.) For example, there is a negative correlation between the attitude of
228 CHAPTER 9 Positive Employee Attitudes and Behaviors
Instructions: Listed below are a series of statements that represent possible feelings that
individuals might have about the company or organization for which they work. With
respect to your own feelings about the particular organization for which you are now
working (company name), please indicate the degree of your agreement or disagreement
with each statement by checking one of the seven alternatives below each statement.*
1 I am willing to put in a great deal of effort beyond that normally expected in order to help
this organization be successful.
2 I talk up this organization to my friends as a great organization to work for.
3 I feel very little loyalty to this organization. (R)
4 I would accept almost any type of job assignment in order to keep working for this organi-
zation.
5 I find that my values and the organization’s values are very similar.
6 I am proud to tell others that I am part of this organization.
7 I could just as well be working for a different organization as long as the type of work was
similar. (R)
8 This organization really inspires the very best in me in the way of job performance.
9 It would take very little change in my present circumstances to cause me to leave this
organization. (R)
10 I am extremely glad that I chose this organization to work for over others I was considering
at the time I joined.
11 There’s not too much to be gained by sticking with this organization indefinitely. (R)
12 Often, I find it difficult to agree with this organization’s policies on important matters relat-
ing to its employees. (R)
13 I really care about the fate of this organization.
14 For me this is the best of all possible organizations for which to work.
15 Deciding to work for this organization was a definite mistake on my part. (R)
FIGURE 9.4
Organizational Commitment Questionnaire (OCQ)
Source: Mowday, R. T., Steers, R., & Porter, L. W. (1979). The measure of organizational commitment. Journal of
Vocational Behavior, 14, 228.
Note: *Responses to each item are measured on a 7-point scale with scale point anchors labeled: (1) strongly
disagree; (2) moderately disagree; (3) slightly disagree; (4) neither disagree nor agree; (5) slightly agree;
(6) moderately agree; (7) strongly agree. An “R” denotes a negatively phrased and reverse-scored item.
Organizational Commitment 229
those with longer tenure with the company, tend to be more committed to the
organization (Becker & Billings, 1993; Lee, Ashford, Walsh, & Mowday, 1992).
As discussed in Chapter 1, beginning in the 1990s and into the financial
“meltdown” of the past several years, many organizations have found it necessary
to reduce the size of their workforces by laying off or terminating workers.
Thousands of people at a time can lose their jobs when a major corporation
reduces the number of people it employs. Such actions, called downsizing
(although some companies have tried to soften this term by relabeling it
“rightsizing”), can have an impact on the workers who are retained, as well as
on those who lose their jobs. For many of the remaining employees, feelings
of organizational commitment and job satisfaction can decline following
downsizing, especially if the employees are close to those who were laid off, or
if they feel that their own jobs may be in jeopardy. However, studies show that
explanations from management giving the reasons for the lay offs and giving
remaining employees a sense of control over their future work situations can
have positive effects on the remaining workforce (Brockner et al., 2004). There
is also some evidence that the overall work effort of employees may actually
increase following downsizing (Taylor & Giannantonio, 1993).
As you might imagine, maintaining job satisfaction and organizational
commitment is a challenge to both employers and employees—a challenge that
becomes even more difficult during trying economic times. Yet, organizations
must be concerned with both employee job satisfaction and organizational
commitment if they are to maintain a high-quality, loyal workforce.
EMPLOYEE AB-ENTEE,-M
Both absenteeism and turnover can be categorized into voluntary and involuntary
forms. Voluntary absenteeism is when employees miss work because they want to
do something else. Calling in sick to take a three-day weekend or taking a day off to
run errands or to go shopping are examples of voluntary absenteeism. Involuntary
absenteeism occurs when the employee has a legitimate excuse for missing work,
typically illness. Because involuntary absenteeism is inevitable, the!organization
must be prepared to accept a certain amount of such absences. It is voluntary
absenteeism, however, that the organization would like to eliminate. Of course,
it is very difficult to distinguish voluntary from involuntary absenteeism, because
Employee Attitudes and Employee Attendance 231
most employees are unlikely to admit that they were voluntarily absent (Dalton &
Mesch, 1991; Hammer & Landau, 1981). One way that researchers have
operationalized the measurement of voluntary and involuntary absenteeism is
to use absence frequency (the number of days absent) as a measure of voluntary
absenteeism and absence length (the number of consecutive days absent) as an
assessment of involuntary absenteeism (Atkin & Goodman, 1984). However, this
is a very crude measure. It is important to note that voluntary absenteeism is
likely to be more strongly associated with employee job satisfaction; involuntary
absenteeism is beyond the control of the employee (Sagie, 1998).
