Page 237 - Psychological Management of Individual Performance

performance leads to rewards that affect satisfaction 221
PERFORMANCE LEADS TO REWARDS THAT AFFECT SATISFACTION

That high performance leads to intrinsic and extrinsic rewards is axiomatic in western
society. In a series of laboratory experiments, Mento, Locke, and Klein (1992) found that
high goals were perceived as instrumental in gaining many positive outcomes, including a
sense of pride in accomplishment, an increase in perceived competency, as well as career
and life success. A series of meta-analyses by Eby et al. (1999) found that perceived
competency, which implies success, increases job satisfaction.
Anshel, Weinberg, and Jackson (1992) found that high goals lead to increases in intrin-
sic motivation. Easy ones decrease it when rewards are not contingent on performance.
Kernan and Lord (1991) found a positive relationship between goal–performance dis-
crepancy and satisfaction; the higher the performance in relation to the goal the better.
They concluded that it is the amount of the discrepancy rather than the person’s absolute
performance that influences satisfaction.
With extrinsic rewards, Farh, Griffeth, and Balkin (1991) found that satisfaction is
high when people are allowed choice. High-ability people chose piece rate pay; those
low in ability chose fixed pay. Their subsequent goals and performance were consistent
with their selection. (Of course, satisfaction is also high when people actually get valued
rewards.)
Thegoal–performancerelationshipisinfluencedbyexternalrewardsonlywhenpeople
believe that the rewards are attainable (Bandura, 1997; Lee, Locke, & Phan, 1997). High
dissatisfaction occurs when rewards are perceived as unfair, as too impersonal, or as
punishment, as can be the case when high performers are consistently assigned more
work than low performers (Doherty, 1998).
Further support for the HPC is offered by Summers and Hendrix (1991) in their field
study of restaurant managers. They found a positive relationship between reward (pay)
fairness and pay satisfaction; pay satisfaction is a component of overall job satisfaction.

SATISFACTION LEADS TO ORGANIZATION COMMITMENT

Commitment to the organization is a key variable in the HPC, because it affects the will-
ingness to remain in the organization and to continue to set and commit to high goals.
A meta-analysis found that job satisfaction and organizational commitment, though re-
lated, are distinct concepts (Tett & Meyer, 1993). We view satisfaction as enhancing
commitment. Another meta-analysis found that the satisfaction–commitment relation-
ship was higher in the private than in the public sector, and for professional than for
clerical workers (Cohen & Lowenberg, 1990).
Mathieu and Zajac (1990), using meta-analysis, found that separating job satisfaction
into intrinsic satisfaction, extrinsic satisfaction, and its components yielded significant
correlations with organization commitment. This supported their earlier finding that job
satisfaction has a direct influence on level of organizational commitment (Mathieu &
Hamel, 1989).
Unlike the external validity of goal-setting across countries (Locke & Latham, 1990a),
culture may be a moderator variable of the above findings. No correlation was found
between satisfaction with one’s job and organizational commitment among people in
the United Emirates (Alnajjar, 1996). However, a study of dairy workers in Ireland
and New Zealand found that satisfaction with intrinsic and extrinsic rewards was a