2. 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

3. 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

4. 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

5. 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

6. Outline The Meaning of Money Measures of Money Attitudes The Money Ethic Scale The Use of the Money Ethic Scale in Research Conclusions

7. The Color of Money Color Size Shape Cross-Cultural Differences: History, Culture, People, National Pride, World View

8. 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).

9. The Meaning of Money Attract, Retain, and Motivate employees (Chiu, Luk, & Tang, 1998; Milkovich & Newman, 2002; Tang, Luk, & Chiu, 2000).

10. 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).

11. 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).

12. 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

13. 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).

14. 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…

15. 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).

16. 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.

17. The Meaning of Money-Hygiene Pearce (1987). New perspectives on compensation. Pfeffer (1998, May/June). Six dangerous myths about pay. Harvard Business Review.

18. 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

19. Pfeffer (1998) 4. Low labor costs are a potent and sustainable competitive weapon 5. Individual incentive pay improves performance 6. People work for money.

20. 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.

21. 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.

22. 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.

23. 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.

24. 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.

25. 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.

26. 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)

27. 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)

28. 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

29. The Meaning of Money If you double your employees’ pay, do they produce twice as much? Paid by the Hour vs. Paid by Salary

30. The Meaning of Money-Hygiene Extrinsic reward may undermine intrinsic motivation (Deci, 1971; Deci & Ryan, 1985).

31. 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)

32. The Meaning of Money Amabile (1998, September-October). How to kill creativity. Harvard Business Review. Technical Abilities Problem-Solving Skills Motivation Labor of Love

33. 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

34. 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.

35. The Meaning of Money Negative path between monthly income and subjective value of money. Higher incomes are related to lower marginal utility of money.

36. 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

37. 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).

38. The Meaning of Money- Materialism For materialistic individuals, possessions are believed to provide the greatest sources of satisfaction and dissatisfaction (265).

39. 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)

40. Time is Money Time $

41. 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.

42. The ABCs of Attitudes Three Components of Attitudes : Affective Behavioral Cognitive

43. 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.

44. 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

45. 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

46. 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.

47. 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.

48. The Money Ethic Scale 1. Tang (1992): Journal of Organizational Behavior. 2. Tang (1993): Journal of Organizational Behavior. 3. Tang & Gilbert (1995): Personality and Individual Differences 4. Tang (1995): Personality and Individual Differences, 5. Tang (1996): Psicologia E Lavoro (Italian)

49. 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).

50. 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

51. 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.

52. The Money Ethic Scale 14. Tang, Furnham, & Davis (in press). Journal of Managerial Psychology

53. Money and Related Research 15 Tang, Tang, Tang, & Dozier (1998). Journal of Compensation and Benefits. 16. Tang & Talpade (1999). Public Personnel Management. 17. Tang & Frost (1999). Journal of Compensation and Benefits. 18. Tang, Luk, & Chiu (2000). Compensation and Benefits Review.

54. Money and Related Research 19. Tang, Tang, & Tang (2000). Higher Education. 20. Tang & Tang (in press). International Journal of Organization Theory and Behavior.

55. MES Papers (Submitted) Tang & Kim: MES--Full-Time, Part-Time, Students Tang & Luna-Arocas: Money as a Motivator (Scale Development): 10 Factors: Budget, Evil, Equity, Success, Self- Expression, Social Influence, Power of Control, Happiness, Richness, & Motivator

56. MES Papers (Submitted) Luna-Arocas & Tang: Money Profiles-US- Spain Faculty Tang, Tang, & Luna-Arocas: Money Profiles -US Students Tang, Tillery, Lazarevski, & Luna-Arocas: Money Profiles-Macedonia Tang, Luna-Arocas, & Whiteside: Income & Life Satisfaction

57. MES Papers (Submitted) Tang, Luna-Arocas,Tang, & Sutarso: Does MES Moderate and Mediate. Regression Tang, Sutarso, Tang, & Luna-Arocas: A model of Pay Satisfaction (SEM) Tang, Sutarso, Tang, & Luna-Arocas: A model of Pay Satisfaction with Demographic Variables Tang, Luna-Arocas,Tang, & Sutarso: A model of Pay Satisfaction: The US vs. Spain, Male vs. Female

58. MES Papers Tang, Davis, Dolinski, Ibrahim, Sutarso, & Wagner (2000): Money Attitude, motives of helping behavior, organization-bases self-esteem, and organizational citizenship behavior. Tang, Luna-Arocas, & Quintanilla (2000) Materialism and Money Ethic endorsement