Research examining the relationship between job satisfaction and employee
absenteeism has produced conflicting findings. Sometimes, there is a slight
negative relationship between the two (with higher levels of job satisfaction
associated with lower rates of absenteeism; Ostroff, 1993a), and sometimes no
significant relationship at all is found (Ilgen & Hollenback, 1977; Porter & Steers,
1973). A meta-analysis of a number of studies indicates that job satisfaction and
absenteeism are indeed negatively correlated but that the relationship between
the two is not very strong (Scott & Taylor, 1985). One reason the relationship is
not as strong as one might think stems from problems in measuring absenteeism
that cause voluntary and involuntary absenteeism to be lumped together in most
of these studies. In other words, there may be a significant negative correlation
between job satisfaction and voluntary absenteeism, but no significant rela-
tionship between job satisfaction and involuntary absenteeism due to illness.
According to one study, there is an association between voluntary absence and
job satisfaction; however, this study concluded that rather than job satisfaction
causing the absenteeism, it was really the absenteeism that was leading to lower
job satisfaction (Tharenou, 1993). Perhaps to avoid cognitive dissonance, work-
ers who voluntarily missed work rationalized that if they were choosing to be
absent, they must not have been very satisfied with their jobs.
Another problem might be that even though workers are satisfied with their
jobs, they may find certain nonwork activities (for example, taking an extra day
of vacation or attending a sporting event) more interesting or more important
(Youngblood, 1984). Employees may also be absent because of factors beyond
their control, such as health, transportation, or child-care problems (Goldberg &
Waldman, 2000). Additionally, individual absenteeism may be affected by
coworkers’ absenteeism rates and by the organization’s policy and “climate”
toward absenteeism (Gellatly, 1995; Johns, 1994a; Markham & McKee, 1995).
For example, if coworkers are frequently absent, or if management has a lenient
policy that is tolerant of absences, employees might be inclined to miss work
regardless of how satisfied or dissatisfied they are with their jobs (Haccoun &
Jeanrie, 1995; Harrison & Martocchio, 1998).
Finally, although the construct of absenteeism may appear quite simple,
it, like other behaviors, is probably more complicated than it appears to be on
the surface. Some of this complexity may be illustrated by studies indicating
a negative correlation between age and voluntary absenteeism, and a positive
correlation between age and involuntary absenteeism (Hackett, 1990). In other
words, younger workers tend to voluntarily miss work, whereas older workers
tend to miss work because they are more frequently ill.
232 CHAPTER 9 Positive Employee Attitudes and Behaviors
EMPLOYEE TURNOVER
As with absenteeism, there are difficulties in defining and measuring turn-
over (Campion, 1991). Involuntary turnover occurs when an employee is
fired or laid off. A certain amount of involuntary turnover is likely to be con-
sidered inevitable and possibly even beneficial. Firing workers who are not
performing at desirable levels can be viewed as a positive, “weeding” process
(Mobley, 1982). Layoffs often occur for financial reasons and thus are likely
to be beyond the control of management. Most voluntary turnover takes
place when a competent and capable employee leaves to work elsewhere.
It is this turnover that is costly to the organization, because losing a valued
employee means reduced organizational productivity and increased expenses
associated with hiring and training a replacement. According to one school
of thought, voluntary turnover is likely to be influenced by lack of job satis-
faction and organizational commitment, whereas involuntary turnover is not.
