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Thomas Li-Ping Tang

The Meaning of Money

Из презентации Т. Танга к какой-то конференции.


Money is an important factor in the lives of all of us.

One can not live without money. It applies to modern citizens in all over the world.

Money is the instrument of commerce and the measure of value (Smith, 1776/1937).

The meaning of money is “in the eye of the beholder” (McClelland, 1967, p. 10).


Money is the Measure of Value.

Who has more value?

1. An Economist Eugen Bohm Bawerk.

2. A Psychologist Sigmund Freud.

3. An Artist Moritz M. Daffinger.


In Austria

Austrian Schillings (ATS)

US$1 = ATS 15,53 (1/1/2002)

An Economist — ATS 100

A Psychologist – ATS 50

An Artist — ATS 20

The Value is on the Face of ATS!? Who has the most money?


The Meaning of Money: Theory.

Money is a motivator (Gupta & Shaw, 1998; Lawler, 1981; Locke, Feren, McCaleb, Shaw, & Danny, 1980: 381).

Money is a hygiene factor (Herzberg, Mausner & Snyderman, 1959; Kohn, 1998; Pfeffer, 1998).

People’s attitudes toward money can be perceived as their “frame of reference” in which they examine their everyday lives. (Tang, 1992).


*Attract, Retain, and Motivate employees.

*Achieve Company Goals (Chiu, Luk, & Tang, 1998; Milkovich & Newman, 2002; Tang, Kim, & Tang, 2000; Tang, Luk, & Chiu, 2000).

Performance Improvement

4 Methods:

1. Participation

2. Job Design

3. Goal Setting

4. Contingent Payment

The Meaning of Money-Motivator Performance Improvement

Participation: 0%

Job Design: 9%

Goal Setting: 16%

Contingent Payment: 30%.

Movements vs. Intrinsic Motivation.

What gets measured gets done (Inc., 1998, June)


No other incentive or motivational technique comes even close to money (Locke, Feren, McCaleb, Shaw, & Danny, 1980: 381).


The Meaning of Money - Hygiene

Money is a Hygiene factor (Herzberg, Mausner & Snyderman, 1959).

0,0 point escalates Salary has more potency as a job dissatisfier than as a job satisfier (82).

In the lows salary is found almost three times as often in the long-range as in the short-range sequences (82).

Cameron & Pierce (1994). Review of Educational Research.

Kohn (1993, September/October). Harvard Business Review.

Kohn (1998, March/April). Compensation and Benefits Review.

Pearce (1987). New perspectives on compensation.

Pfeffer (1998, May/June). Six dangerous myths about pay. Harvard Business Review.

Money always represents or signifies something other than itself (Crump, 1981).

One is not interested in money, but in what money will buy (Crump, 1981).


The ABCs of Money Attitudes

Affective: Do you “love or hate” money?

Behavioral: What do you “do” with your money?

Cognitive: What does money “mean” to you?


Measures of Money Attitudes-1

Burgoyne (1990). Money in marriage.

Janda (1998). Love & Sex Tests.

Holbrook, MA: Adams Media Corp. MES


Measures of Money Attitudes-2

Bailey & Gustafson (1986, 1991). Money beliefs and behaviour scale. Handbook of Behavioral Economics.

Bailey & Lown (1993). Journal of Consumer Studies and Home Economics.

Bailey, Johnson, Adams, Lawson, Williams, & Lown (1994). Consumer Interests Annual.

Doyle (1992). American Behavioral Scientist.

Fank (1994). Money handling inventory, PAID.


Measures of Money Attitudes-3

Furnham (1984). Many sides of the coin: PAID.

Furnham & Argyle (1998). The psychology of money.

Goldberg & Lewis (1979). Money madness: The psychology of saving, spending, loving, and hating money.

Gresham & Footenot (1989). The Money Attitude Scale. Advances in marketing.

Hanley & Wihelm (1992). Money Beliefs and Behaviour Scale. JEP.


Measures of Money Attitudes-4

Haraoka (1990). Money & value orientation, PJSSP.

Lim & Teo (1997). Sex, money and financial hardship, JEP

Luna-Arocas, Quintanilla, & Diaz (1995). EAD-6, IAREP.

Luna-Arocas (1998). Dinero, Trabajo y Consumo. PROMOLIBRO

Lynn (1991). The secret of the miracle economy.


Measures of Money Attitudes-5

McClure (1984). Money attitudes and overall pathology, PAQJHB.

Mitchell & Mickel (1999). The meaning of money: Money Importance Scale, AMR.

Opsahl & Dunnette (1966). The role of financial compensation in industrial motivation, PB


Measures of Money Attitudes-6

Quintanilla (1997). Psicologia Economica. McGraw Hill.

Richins & Rudmin (1994). Materialism, JEP.

Rubenstein (1981). Money & self-esteem, relationships, secrecy, envy, satisfaction, PT.

Tang (1992). The Money Ethic Scale, JOB.

Tang (1995, PAID; 1999, PPM; in press, PR; Tang et al., 2002), 5 Versions


Measures of Money Attitudes-7

Thierry (2000). The meaning of pay, in Erez & Thierry (Eds.) Work motivation.

Wernimont & Fitzpatrick (1972). The meaning of money, JAP.

Yamauchi & Templer (1982). Money attitude scale, JPA.

Zelizer (1989). The social meaning of money: Special monies, AJS.

Zuckerman (1983). Sensation seeking.

