Job Satisfaction And Marginal Rate Of Substitution

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1 INTRODUCTION There are a few factors that determine an individual’s well-being as essential as income. Income is paramount to live a sufficient lifestyle for self and those who are dependent on us. Income is a stable aspect of job to the workers, organizations and the society in general. Income has huge role to play in determining the behaviors, attitude and perceptions of individuals in an organization and this can be a major driver of organization behavior. Using utility theory, in particular the concepts of marginal utility and marginal rate of substitution the author analyzes how the job satisfaction and wages of family employees differ from those of regular employees. The objective is to infer that the family employees have more job satisfaction than regular employees while receiving lower wages. Income can cause both positive and negative affect work and family balance. The effects of income has not been widely discussed as one of the major contributor to organizational behavior topic and instead topics such as monetary incentives and pay-for-performance schemes have been documented exhaustively. Finally, some (e.g. Lea & Webley, 2006) have argued that the psychology of money is a visceral one, exhibiting similarities to the effects of other visceral influences on human behavior such as hunger and thirst and, as Loewenstein (1996) notes, visceral influences are often underestimated by individuals, partly because people tend to forget how important they were in
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