As with absenteeism, research that does not distinguish between voluntary
and involuntary turnover may not find the expected relationships between
employee attitudes and turnover simply because the two types of turnover
are lumped together. Interestingly, some researchers note that there are also
problems in categorizing turnover as either voluntary or involuntary because
some poor workers may not be fired but may voluntarily choose to leave the
organization, which is likely to be glad to see them go. However, this means
that voluntary turnover might be further classified as either dysfunctional or
functional, depending on whether it has negative or beneficial outcomes for
the organization (Dalton, Krackhardt, & Porter, 1981). More recently, it has
been suggested that involuntary turnover caused by downsizing—so-called
reduction-in-force turnover—should be treated as a completely different
category than either voluntary or involuntary turnover (McElroy, Morrow, &
Rude, 2001).
Both job satisfaction and organizational commitment have been investi-
gated as predictors of employee turnover. Meta-analyses indicate that both low
levels of job satisfaction and organizational commitment are related to higher
rates of turnover (Griffeth, Hom, & Gaertner, 2000). Research has demon-
strated that organizational commitment develops from job satisfaction and in
turn influences an employee’s decision to remain with or leave the organization
Employee Attitudes and Employee Attendance 233
workers were divided into teams, each of which was given many of the respon-
sibilities that were previously held by frontline supervisors, including ordering
supplies, setting output rates, creating quality control inspection systems, and
even appraising their own performance. This independence and increased
responsibility can go a long way toward increasing motivation and job satisfac-
tion for many workers. Although job enrichment and job enlargement seem
somewhat similar because both require more work from employees, job enrich-
ment raises the level of tasks, whereas job enlargement does not raise the level
of responsibility associated with the work.
number of reasons (Campbell, Campbell, & Chia, 1998). First, and perhaps
most important, difficulties in the objective assessment of performance mean
that it is often impossible to distinguish the truly good performers from the
more average performers. This leads to feelings of unfairness in the distribu-
tion of merit pay and subsequent employee dissatisfaction (Salimaki & Jamsen,
2010; St-Onge, 2000). Second, most merit pay systems emphasize individual
goals, which may hurt the organization’s overall performance and disrupt group
harmony, especially if jobs require groups to collaborate for the production of a
product. Finally, in many such plans the amount of merit compensation is quite
small in proportion to base salaries. In other words, the merit pay is simply
not viewed as a strong incentive to work harder (Balkin & Gomez-Mejia, 1987;
Pearce, Stevenson, & Perry, 1985). Research has suggested that a merit pay raise
needs to be at least 7% to have a significant impact on employee attitudes and
motivation (Mitra, Gupta, & Jenkins, 1997). Although they are extremely popu-
lar, merit pay systems can only be effective when great care is taken in how these
programs are created (Campbell et al., 1998).
Another strategy for the implementation of pay-for-performance systems is
to make pay contingent on effective group performance, a technique termed
gainsharing gainsharing (Lawler, 1987). The notion of group- or team-based rewards was
a compensation system introduced in Chapter 8. In gainsharing, if a work group or department reaches
based on effective a certain performance goal, all members of the unit receive a bonus. Because
group performance
the level of productivity among workers usually varies, the gainsharing program
must be viewed as being fair to all involved (Welbourne, 1998; Welbourne &
Ferrante, 2008). For example, in one program, workers decided that the most
fair plan was to set a minimum amount that could be received by any worker,
and then base additional pay on each worker’s level of productivity. Thus, the
low producers received some base compensation, but they found that greater
pay would result only if they increased production. The high producers, on the
other hand, were well rewarded for their efforts (Cooper, Dyck, & Frohlich,
1992). One longitudinal study of gainsharing found that it was related to more
positive employee attitudes and greater commitment than employees not par-
ticipating in gainsharing (Hanlon, Meyer, & Taylor, 1994). Another study
found that gainsharing improved members’ teamwork as well as their satisfac-
tion with pay (O’Bannon & Pearce, 1999). Rather than focusing on productivity
increases, some gainsharing programs reward workers who cut production costs
through suggestions and innovations, then passing a portion of the savings on
Stop & Review to the workers (Arthur & Huntley, 2005). Gainsharing may not be appropriate
Describe three tech- for all organizations or for all groups of workers. Therefore, implementation
niques for changing of a gainsharing program must be based on careful planning and a thorough
job structure. knowledge of the groups of workers involved (Gomez-Mejia, Welbourne, &
Wiseman, 2000; Graham-Moore & Ross, 1990). One important consideration is
that a failed attempt at a major change in pay structure, such as a gainsharing
profit sharing plan, could lead to massive worker dissatisfaction (Collins, 1995).
