In 1976, Locke presented the Value Percept Theory which states that the value provided by a job plays a key role in influencing the job satisfaction of employees. To elaborate, he states that the job satisfaction of an employee will be dependent on the fact that whether the job delivers the value that matters to the employee. The whole theory is based on the perspective that employee holds towards their job and based on the perspective the employee decides the value of the job.
The theorist states that many employers and employees believe that monetary and promotional benefits are the biggest drivers of the value of job satisfaction but Locke believed that employees' perspective toward their work has the biggest and strongest correlation with overall job satisfaction.
Moreover, as stated in equity theory, be it either monetary, promotional or employee perspectives coming into play, the value being put in by employees must reflect what is received by them from the organization as an output.
To further elaborate, Locke presented 5 job facets that relate the most to job satisfaction.
Supervision satisfaction is based on employees' perspectives towards their boss and the management approach used towards them. For example, if the employer uses the micromanagement approach, then the employees get disengaged and the value of the job satisfaction decreases.
The value in pay satisfaction is based on the pay employees want and what employees received. The closer the incentive of the employee is to the desired amount, the more the employee values the job and hence, is more satisfied with the job.
In this category, employees are more concerned about their promotion in a workplace and always want that their workplace should practice fair and frequent promotions. The main cause behind this is that promotion offers better monetary benefits, enhanced recognition, and provides personal growth. Hence, the better the promotion policies of the organization, the more satisfied the employees.
Co-worker satisfaction is based on the perception of employees towards their team members or colleagues. The value of this category will be dependent on the interactiveness, and support provided to the employees by their team members.
Last but not the least, the job satisfaction from the work itself means the employee's perspective towards their work and obligations in the workplace. Employees usually dislike repetitive work and duties that do not provide them with personal growth. Hence, they fail to value their work.
Probing further the theory states that based on these job facets, employees decide the value that is derived from their jobs. In addition, Locke also provided the formula for calculating the job satisfaction of employees.
S = (VC - P) × V
Where S stands for satisfaction, VC stands for value content or the desired amount, P refers to the perceived amount of job value and V stands for the importance of the job value of the person.
To simplify, we can also say that,
Satisfaction = (want - have) × importance
After discussing the theory, the next section will shed light on the implication of the theory in the workplace. So, let us move ahead without any further ado.
The first and foremost step of implying this theory is to identify the significant job facets that influence the members of the workplace the most. To elaborate, this step will include the analysis of employees’ behavior, and out of the 5 factors stated above, which factor satisfies the team maximum. Analyzing the behavior will assist in resting effective strategies for the efficient and effective required transformations.
After identifying the next step will be to boost the factors that are demotivating the employees and can be transformed and to accomplish that, the following steps can be taken by the employers or managers.
Moving ahead, implementing this theory in a workplace brings many benefits along. Hence, the given below are some of the causes to implement this theory in a workplace.
Once the employees are attracted to the reward they value, they will invest their 100 percent to achieve the desired outcome for the reward. Hence, implementing the theory will assist in making the employees more productive and efficient.
With the intent of earning a favorable reward, the employees will engage more effectively in performing the assigned task. Attainment of the desirable reward will assist in gaining the loyalty of the employees for a longer period of time. Henceforth, this theory will assist in retaining and engaging employees with the organization.
Keeping the employees happy and satisfied by implementing the theory will assist in enhancing the reputation of the company in the eyes of consumers and will also enhance the employer brand which will help in attracting the best talent for the future as well.
On the contrary, along with many positive benefits, there are some limitations that need to be considered while implementing this theory in the workplace.
Moving ahead, below given illustration of the theory with an example will assist in comprehending the theory in a better way.
Netflix Inc. is an America-based OTT platform with a net worth of $176.07 billion as of 2021. Under the leadership of CEO Reed Hastings, the employees of the company are really happy and satisfied.
Implying the Value Percept Theory, we can categorize the perks of being an employee of Netflix as following
Key takeaway - With the implication of the Value Percept Theory in Netflix, we concluded how various factors of Netflix contribute to the satisfaction of employees in the organization.
Job satisfaction is essential as it affects employee motivation, productivity, and retention. Satisfied employees are more likely to be engaged and committed to their work, leading to better overall performance.
To address limitations, organizations can complement the theory with other models of job satisfaction, consider individual needs and preferences, and examine the impact of external factors on employee satisfaction.
The theory acknowledges that both intrinsic (related to internal satisfaction from the work itself) and extrinsic (such as pay and benefits) factors contribute to job satisfaction. Employees' perceptions of these motivational factors influence their overall job satisfaction.
