Theoretical Framework on job satisfaction and employee performance
BUSI 240-Organizational Behavior 1
Liberty University
2022
Theoretical Framework
Equity Theory
The equity theory was conceptualized by John Stacey Adams in 1963 and seeks to explain
employee motivation in regards to how they perceive the organization treats them in the
workplace (Skiba, & Rosenberg, 2011). The theory proposes that motivation for an
employee is not purely a function of the rewards the individual attains. According to the
equity theory, motivation in the workplace is a function of how the employees view their
ratio of outcomes to the inputs. This implies that employees compare the rewards they
receive from working in the organization in relation to the effort they put in the job.
Moreover, employees view their ratio of outcomes to inputs in relation to the ratio of
outcomes to inputs of their referents (Skiba, & Rosenberg, 2011). Therefore,
employees compare their ratio of outcomes to inputs and compare with that of their peers
to tell whether they are being treated fairly by the organization in which they work. Apart
from their peers in the organization, employees may also have other referents to compare
with including family members and persons with similar positions but in different
organizations. On the other hand, employees may evaluate how well they meet their
individual needs with their current level of remuneration in relation to their pay history or
consider the compensation plan existing in the organization.
According to the equity model, employees can distinguish between an over-reward and an
under-reward. Therefore, when the employees perceive an under-reward which also
represents inequity, they are likely to adopt an action that is meant to restore equity (Skiba,
& Rosenberg, 2011). One of the most significant methods that employees are likely to take
in ensuring equity is to reduce the effort they put in their jobs. On the other hand, the
employees may request an increase in rewards for the effort they put into the job and this
translates to negotiation for increase in wages or bonuses (Skiba, & Rosenberg, 2011). The
equity theory proposes that if equity is not restored through an increase in outcomes or
reduction of inputs then the employee is inclined to abandon their job positions. The equity
theory is linked with this study as it helps define the particular behaviours that affect
performance exhibited by employees in regards to their level of satisfaction. The equity
theory concept is linked to the variables of personal fulfilment and economic aspects in this
study. Moreover, the equity theory is directly linked to this study as it helps explain the
course of employees in the organization and the correlation between their job satisfaction
and performance.
Herzberg’s Two Factor Theory
Herzberg conducted a study in the twentieth century that sought to explore job satisfaction
among different professions in Pittsburg namely engineers and accountants (Evans &
Olumide-Aluko, 2010). Herzberg came to the conclusion that it was scientifically wrong to
assume that variables in the opposing state were necessarily operating as two different
ends of one continuum. Consequently, Herzberg conceptualized the two-factor theory also
called the motivation-hygiene theory. The two-factor theory is premised on the fact that
there exist two distinct continua on which to place job satisfaction and dissatisfaction
(Evans &Olumide- Aluko, 2010). This is because the factors that promote job
satisfaction are different from those that bring about job dissatisfaction.
Herzberg two-factor theory proposes that when job satisfaction factors reduce, the
individual employee only moves to a neutral state of job satisfaction otherwise termed as
‘no satisfaction’ and this is not necessarily a state of job dissatisfaction (Evans, &
Olumide- Aluko, 2010). On the other hand, whenever the factors leading to dissatisfaction
for the employee are reduced, the affected individual moves to a state ‘no dissatisfaction’
or neutral state of dissatisfaction rather than a state that can be described as satisfaction
(Richard, 2012).
Herzberg’s theory identifies motivation factors and hygiene factors that affect the
satisfaction level of employees in the workplace. Motivation factors include aspects that
promote job satisfaction and these include achievement, responsibility and career
advancement, recognition and the work itself (Evans, & Olumide-Aluko, 2010). Such
factors are intrinsic and serve as the only factors that motivate individuals to work and also
gain job satisfaction. On the other hand, hygiene factors are extrinsic to work performed
and includes salary, interpersonal relations, working conditions, supervision and
administrative policies in the organization (Saglam, 2008).
Therefore, by applying the assumptions of the theory to this study one is able to understand
the changes in job satisfaction of employees based on the particular dimension explored.
Herzberg theory is linked to the four job satisfaction dimensions that form part of this
research. Herzberg theory is relevant to the study as it explains the motivating factors that
guide employees in the telecommunication sector.
Expectancy Theory of Motivation
The expectancy theory of motivation was proposed by Vroom (1964) and it provides a
theoretical basis for developing a conceptual framework of motivation together with a
measurable mathematical model (Hsiu-Li et al., 2011). The theory suggests that the
expenditure of a person’s effort is determined by the expected outcomes coupled with the
value placed in such outcomes by the individual. The determination of the amount of effort
individuals exert is based on a systematic analysis of the value of rewards expected from
the process, the probability that rewards will be generated from the outcomes and the
probability of attaining the outcomes through individuals’ efforts and actions (Hsiu-Li et
al., 2011).
The expectancy theory by Vroom (1964) posits that individual employees in the
organization will perform different tasks if they are expected, if they have the ability, if
they have an opportunity to do the task and if they believe that their efforts in the tasks will
be rewarded (Johnson, 2009).Subsequently, employees will be more productive when they
deem the reward to be commensurate with their efforts. The employee must be provided
with sufficient opportunity to develop the specific work output and this is reliant on
favourable circumstances to achievement of the task. The employee must also have the
ability in terms of skills and expertise to perform the task.
Johnson (2009) asserts that instrumentality of performance must exist whereby the worker
is be able to see the relationship between performing the task and receiving a particular
outcome. Furthermore, according to the theory, a reward-cost balance must exist whereby
the work output is deemed appropriate by the employee (Johnson, 2009).According to
Hsiu-Li et al., (2011) the expectancy theory is a predictor of various variables including:
Employee Performance, job effort, job satisfaction, occupational choice, leadership
behaviour and effectiveness. Subsequently, the theory is applicable to the current study as
it is a predictor of the main independent variable job satisfaction and the dependent
variable employee Performance.