a plan where all A more common plan is profit sharing, in which all employees receive a small
employees receive a share of the organization’s profits (Rosen, Klein, & Young, 1986). The notion
small share of an orga- underlying profit sharing is to instill a sense of ownership in employees, to increase
nization’s profits both commitment to the organization and to improve motivation and productivity
Increasing Employee Engagement, Job Satisfaction, and Organizational Commitment 237
As part of a gainsharing system, this team of auto mechanics competes with other
teams for monthly bonuses.
(Chiu & Tsai, 2007; Cox, 2001; Duncan, 2001). For profit-sharing programs to be
effective, it is imperative that employees buy into the program (Orlitzky & Rynes,
2001). One drawback is that it is often difficult for employees to see how their
individual performances have an impact on the company’s total output. This may
be one reason why profit sharing seems to work better in small companies than in
large ones (Bayo-Moriones & Larraza-Kintana, 2009). In addition, there is typically
quite a long delay between reaching performance goals and receiving individual
shares of the company’s profits (see box Applying I/O Psychology).
Employee ownership is a program where employees own all or part of an employee ownership
organization. Employee ownership can take one of two forms: direct ownership a program where
or employee stock ownership. In direct ownership, the employees are the sole employees own all or
part of an organization
owners of the organization. In employee stock ownership programs, which are
the more common of the two, stock options are considered part of a benefit
package whereby employees acquire shares of company stock over time. Each
employee eventually becomes a company stockholder and has voting rights in
certain company decisions. Proponents of these programs claim that although
they are expensive, the costs are offset by savings created by increased employee
organizational commitment, productivity, work quality, and job satisfaction,
and decreases in rates of absenteeism and turnover (Buchko, 1992; Rosen,
Case, & Staubus, 2005).
Of course tales of the quick success of employee-owned companies in the
1990s, such as Southwest Airlines, United Airlines, and Wheeling Steel quickly
became legendary, but were offset by the ethical scandals of the early 2000s,
and the financial meltdown, which meant that employees who had their retire-
ment funds in stock in Enron, WorldComm, or a variety of Wall Street firms lost
a bundle.
238 CHAPTER 9 Positive Employee Attitudes and Behaviors
One type of flexible schedule is compressed workweeks, in which the num- compressed
ber of workdays is decreased while the number of hours worked per day is workweeks
increased. Most common are four 10-hour days, and certain groups, such as schedules that decrease
the number of days in
nurses, may work three 12-hour shifts per week. Workers may prefer a com-
the workweek while
pressed schedule because the extra day off allows workers time to take care increasing the number
of tasks that need to be done Monday through Friday, such as going to the of hours worked per day
doctor, dentist, or tax accountant. Usually compressed workweeks include
a three-day weekend, which allows workers more free time to take weekend
vacations. Both of these benefits should cut down on absenteeism, because
workers previously might have called in sick to take an extra day of “vacation”
or to run errands. An extended shift might also allow a worker to miss peak
traffic times. However, a drawback is that working parents might have diffi-
culty finding child care for the extended workday. Also on the negative side,
a 10-hour (or 12-hour) workday is more exhausting than the typical 8-hour
day (Cunningham, 1989; Ronen & Primps, 1981; Rosa, Colligan, & Lewis,
1989). This fatigue may lead to decreases in work productivity and concern
for work quality (although many people say that the extra couple of hours
are not necessarily tiring). Meta-analyses suggest that although employees
tend to be satisfied with compressed workweeks and exhibit higher overall job
satisfaction, there is no reduction in absenteeism associated with compressed
schedules (Baltes, Briggs, Huff, Wright, & Neuman, 1999; Di Milia, 1998). In
addition, one study found that workers had more favorable attitudes toward
compressed work schedules if they had participated in the decision to imple-
ment the schedule change (Latack & Foster, 1985).
