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1、Motivation, pay satisfaction, and job satisfaction of front-line employeesCarolyn Stringer University of Otago, Dunedin, New Zealand Jeni Didham Westpac, Sydney, Australia, and Paul Theivananthampillai University of Otag

2、o, Dunedin, New ZealandAbstractPurpose – This paper aims to explore the complex relationships between intrinsic and extrinsic motivation, pay satisfaction and job satisfaction at the retailer that uses a pay-for-performa

3、nce plan for front-line employees.Design/methodology/approach – This paper draws on a single organization case study across seven stores, and uses a survey, archival documents, open-ended questions and researcher interac

4、tion with employees and managers.Findings – The results provide some support for the complementary nature of intrinsic and extrinsic motivation. Intrinsic motivation was positively associated with pay and job satisfactio

5、ns, whereas extrinsic motivation was negatively associated with job satisfaction, and not associated with pay satisfaction. The qualitative insights indicate that pay fairness is important, and those who perceived pay wa

6、s not fair generally made comparisons with others or felt that pay did not reflect their effort. It is also found that the majority of employees perceived that goals were clear.Research limitations/implications – The dom

7、inance of extrinsic motivation without including behavioural, social, and psychological factors in agency theory research is questioned. The research finds no support for “crowding out”, but rather finds some evidence of

8、 “crowding in” where intrinsic motivation is enhanced, to the detriment of extrinsic motivation.Practical implications – The findings highlight that managers should enhance both intrinsic and extrinsic motivation, and pa

9、y employees well to increase job satisfaction.Originality/value – Few studies examine incentives for front-line employees, and there is evidence that minimum wage employees can have high intrinsic motivation. Perceptions

10、 of pay fairness can vary across motivation levels, age, and gender.Keywords Incentives (psychology), Motivation (psychology), Intrinsic motivation, Pay satisfaction, Job satisfaction, EmployeesPaper type Case studyThe c

11、urrent issue and full text archive of this journal is available atwww.emeraldinsight.com/1176-6093.htmThe authors would like to thank Professor Ralph Adler, Dr Rosalind Whiting, Associate Professor David Lont, Professor

12、Roger Willett, Dr Michael Falta, Sriyalatha Kumarasinghe, and seminar participants in the Department of Accountancy and Business Law at the University of Otago for their insightful comments. The authors are also grateful

13、 for the comments provided by Associate Professor Keith T. Jones and the participants of the 2008 American Accounting Association Conference in Los Angeles.Motivation of front-line employees161Qualitative Research in Acc

14、ounting Kominis and Emmanuel, 2005, 2007; Kunz and Pfaff, 2002; Ronen and Livingstone, 1975). The second contribution is the positive association between pay and intrinsic motivation, which suggests that the “crowding-o

15、ut” literature may have overstated the case that extrinsic rewards have a negative impact on intrinsic motivation (Kunz and Pfaff, 2002). Our third contribution is finding that intrinsic motivation increases job satisfac

16、tion, whereas extrinsic motivation decreases job satisfaction. This is consistent with the “crowding-in” argument (Frey, 1997). The fourth contribution is that perceptions of pay unfairness cut across levels of motivatio

17、n, age, and gender and are generally based on comparisons with other employees or feelings that pay did not reflect an individual’s effort. The literature section is followed by a description of the case study and survey

18、, then the discussion and analysis of the quantitative and qualitative results, and finally the conclusions.2. Literature 2.1 Motivation and pay satisfaction The philosophy behind pay-for-performance plans draws upon rei

19、nforcement theory that suggests that pay be linked to performance by setting specific targets and then rewarding individuals for achieving these targets (Heneman, 1992; Skinner, 1953). Agency theory is based on compensat

20、ion contracts designed to balance trade-offs between risk and incentives for individuals and groups in order to align the interests of managers and shareholders (Eisenhardt, 1989; Jensen and Meckling, 1976). Agency theor

21、y focuses on extrinsic rewards that are tangible and quantifiable (Merchant et al., 2003). Actions are rewarded and punished, and so this determines employees’ actions and effort and performance (Jensen and Murphy, 2004;

22、 Kreps, 1997). Therefore, pay is a powerful lever to influence extrinsic motivation (Locke et al., 1980). This gives rise to the following research proposition:P1. The association between pay satisfaction and extrinsic m

23、otivation is positive.The other form of motivation, intrinsic motivation, captures the aspects of doing work for its own sake (Osterloh and Frey, 2002; Ryan and Deci, 2000b), provides psychological benefits of well-being

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