The rewards offered by competing airlines tend to be similar, reflecting conditions of competitive parity. By contrast, choice is heavily influenced by habit and situational influences, suggesting that airlines need to address these factors directly. The talk concludes with a call to acknowledge the prevalence of competitive parity, as a counter to the belief that product differentiation is the norm. We estimate the determinants of job satisfaction including the influence of four types of payment schemes. Workers on profit sharing and bonus schemes report greater job satisfaction than those on straight time.
Workers paid by commission report similar job satisfaction.
Workers paid by piece rates report substantially lower job satisfaction, a result particularly strong for women. We suggest the piece rate results may follow from the interlocking forces of gender, home responsibilities and production technologies. Copies of the Paper can be picked up from the Department of Management Office, 5th Floor Babel Building, The University of Melbourne.