Flextime is a scheduling system whereby a worker is committed to a speci- flextime
fied number of hours per week (usually 40) but has some flexibility concerning a schedule that com-
the starting and ending times of any particular workday. Often flextime sched- mits an employee to
working a specified
ules operate around a certain core of hours during which all workers must be number of hours per
on the job (such as 10 a.m. to 2:30 p.m.). However, the workers can decide week, but offers flex-
when to begin and end the workday as long as they are present during the core ibility in regard to the
period and work an 8-hour day. Some flextime schedules even allow workers to beginning and ending
borrow and carry hours from one workday to the next or, in some extremely times for each day
flexible programs, from one week to another. The only stipulation is that an
average of 40 hours per week is maintained. Obviously, only certain types of
jobs can accommodate flextime
What are the primary advantages of flextime? For the worker, it affords a
sense of freedom and control over planning the working day (Hicks & Klimoski,
1981; Ralston, 1989). Workers can sleep in and begin work later in the morn-
ing, as long as they make up the time by staying late. Employees who want to
leave work early to do some late-afternoon shopping can arrive early to work
that day. One study of commuting workers showed that flextime commuters
reported less driver stress than workers not on flextime (Lucas & Heady, 2002).
A study of flextime programs found that flextime reduced stress levels for work-
ers in three countries (Canada, Israel, Russia; Barney & Elias, 2010). Research
indicates that flextime programs increase employee satisfaction and commit-
ment and is sometimes positively related to worker productivity (Baltes et al.,
240 CHAPTER 9 Positive Employee Attitudes and Behaviors
1999). Interestingly, flextime pays off for companies that can implement this
type of schedule, achieving reduced rates of absenteeism and the virtual elimi-
nation of tardiness (Baltes et al., 1999; Ronen, 1981).
Benefit programs
Perhaps the most common way for employers to try to increase employees’
job satisfaction and organizational commitment is through various benefit
programs. Benefit programs can include flexible working hours, a variety of
health-care options, different retirement plans, profit sharing, career develop-
ment programs, health promotion programs, and employee-sponsored child
care. This last program has the potential of becoming one of the most popu-
lar and sought-after benefits and may have the extra advantage of helping to
decrease absenteeism caused by employees’ occasional inability to find ade-
quate child care (Milkovich & Gomez, 1976). Interestingly, however, studies
of the effects of employee-sponsored, on-site child-care programs have found
that although they increase worker job satisfaction, the expected reductions in
absenteeism rates have been small (Goff, Mount, & Jamison, 1990; Kossek &
Nichol, 1992).
Growing in popularity are flexible, or “cafeteria-style,” benefit plans, where
employees choose from a number of options (Barringer & Milkovich, 1998).
Lawler (1971) long ago argued that allowing employees to choose their own
benefits led to increases in job satisfaction and ensured that the benefits suited
each employee’s unique needs. One study demonstrated, however, that it is
important that employees receive adequate information and guidance regard-
ing the characteristics of the various benefit programs, to help them make an
informed choice of benefits that best suit their needs, and to avoid dissatis-
faction caused by making incorrect choices (Sturman, Hannon, & Milkovich,
1996). Research suggests that cafeteria-style benefits are perceived as a more
fair system than traditional benefit plans (Cole & Flint, 2004).
It is important to bear in mind that the costs of employee benefits are rising
rapidly—with benefits costing U.S. employers 30–40% of total compensation
(U.S. Department of Labor, 2011). Benefit costs in some European countries
Stop & Review are even higher. As a result, organizations often reduce benefit programs as
List and define four a cost-saving strategy during times of economic downturn. Yet, organizations
alternative pay struc- must be aware of the potential damaging effects of such cuts in benefits on
ture techniques. employee job satisfaction and morale.
