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The moderating role of individual-difference variables pensation research
Karen E. Flaherty
Statement of hypotheses
In the following discussion, we present study hypotheses. Our hypotheses are broken into two distinct sections. First, we focus on the interplay between the individual-level variables pany pay mix. The individual-level variables are expected to affect the relationship between pay mix and motivation in very different ways. For instance, we argue that career stage will interact with pay mix to affect expectancies and instrumentalities of the salespeople. Second, we argue that risk attitudes are expected to interact with pay mix to affect valences for pay increases.
Career stage and pay mix
Cron et al. (1988) hypothesized that career stage influences the valences, expectancies, and instrumentalities of salespeople and found support for some of the hypotheses. However, they did not consider possible interactions between career stage and anization’s pay mix. On the basis of this literature, as well pensation research and expectancy theory, we develop several hypotheses concerning salespeople’s valences for pay increases, expectancies, and instrumentalities in each career stage and with different pay mix policies.
Valence. Valence refers to the emotional orientations people hold with respect to rewards such as money, promotions, or even satisfaction (Vroom, 1964). According to expectancy theory, rewards may be intrinsic to the salesperson (. personal development) or they may be extrinsic rewards (. pay increases, promotion, and recognition). Past research indicates that valences for rewards influence the
effectiveness of pensation programs (Lee, 1998). This work has looked at valence for reward as a possible moderator in this relationship.
Past research examining the influence of career stage on reward valences has not been fully supported (. Cron et al., 1988). Not surprisingly, anization’s pay policy or governance struct