59. Cited in Many Languages Chinese. Chen (1987). Ours. English. Furnham & Argyle (1998). The psychology of money. Mitchell & Mickel (1999) Academy of Management Review. French. Charles-Pauvers & Urbain (1998). Laboratoire de recherche en sciences de gestion. Urbain (2000). Recherche et Applications en Marketing

60. Cited in Many Languages Spanish. Luna-Arocas (1998). Dinero, trabajo y consumo. Quintanilla (1997). Psicologia economica. Italian. Tang (1996). Psicologia e Lavoro. Russian. Fenko (2000). Psikhologicheskii Zhurnal. Arabic, Polish

61. Mitchell & Mickel (1999) The well-developed measures are those that have been developed more carefully and used more systematically. There are three of these: (1) the money ethics scale (Tang, 1992, 1993, 1995), (2) the money belief and behavior scale (Furnham, 1984; Furnham, Kirkcaldy, & Lynn, 1994), and (3) the money importance scale (Mitchell, Dakin, Mickel, & Gray, 1998) (p. 571).

62. A Cross-Cultural Study Australia, Austria, Belgium*, Brazil, Bulgaria*, Canada, Chile, China (?), Congo (Zaire), Cuba, Czech Republic, Egypt, France, Germany, Hong Kong*, Hungary*, India, Italy*, Japan, Macao, Macedonia*, Malta*, Malaysia, Mexico, Nigeria, Saudi Arabia, Oman*, Panama, Peru, Philippines*, Poland, Portugal, Romania, Russia, Singapore*, Slovenia*, South Africa*, South Korea, Spain*, Taiwan*, Thailand*, Turkey, Ukraine, the UK, the USA*, Venezuela, and other countries (Ireland and Ecuador).

63. The 30-Item Money Ethic Scale Good Affective Evil Affective BudgetBehavioral Achievement Cognitive Respect Cognitive PowerCognitive Tang (1992) Journal of Organizational Behavior

64. The 30-Item Money Ethic Scale Age, Sex (female)--Budget High Income--Achievement, not Evil Young People--Evil Protestant Work Ethic--Budget, Evil, Power Leisure Ethic--Good, not Evil, Achievement, Power

65. Study of Values (Allport, Vernon, & Lindzey,1970) Economic, Political--Achievement, Respect, Power Social, Religious--(-) Achievement, Power Religious--(-) Good, Respect Theoretical--Achievement Aesthetic--(-) Good

66. Money Ethic-Satisfaction Achievement--Low satisfaction with Work, Promotions, Supervision, Co-workers, and Overall Life Satisfaction. Power--Low satisfaction with Work, Pay, Co- Workers, Overall Life Satisfaction. Not Evil--Work Satisfaction Budget--Life Satisfaction, Supervision

67. University Students in Taiwan NTU Good--Irritation Evil--Work Ethic, Anxiety Achievement--Irritation, LOC-E, Sex (M), Work Ethic Respect--Irritation, Sex, Work Ethic, I-E Budget--Type A, Age (young) Power--I-E Tang (1993) Journal of Organizational Behavior

68. The 12-Item Money Ethic Scale EvilAffective BudgetBehavioral SuccessCognitive Achievement, Respect, Power, Good Tang (1995) Personality and Individual Differences.

69. The 12-Item Money Ethic Scale High Income: Money is not Evil. High MES: Male, Older, Type A Personality, Low--Pay Satisfaction, Self-Esteem, n Achievement, Social Value; High--Theoretical, Economic, Political Values, Stress, External LOC

70. The 6-Item Money Ethic Scale Budget Behavioral EvilAffective SuccessCognitive Tang & Kim (1999) Public Personnel Management

71. Exploratory Factor Analysis Promax Rotation Budget Evil Success 1. Budget.92.06-.00 2. Use.91 -.07.01 3. Root -.01.88.02 4. Evil.01.88-.02 5. Success-.16.00.87 6. Achievement.17 -.00.85

72. Inter-Factor Correlations BudgetEvil Success Budget-.10.05 Evil.02 Success

73. Confirmatory Factor Analysis Budget Evil Success 1. Budget.73 2. Use.93 3. Root.98 4. Evil.56 5. Success.64 6. Achievement.76

74. The 3 Factor, 6-Item Money Ethic Scale Independent, Low cross-loadings, Low inter-factor correlations Predictor of the linear combination of Altruism, Conscientiousness, Intrinsic job Satisfaction, Extrinsic Job Satisfaction, and Commitment.

