Compensation, esteem valence and job performance: an empirical assessment of Alderfer's ERG theory

Improving the job performance of employees has been the focus of many motivation theories, especially the need theories. These theories have however been questioned because of a lack of research on the causal relationship between need satisfaction and job performance. Research on the link between the need satisfaction-job performance relationship and individual personality differences among people has also been neglected. This study addresses these research gaps as far as the intervening influence of personality variables on the need satisfaction-job performance relationship is concerned. The present study investigates the influence of need satisfaction (as suggested by the Alderfer theory) on self-esteem (the personality trait) and the influence of self-esteem on performance intention (the surrogate measure for job performance) of top managers and frontline employees. The empirical results show that esteem as a personality variable exerts a significant influence on the job performance of both top managers and frontline employees. These and other findings provide important guidelines for managers on how to address the motivational needs of top managers and frontline employees in order to improve their job performance.