Extrinsic and Intrinsic Job Factors: Motivation and Satisfaction in a Developing Arab Country - the Case of Lebanon

IntroductionFrom a socio-economical perspective, Maslow's needs gratification theory of well-being has put forward a universally applicable hierarchy of needs based on the idea that "man is a continually wanting animal. " That is, one will be continuously striving for more than what he/she already has (Maslow, 1943: 370). Motivation has always been an important element on managers' agendas as well as the employees. In order for a company to be successful, it needs employees who are dedicated to the achievement of organizational goals and have a strong sense of loyalty to the organization (Molander, 1996). The pioneer work of Herzberg, Mausner, and Snyderman's (1959) on the model of motivation and hygiene factors inspired and paved the way towards numerous research studies on intrinsic and extrinsic job characteristics and job satisfaction. Regardless of the nature of the work, an employee's job satisfaction is influenced by the attitude he or she has towards the job (Herzberg, Mausner, & Snyderman, 1999). Rewards at work, whether financial (Vandenberghe & Tremblay, 2008) or nonfinancial (Amabile, Hill, Hennessey, and Tighe, 1994) are considered as important predictors of attitudes and behavior at work.Cross national studies have studied motivation in different parts of the world with some stressing the differential factors between poor and more developed countries (Huang & Van de Vliert, 2003). Studies show that in poorer countries (Adigun & Stephenson, 1992; Kanungo, 1990) intrinsic job characteristics such as recognition, autonomy, challenge, and the nature of work itself are less closely related to job satisfaction. On the other hand, extrinsic job characteristics like salary, job security, and working conditions, and environment are more closely related to job satisfaction.Reflecting on such crucial studies done on the subject of motivation and in an attempt to understand the Lebanese work environment better, this study examines the issue of whether extrinsic job characteristics are more associated with job satisfaction and motivation than intrinsic job factors. The paper examines both extrinsic and intrinsic job characteristics from a socio-economic perspective to understand their underlying effects on employees. Academics have continuously called for greater research in the Middle East region given the lack of empirical studies in this field (Budhwar & Mellahi, 2006; Abdulla, Djebarni, and Mellahi, 2011). Moreover, this paper will also extend its scope to examine the possible conditions where intrinsic job factors can lead to motivation over and above extrinsic job factors. Although research shows that extrinsic job factors play a greater role on motivation in developing countries, Maslow's theory argues that intrinsic factors will have a motivating impact if the extrinsic job factors are satisfied at work. Accordingly, we aim to explore this assumption in Lebanon, that is, whether intrinsic job factors have a stronger impact on motivation than extrinsic job factors when the latter factors are present.In the following pages, the literature review and the hypothesis will be presented. Next, the methodology will be reviewed. Finally, the paper ends with the results, discussion, and management implications.Literature ReviewThe word motivation originally comes from the Latin word movere, meaning to move (Kreitner, 2001). Human motivation is a critical aspect in the field of organizational behavior and psychology (Benabou and Tirole, 2003). The importance of motivation in organizations is explained by the equation put forward by Maier (1955): Job Performance = Ability x Motivation. Motivation represents "those psychological processes that cause arousal, direction, and persistence of voluntary actions that are goal oriented (Mitchell, 1982: 81). Another definition put forward for motivation is that it is a psychological development that causes the stimulation, direction and persistence of behavior (Luthans, 2010). …