75. Taiwan, US, & UK 6-item, 3-factor MES The Whole Sample: Poor fit Taiwan: Poor fit The USA: Good fit The UK: Poor fit CFA: Fit between the Model and the Data (theory driven) EFA: Data driven Tang, Furnham, & Davis

76. Full-Time, Part-Time Employees, and Non-employed Students The 6-Item Money Ethic Scales 265 Full-Time Employees 192 Part-Time Employees 270 Non-employed University Students Tang & Kim

77. Full-Time, Part-Time, Students Confirmatory Factor Analyses The Whole Sample: Poor Fit Full-Time Employees: Good Fit Part-Time Employees: Poor Fit Non-employed Students: Good Fit

78. Income F Full-Time F Age F Pay (JDI) F Education F Sex (M) F Success (MES) F Evil (MES) (-) F Part-Time F Marital-Status (M) F Sex (M) F Pay (JDI) F Promotion (JDI). F Tang & Kim

79. Life Satisfaction

80. The 15-Item Money Ethic Scale 207 University Faculty Liberal Arts Other Education Basic & Applied Sciences Mass Communications Business Tang, Luna-Arocas, & Whiteside (1997); Tang & Luna-Arocas (1999)

81. The 15-Item Money Ethic Scale EvilAffective BudgetBehavioral EquityCognitive SuccessCognitive MotivatorCognitive

82. Factor Budget I budget my money very well. I use my money very carefully. I pay my bills immediately to avoid interest or penalties. I do financial planning for the future.

83. Factor Evil Money undermines one’s ethical norms and standards of conduct. People perform unethical acts to maximize their monetary gains. Money is evil. Money (the love of money) is the root of all evil.

84. Factor Equity People on the same job should be paid equally (equality) Reverse Scored People on the same job should be paid based on merit (equity). Lower-level job with little responsibility should be paid less.

85. Factor Success Money is a symbol of success. Money represents one’s achievement

86. Factor Motivator Money is a motivator. I am motivated to work hard for money.

87. Faculty (The USA vs. Spain) 207 American and 102 Spanish Faculty Sex, age, education, marital status, race, length of service, income, the Money Ethic scale PWE (Blood, 1969), MSQ (Weiss et al., 1967), Pay Satisfaction Questionnaire (Heneman & Schwab, 1985) Life Satisfaction: Satisfaction of my personal/family life; Satisfaction of my life as a whole.

88. Faculty Income (The USA) Liberal Arts42,774 Other44,287 Education48,517 Basic & Applied Sciences44,566 Mass Communication48,861 Business70,099

89. Business Faculty (The USA) The Highest Income Factor Equity Factor Success Income > Personnel Record

90. Faculty Income F USA F Age F Equity F Sex (M)* F Budget F Education* F Spain F Work Experience F Education* F Evil (-) F Sex (M)*.

91. Faculty Life Satisfaction F USA F Marital Status (M)* F Budget F Success F Sex (M) F Education F Spain F Marital Status (M)* F Age.

92. Money Profiles Use the Money Ethic Scale to Classify People, Cluster Analysis Attitudes Toward Money Negative, Indifferent, Positive Low-------Median-------High Luna-Arocas & Tang

93. The Cluster Analysis Goal: Clusters of people with small within- cluster variation but large between-cluster variation. Researchers begin with an undifferentiated group and divide the group into subgroups that differ in meaningful ways.

94. Hierarchical Cluster Analysis Single Linkage Complete Linkage Average Linkage The Ward’s Method (Aldenderfer & Blashfield, 1984)

95. Hierarchical Cluster Analysis The nested tree structure of a dendrogram and the fusion coefficient are used to specify the concrete number of clusters.

96. Dendrogram F 1 _________I_________ F 2 I ____I____ F 3 ___ I____ I I F 4* __I__ I I I F 5 I I I I __I__ F 6_I_ _ I_ ___I____ ____I__ __I_ _I__ F iiiii iiiiiiii iiiiiiiiiiiiii iiiiiiiiiiiii iiiiiii iiiiiii

97. Fusion Coefficient Factor Analysis Scree Curve: The percentage of total variance accounted for by each successfully extracted factors. Fusion Coefficient: Similar Curve USA vs. Spain (see the next slide)

99. Quick Cluster K-means cluster analysis The hierarchical methods are complemented by the ability of the nonhierarchical methods to fine-tune the results by allowing the switching of cluster membership.

100. Three-Stage Procedure 1. Partitioning 2. Interpretation 3. Validation and Profiling

101. Partitioning: Order of Money Factors ANOVAs SuccessF = 171.94*** BudgetF = 81.51*** MotivatorF = 77.34*** EquityF = 15.45*** EvilF = 12.49*** The F tests should be used only for descriptive purposes. Bond, 1988).