The Meaning of Money, The Money Ethic Scale, and Money Profiles Thomas Li-Ping Tang, Ph.D. Middle Tennessee State University Presented at Hong Kong Baptist University
The Meaning of Money, The Money Ethic Scale, and Money Profiles Thomas Li-Ping Tang, Ph.D. Middle Tennessee State University Presented at National Taiwan University
The Meaning of Money, The Money Ethic Scale, and Money Profiles Thomas Li-Ping Tang, Ph.D. Middle Tennessee State University Presented at University of Valencia
The Meaning of Money, The Money Ethic Scale (MES), and Research Using the MES Thomas Li-Ping Tang, Ph.D. Middle Tennessee State University Presented at University of Nantes
Outline The Meaning of Money Measures of Money Attitudes The Money Ethic Scale The Use of the Money Ethic Scale in Research Conclusions
The Color of Money Color Size Shape Cross-Cultural Differences: History, Culture, People, National Pride, World View
The Meaning of Money The meaning of money is “in the eye of the beholder” (McClelland, 1967, p. 10). Money is a motivator (Gupta & Shaw, 1998; Lawler, 1981). Money is a hygiene factor (Herzberg, Mausner & Snyderman, 1959; Kohn, 1998; Pfeffer, 1998).
The Meaning of Money Attract, Retain, and Motivate employees (Chiu, Luk, & Tang, 1998; Milkovich & Newman, 2002; Tang, Luk, & Chiu, 2000).
The Meaning of Money Money is the instrument of commerce and the measure of value (Smith, 1776/1937). Money is an important factor in almost everyone’s life (Shaw, 1905; Wernimont & Fitzpatrick, 1972). The paucity of research on money is caused by a taboo associated with money (Furnham, 1984).
The Meaning of Money Money always represents or signifies something other than itself (Crump, 1981). One is not interested in money, but in what money will buy (Crump, 1981). In America, money is how we keep score (Rubenstein, 1981). Money makes one happy (will reduce pain). People want to be rich and in control (Tang & Luna-Arocas, 1999).
The Meaning of Money Money can be investigated from many perspectives (economics, anthropology, sociology, psychology, and political science) (Doyle, 1992). American Behavioral Scientist. People’s attitudes toward money can be perceived as their “frame of reference” in which they examine their everyday lives (Tang, 1992). OB/HRM
The Meaning of Money-Motivator Financial incentives do improve performance quantity and do not erode intrinsic motivation. However, the jury is till out regarding the impact of financial incentives on performance quality. (Gupta & Shaw, 1998).
The Meaning of Money-Motivator Clark (1999, November 1). Why it pays to quit. U.S. News & World Report. Money TALKS. Money is behind many of the common nonfinancial explanations for changing jobs (74). Money talks, and OJ…
The Meaning of Money-Hygiene Money is a Hygiene factor (Herzberg, Mausner & Snyderman, 1959). Salary has more potency as a job dissatisfier than as a job satisfier (82). In the lows salary is found almost three times as often in the long-range as in the short-range sequences (82).
The Meaning of Money-Hygiene Others agree with Herzberg: Cameron & Pierce (1994). Review of Educational Research. Kohn (1993, September/October). Harvard Business Review. Kohn (1998, March/April). Compensation and Benefits Review.
The Meaning of Money-Hygiene Pearce (1987). New perspectives on compensation. Pfeffer (1998, May/June). Six dangerous myths about pay. Harvard Business Review.
Pfeffer (1998): Six Dangerous Myths About Pay 1. Labor rates and labor costs are the same thing 2. You can lower your labor costs by cutting labor rates 3. Labor costs constitute a significant proportion of total costs
Pfeffer (1998) 4. Low labor costs are a potent and sustainable competitive weapon 5. Individual incentive pay improves performance 6. People work for money.
Pfeffer (1998) Labor costs are only the most immediately malleable expense. Higher “labor rates” (pay level) may lead to lower “labor costs” due to employees’ high productivity.
The Meaning of Money-Hygiene People do not work “primarily for money” (Pfeffer, 1998: 111). Individual incentive pay undermines performance—of both the individual and the organization.
Firestone Tires NHTSA has filed more than 2,000 complaints about Firestone tires linked to 103 traffic deaths. Firestone has recalled 6.5 million 15-inch radial tires, sold as P235/70R15 Wilderness, ATX and ATXII models and widely used on the mid-size Ford Explorer since it appeared in 1990.
Firestone Tires If a consumer prefers to replace consumer advisory tires with competitor’s tires, Bridgestone/ Firestone will reimburse the consumer up to $140.00 per tire.
Firestone Tires Recall of Firestone Tires cut Ford profits by 7 percent (Knight-Ridder/Tribune Business News, Oct. 18, 2000) The controversial recall of Firestone tires on millions of Ford Explorer sport-utility vehicles has cost the automaker $500 million so far.
Consequences Ford’s quarterly sales in Britain dropped 15 percent while sales in Germany were down 8 percent. Ford also lost $77 million in its Canadian-Mexican operations and $64 million in South America.