The effectiveness of programs designed to increase job satisfaction and
organizational commitment depends on various factors. Although most of
the techniques intended to increase job satisfaction do indeed appear to do
so, there is less evidence that these programs then lead to changes in other
important outcome variables such as productivity, work quality, absentee-
ism, and ultimately turnover. If a company implements a program aimed
at increasing employee job satisfaction, and if management is perceived by
employees to be taking positive steps toward the improvement of the work-
place, job satisfaction will likely improve immediately after the introduction
of the program. However, it may be unclear whether the program actually
Positive Employee Behaviors 241
TABLE 9.1
Types of Organizational Citizenship Behaviors (OCB)
Helping Behavior—voluntarily helping others with work-related problems; helping prevent others
from encountering problems; keeping the peace/managing conflict
Sportsmanship—maintaining a positive attitude in the face of challenges or problems; tolerating
inconveniences and impositions; not taking rejection personally; sacrificing personal interests for
the sake of the group
Organizational Loyalty—promoting the organization to outsiders; defending the organization
from external threats; remaining committed to the organization even under adverse conditions
Organizational Compliance—accepting and adhering to the organization’s rules and procedures;
being punctual; not wasting time
Individual Initiative—volunteering to take on additional duties; being particularly creative and inno-
vative in one’s work; encouraging others to do their best; going above and beyond the call of duty
Civic Virtue—participating in organizational governance; looking out for the organization (e.g.,
turning out lights to save energy, reporting possible threats, etc.); keeping particularly informed
about what the organization is doing
Self-development—voluntarily working to upgrade one’s knowledge and skills; learning new skills
that will help the organization
Source: Podsakoff, P. M., MacKenzie, S. B., Paine, J. B., & Bachrach, D. G. (2000). Organizational citizenship
behaviors: A critical review of the theoretical and empirical literature and suggestions for future research.
Journal of Management, 26, 513–563.
who are “agreeable” and conscientious employees, are more likely to perform
OCBs (Chiaburu, Oh, Berry, Li, & Gardner, 2011; Ilies, Scott, & Judge, 2006).
Table 9.1 presents a list of categories of OCB.
OCBs are positively correlated with both job satisfaction and organizational
commitment (Podsakoff, MacKenzie, Paine, & Bachrach, 2000). In addition,
employees who engage in more OCBs are less likely to turnover than those who
do not engage in OCBs (Chen, Hui, & Sego, 1998) and less likely to be volun-
tarily absent (Lee, Mitchell, Sablynski, Burton, & Holtom, 2004). Moreover,
there is evidence that supervisors notice OCBs, tending to give more positive
performance appraisals to employees who engage in citizenship behaviors as
opposed to those who simply do their jobs. In addition, managers and leaders
have been found to play a critical role in the incidence of employees’ OCBs
if the leaders engage in OCBs themselves (Yaffe & Kark, 2011). There is even
a study that suggests that employees who regularly engage in OCBs are more
safety conscious (Gyekye & Salminen, 2005). An important question, however,
is, “Do OCBs affect the bottom line?” Do employees’ organizational citizenship
behaviors affect organizational performance? Research suggests that employees
who “go the extra mile” and exhibit OCBs do indeed have work groups and
organizations that are more productive and produce higher-quality work than
work groups exhibiting low levels of OCBs (Podsakoff & MacKenzie, 1997a).
Organizational citizenship behaviors seem to affect work performance in
groups as diverse as salespersons (Podsakoff & MacKenzie, 1994), manufactur-
ing workers (Allen & Rush, 1998; Bommer, Dierdorff, & Rubin, 2007), machine
crews in a paper mill (Podsakoff, Ahearne, & MacKenzie, 1997), and restaurant
crews (Koys, 2001; Walz & Niehoff, 1996).
