1. 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

2. 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

3. 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

4. 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

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

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

7. 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).

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

9. 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).

10. 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).

11. 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

12. 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).

13. 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…

14. 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).

15. 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.

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

17. 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

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

19. 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.

20. 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.

21. 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.

22. Firestone Tires
If a consumer prefers to replace consumer advisory tires with competitor’s tires, Bridgestone/ Firestone will reimburse the consumer up to $ per tire.

23. 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.

24. 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.

25. 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)

26. 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)

27. 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

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

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

30. 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)

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

32. 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
At 500 ATS
At 5,000 ATS

33. 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.

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

35. 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

36. 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).

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

38. 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)

39. Time is Money $
Time

40. 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.

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

42. 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.

43. 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

44. 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

45. 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.

46. 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.

47. 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).
6. Tang (1996): Journal of Economic Psychology.
7. Luna-Arocas & Tang (1998). Revista de Psicologia del Trabajo y de las Organizaciones (Spainish).
8. Tang & Kim (1999). Public Personnel Management.
9. Tang, Kim, & Tang (2000). Human Relations.
10. Tang, Furnham, & Davis (2000). Personality and Individual Differences.
11. Tang, Singer, & Roberts (2000). Journal of Managerial Psychology.
12. Tang & Smith-Brandon (2001). Public Personnel Management.
13. Luna-Arocas & Tang, (2001). Revista de Estudios empresariales (Spanish).
14. Tang, Kim, & Tang, (2002). Journal of Managerial Psychology.
15. Tang, Furnham, & Davis (2002). International Journal of Organization Theory and Behavior.

48. The Love of Money Scale
Tang & Chiu (2003). Journal of Business Ethics.
Tang, Furnham, & Davis (2003). International Journal of Organization theory and Behavior.
Du & Tang (2003). Psychological Science (Chinese).
Tang, Luna-Arocas, & Whiteside (2003). Personnel Review.
Tang, Luna-Arocas, Sutarso, & Tang (2004). Journal of Managerial Psychology.
Luna-Arocas & Tang (2004). Journal of Business Ethics.
Tang, Tillery, Lazarevski, & Luna-Arocas (2004). Journal of Managerial Psychology.
Du, Xu, and Tang (2004). Journal of Hohai University (Chinese).
Tang, Luna-Arocas, & Sutarso (2005). Management Research: The Journal of the Iberoamerican Academy of Management.
Du & Tang (2005). Journal of Business Ethics.
Tang, Tang, & Luna-Arocas (2005). Personnel Review.

49. Money and Related Research
27. Tang, Tang, Tang, & Dozier (1998). Journal of Compensation and Benefits.
28. Tang & Talpade (1999). Public Personnel Management.
29. Tang & Frost (1999). Journal of Compensation and Benefits.
30. Tang, Luk, & Chiu (2000). Compensation and Benefits Review.
31. Tang, Tang, & Tang (2000). Higher Education.
32. Tang & Tang (2003). International Journal of Organization Theory and Behavior.
33. Tang & Weatherford (2004). Psihologia Resurselor Umane (Romanian).
34. Tang, Tang, & Tang (2004). International Journal of Educational Management.

50. Cited in Many Languages
Chinese,
English,
French,
Spanish,
Italian,
Romanian,
Russian, etc.

51. 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).

52. A Cross-Cultural Study
Australia, Belgium, Brazil, Bulgaria, China (2), Egypt, France, Hong Kong, Hungary, Italy, Macedonia, Malaysia, Malta, Mexico, Nigeria, Saudi Arabia, Oman, Peru, Philippines, Portugal, Romania, Russia, Singapore (2), Slovenia, South Africa, South Korea, Spain, Taiwan, Thailand, the USA, and other countries (Chile, India).

53. The 30-Item Money Ethic Scale
Good Affective
Evil Affective
Budget Behavioral
Achievement Cognitive
Respect Cognitive
Power Cognitive
Tang (1992) Journal of Organizational Behavior

54. 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

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

56. 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

57. 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

58. The 12-Item Money Ethic Scale
Evil Affective
Budget Behavioral
Success Cognitive Achievement, Respect, Power, Good
Tang (1995) Personality and Individual Differences.

59. 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

60. The 6-Item Money Ethic Scale
Budget Behavioral
Evil Affective
Success Cognitive
Tang & Kim (1999) Public Personnel Management

61. Exploratory Factor Analysis
Promax Rotation Budget Evil Success
1. Budget
2. Use
3. Root
4. Evil
5. Success
6. Achievement

62. Inter-Factor Correlations
Budget Evil Success
Budget
Evil
Success

63. Confirmatory Factor Analysis
Budget Evil Success
1. Budget
2. Use
3. Root
4. Evil
5. Success
6. Achievement

64. 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.

65. 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

66. 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

67. 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

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

69. Life Satisfaction

70. 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)

71. The 15-Item Money Ethic Scale
Evil Affective
Budget Behavioral
Equity Cognitive
Success Cognitive
Motivator Cognitive

72. 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.

73. 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.

74. 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.

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

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

77. 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.

78. Faculty Income (The USA)
Liberal Arts 42,774
Other ,287
Education ,517
Basic & Applied Sciences 44,566
Mass Communication 48,861
Business ,099

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

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

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

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

83. 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.

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

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

86. Dendrogram 1 _________I_________ 2 I ____I____ 3 ___ I____ I I
iiiii iiiiiiii iiiiiiiiiiiiii iiiiiiiiiiiii iiiiiii iiiiiii

87. 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)

89. 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.

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

91. Partitioning: Order of Money Factors
ANOVAs
Success F = ***
Budget F = ***
Motivator F = ***
Equity F = ***
Evil F = *** The F tests should be used only for descriptive purposes.
Bond, 1988).