Consequences Saudi Arabia bans all Firestone Tires. (Investment News, 10/2/2000) Ford recalled Firestone Tires in Asia starting in May (The Asian Wall Street Journal Weekly, 9/18/2000)
Consequences For Ford CEO Nasser, damage control is the new ‘job one’, tire crisis is likely to be either maker or breaker of his corporate career (The Wall Street Journal, 9/11/2000)
Consequences It will also mean less money for the 156,000 plus hourly and salaried employees at Ford who have grown accustomed to ever-growing profit-sharing and bonus checks. Potential damages and settlements for the 100-plus personal injury and class-action suits filed against the automaker *Union on strike, replacement workers
The Meaning of Money If you double your employees’ pay, do they produce twice as much? Paid by the Hour vs. Paid by Salary
The Meaning of Money-Hygiene Extrinsic reward may undermine intrinsic motivation (Deci, 1971; Deci & Ryan, 1985).
The Meaning of Money Intrinsic, self-determination, freedom from control, Play, Origins, Masters of Money Extrinsic, performance standards, external feedback, Work, Pawns, Slaves of Money (Amabile, DeJong, & Lepper, 1976; DeCharms, 1976; Lepper & Greene, 1975)
The Meaning of Money Amabile (1998, September-October). How to kill creativity. Harvard Business Review. Technical Abilities Problem-Solving Skills Motivation Labor of Love
The Meaning of Money Brandstatter & Brandstatter (1996). Journal of Economic Psychology. ATS Austrian Shillings, US$1 = ATS 13.96 Double Joy vs. Double Anger At 50 ATS 6.3 4.4 At 500 ATS 5.7 2.8 At 5,000 ATS 3.2 2.2
The Meaning of Money People are more sensitive for losses than for gains. It takes a significantly higher amount of money to make people happy than to make them unhappy.
The Meaning of Money Negative path between monthly income and subjective value of money. Higher incomes are related to lower marginal utility of money.
The Meaning of Money Higher incomes are related to lower marginal utility of money. The Value of US$1,000,000 to a person Who is making US$1,000,000 vs. Who is making US$100,000
The Meaning of Money-Materialism Belk (1985). Materialism. Journal of Consumer Research. Materialism is a devotion to material needs, desires, and the importance a consumer attaches to worldly possessions (265).
The Meaning of Money-Materialism For materialistic individuals, possessions are believed to provide the greatest sources of satisfaction and dissatisfaction (265).
The Meaning of Money-Materialism Low and high materialists are likely to differ in the meaning of money holds for them and in money-related attitudes (Richins & Rudmin, 1994, Journal of Economic Psychology, 15: 222)
Time is Money $ Time
Time is Money My account is worth every penny he charges because of the time he saves me. This year, for example, he probably saved me five to ten years in prison.
The ABCs of Attitudes Three Components of Attitudes : Affective Behavioral Cognitive
Measures of Money Attitudes-1 Burgoyne (1990): Money in marriage. Doyle (1992): American Behavioral Scientist. Fank (1994): Money handling inventory, PAID. Furnham (1984): Many sides of the coin: PAID. Furnham & Argyle (1998): The psychology of money.
Measures of Money Attitudes-2 Goldberg & Lewis (1979): Money madness: The psychology of saving, spending, loving, and hating money. Haraoka (1990): Money & value orientation, PJSSP. Luna-Arocas, Quintanilla, & Diaz (1995), EAD-6, IAREP. Luna-Arocas (1998). Dinero, Trabajo y Consumo. PROMOLIBRO
Measures of Money Attitudes-3 Lynn (1991): The secret of the miracle economy. McClure (1984): Money attitudes and overall pathology, PAQJHB. Mitchell & Mickel (1999). The meaning of money:Money Importance Scale,AMR. Opsahl & Dunnette (1966): The role of financial compensation in industrial motivation, PB
Measures of Money Attitudes-4 Quintanilla (1997). Psicologia Economica. McGraw Hill. Richins & Rudmin (1994). Materialism, JEP. Rubenstein (1981): Money & self-esteem, relationships, secrecy, envy, satisfaction, PT. Thierry, the meaning of pay, in Erez & Thierry (Eds.) Work motivation.
Measures of Money Attitudes-5 Wernimont & Fitzpatrick (1972): The meaning of money, JAP. Yamauchi & Templer (1982): Money attitude scale, JPA. Zelizer (1989): The social meaning of money: Special monies, AJS. Zuckerman (1983): Sensation seeking.
The Money Ethic Scale 1. Tang (1992): Journal of Organizational Behavior. 2. Tang (1993): Journal of Organizational Behavior. 3. Tang & Gilbert (1995): Personality and IndividualDifferences 4. Tang (1995): Personality andIndividual Differences, 5. Tang (1996): Psicologia E Lavoro (Italian)
The Money Ethic Scale 6. Tang (1996): Journal of Economic Psychology 7. Luna-Arocas & Tang (1998). Revista de Psicologia del Trabajo y de las Organizaciones (Journal of Work and Organizational Psychology)(Spainish).
The Money Ethic Scale 8. Tang & Kim (1999). Public Personnel Management 9. Tang, Kim, & Tang (2000). Human Relations. 10. Tang, Furnham, & Davis (2000). Personality and Individual Differences
The Money Ethic Scale 11. Tang, Singer, & Roberts (2000). Journal of Managerial Psychology. 12. Tang & Smith-Brandon (2001). Public Personnel Management. 13. Tang, Furnham, & Davis (in press). International Journal of Organization Theory and Behavior.