Podsakoff and MacKenzie (1997a) suggested a number of reasons why OCBs
may be related to organizational effectiveness. They include the following:
Workers who help new coworkers “learn the ropes” help them to speedup
the orientation and socialization process and become more productive
employees faster.
Employees who help each other need less managerial supervision, freeing
up the managers’ time for other important duties.
Employees who have positive attitudes toward one another are more coop-
erative and avoid destructive conflicts with other workers.
Workers freely and voluntarily meet outside work times and regularly touch
base with one another, improving the flow of organizational communication.
OCBs lead to a positive work environment and help in the recruitment and
retention of the best-qualified workers.
Workers pick up the slack and “cover” for one another during absences or
times of heavy individual workloads.
Employees are more willing to take on new responsibilities or learn new
technology or work systems.
As can be seen, organizational citizenship behaviors lead to work groups
that engage in the best sorts of organizational and personnel processes and
may help explain what separates the top-performing work groups and organi-
zations from those who have substandard levels of performance. On the other
hand, some workers might be so involved in work and going above and beyond
their job descriptions, engaging in so many OCBs that it might interfere with
their personal lives, similar to the “workaholic” syndrome we saw in Chapter 8
(Bolino & Turnley, 2005).
244 CHAPTER 9 Positive Employee Attitudes and Behaviors
Summary
Job satisfaction, which involves the positive feel- Programs designed to increase job satisfac-
ings and attitudes one has about a job, can be tion include changes in job structure through
conceptualized in overall, or global, terms or in techniques such as job rotation, job enlargement,
terms of specific components or facets and can and job enrichment. Other satisfaction-enhancing
be measured through interviews or with self- techniques suggest changing the pay structure
report instruments. The most widely used self- by using methods such as skill-based pay, pay-for-
report measures are the Minnesota Satisfaction performance programs like merit pay, gainsharing,
Questionnaire (MSQ) and the Job Descriptive Index or profit sharing, which are sometimes contin-
(JDI). Research indicates that there is a slight gent on effective group performance. Flexible
positive relationship between job satisfaction work schedules, such as compressed workweeks and
and job performance, although the link may flextime, improve satisfaction by giving workers
be moderated by a third variable, such as the greater control over their jobs. Still other meth-
receipt of work rewards. Job satisfaction is posi- ods of improving satisfaction involve increasing
tively correlated with organizational commitment, job-related benefits.
or employees’ feelings and attitudes about the Positive employee behaviors beyond the
entire work organization. normal job routine are termed organizational citi-
Both job satisfaction and organizational zenship behaviors, and these are positively related
commitment tend to be negatively correlated to desirable work outcomes. Most recently,
with voluntary employee absenteeism. However, research has focused on the role of positive affect
the relationships are complex and difficult to in employee behavior, with job satisfaction medi-
decipher, partly due to the difficulty involved ating the relationship between affect and work
in distinguishing voluntary absenteeism from outcomes. This emphasis on positive employee
involuntary absenteeism. Job satisfaction and attitudes, emotions, and behaviors reflects I/O
organizational commitment are also related to psychology’s concern with both organizational
voluntary employee turnover. functioning and employee well-being.
246 CHAPTER 9 Positive Employee Attitudes and Behaviors
Web Links
http://www.bgsu.edu/departments/psych/io/jdi/
Information on the Job Descriptive Index (JDI).
Suggested Readings
Macey, W. H., Schneider, B., Barbera, K. M., & nature, antecedents, and consequences. Thousand
Young, S. A. (2009). Employee engagement: Tools Oaks, CA: Sage. A detailed, high-level review of
for analysis, practice, and competitive advantage. research on OCB.
Chichester, UK: Wiley-Blackwell. A book focus- Spector, P. E. (1997). Job satisfaction: Application,
ing on research and practice implications for employee assessment, causes, and consequences. Thousand
engagement. Part of a series for practitioners called Oaks, CA: Sage. A very readable overview of the effects
“Talent Management Essentials.” of job satisfaction on work behavior.
Organ, D. W., Podsakoff, P. M., & MacKenzie, S. B.
(2006). Organizational citizenship behavior: Its