Undergraduate Psychology Research Methods Journal


There is no argument that employee morale has an effect on an employees production and job performance. I want to see if pay ties in with employee morale and research whether there is a relationship between pay and job performance. I find myself often saying things like "They don't pay me for this" in my workplace which leads me to believe that if people were paid more they would be willing to do more. Job satisfaction is so important because it is one of the three most important predictors of overall well- being (Judge & Watanabe, 2000). Sousa-Poza (2000) states that job satisfaction depends on the balance between inputs, such as effort and education, and outputs, such as pay, benefits, and working conditions. If there is equity between the two then the employee will have high levels of job satisfaction. The 1997 International Social Survey Program (ISSP) collected data from 21 different countries regarding job satisfaction. The results indicated that overall each country’s job satisfaction is high, but that job satisfaction has decreased in the past ten years. Having an interesting job and a good relationship with one's boss, not money, had the largest effect on job satisfaction. Having an exhausting job has the most negative effects on job satisfaction (Sousa-Poza, 2000). I hypothesize that higher pay results in higher performance. The idea of equity supports my hypothesis. People put in what they get out and if people get more out then they will put more in.

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