The organizational goal and work effort: an efficiency wage model |
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| Authors: | Chi-Hsin Wu Chia-Ying Liu |
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| Affiliation: | (1) Department of Economics, National Chengchi University, No. 64, Sec. 2, Jhihnan Rd., Wunshan District, Taipei City, 11605, Taiwan, ROC;(2) Department of Economics, Graduate Institute of Finance and Economics, Aletheia University, No. 32, Chenli St., Tamsui, Taipei, 25103, Taiwan, ROC |
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| Abstract: | This paper sets up an efficiency wage model which combines goal-attainment theory and the expectancy-valence approach. Taking account of the psychological work motivation, we find that the aspiration for goal attainment may be a substitute for unemployment as an instigator of work motivation in full employment. In addition, since raising the firm’s goal has a diverse impact on the high and low need-for-achievement workers, a higher goal-setting does not appear capable of increasing worker effort within firms. This finding reconciles the conflicting experimental results in industrial psychology literature. |
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| Keywords: | Organizational goal Efficiency wages Work effort Expectancy valence |
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