Mitchell & Mickel (1999)

The well-developed measures are those that have been developed more carefully and used more systematically. There are three of these:

(1) the money ethics scale (Tang, 1992, 1993, 1995),

(2) the money belief and behavior scale (Furnham, 1984; Furnham, Kirkcaldy, & Lynn, 1994), and

(3) the money importance scale (Mitchell, Dakin, Mickel, & Gray, 1998) (AMR: 571).


Why Do We Study Money Attitude?

The Importance of Money (Mitchell & Mickel, 1999)

The Meaning of Money (Individual Difference)

Money а Materialism

Other Attitudes—Pay Satisfaction

Pay Dissatisfaction has numerous undesirable consequences (Heneman & Judge, 2000)

Commitment, Turnover, Counter-Productive Behavior, and Unethical Behavior (Cohen-Charash & Spector, 2001; Hom & Griffeth, 1995; Tang, Kim, & Tang, 2000)


The Money Ethic Scale

Has been used in many samples, in many countries, and in many languages (published articles): Chinese, English, French, Italian, Spanish, Russian, etc.

Research Question:

Does money (income) have a direct and/or indirect impact on unethical behavior?

Does money attitude (the love of money, the MES) have a direct and/or indirect impact on unethical behavior?

MES in This Study

58 items, EFA—US Sample, 14 factors,

Select 4 factors (17 items), EFA, CFA—Whole Sample, 12 Countries

The Love of Money

  1. Motivator
  2. Success
  3. Important
  4. Rich


No other incentive or motivational technique comes even close to money (Locke, Feren, McCaleb, Shaw, & Danny, 1980: 381).

Money is a motivator (Gupta & Shaw, 1998; Lawler, 1981).

Ex. I am motivated to work hard for money. Money is a motivator.


In America, money is how we keep score (Rubenstein, 1981).

Some people are obsessed with “money as a sign of success” (Furnham & Argyle, 1998: 148)

Ex. Money represents my achievement. Money is a symbol of my success.


The one consistent thread in this body of work is “the emphasis on its importance” (Mitchell & Mickel, 1999: 569)

Ex. Money is important. Money is an important factor in the lives of all of us.


Would you like to be Rich or Poor?

Most people: Rich

Being Rich will make you feel Good, Happy, Powerful, Beautiful, Healthy, etc.

Many CEOs are tested G-r-e-e-d positive (Crystal, 1990, Fortune).

Ex. Having a lot of money (being rich) is good. I want to be rich.

Other Variables:

Pay Satisfaction:

18-Item Pay Satisfaction Questionnaire:

Pay Level



Pay Administration

Heneman & Schwab (1985)


Organizational Commitment:

15-Item Organizational Commitment Questionnaire.

Two Indicators:

Commitment, Not to Leave (- items)

Mowday, Steers, and Porter (1979)


In This Study:

Is “money” the root of all evil?

Is “the love of money” the root of all evil? (Bible: Tim, 6:10)


Cross-Cultural Study:

Australia, Austria, Belgium, Brazil, Bulgaria, Canada, Chile, China, Congo (Zaire), Cuba, Czechoslovakia, Egypt, France, Germany, Hong Kong, Hungary, India, Italy, Macau, Macedonia, Malaysia, Malta, Mexico, Nigeria, Oman, Panama, Peru, Philippines, Poland, Portugal, Puerto Rico, Romania, Russia, Saudi Arabia, Singapore, Slovenia, South Africa, South Korea, Spain, Taiwan, Thailand, Turkey, Ukraine, the UK, the USA, and Venezuela.

Need your help to expand this project

Income а Money Ethic

Inverted U: + , 0, --

Unsatisfied needs are important, satisfied needs are not (Alderfer, 1971; Maslow, 1970)

Financial Hardship а Obsessed with Money (Dittmar, Tang, & Tillery, 2001; Lim & Teo, 1997; Lynn, 1991; Tang et al., 2001) (+ path)

Higher Incomes а Lower Marginal Utility of Money (Brandstatter & Brandstatter, 1996) (-- path — отрицательный путь)

Fairly Paid Income а MES: Non-significant (Tang, Luna-Arocas et al, 2001)

Compare Income with GDP per Capita (Bill Gates: 52.8B)

Among nations: As nations get richer, increases in wealth are associated with diminishing increases in well-being (Ahuvia & Friedman, 1998; Schyns, 1998)

Objective Wealth vs. Subjective Appraisals (Ahuvia & Friedman, 1998)


Objective Money (Income)

Within nations: Increased income is associated with well-being for the poor; once the poverty threshold is crossed, increased income matters little for happiness (Czikszentmihali, 1999; Diener, 2000; Myers 2000; Oishi, Diener, Lucas, & Such, 1999; Oropesa, 1995, Richins & Rudmin, 1994; Schyns, 2000; Tatzel, 2002)

Subjective Money (Compare)

Subjective well-being increases as income increases from below average to above average within one’s home community (Hagerty, 2000)

East Asia

The major global market for luxury goods (Wong & Ahuvia, 1998)


Possessions as a measure of Success (Webster & Batty, 1997; Wong & Ahuvia, 1998).

Hong Kong

Cash Mentality (Chiu, Luk, & Tang, 2001)

The Most Popular Car in Hong Kong…Public Visibility — Face

MES а Pay Satisfaction

Equity Theory (Adams, 1965)

Discrepancy Model (Lawler, 1971)

Expectation vs. Reality

“The Love of Money” as the Frame of Reference, i.e., expectation, standards.

High MES а High Pay Dissatisfaction

Pay Satisfaction а Commitment

Job Satisfaction а Commitment (Williams & Hazer, 1986, SEM)

There is reciprocal and synchronous causality between commitment and satisfaction, with satisfaction influencing commitment more than vice versa (Home & Griffeth, 1995: 98).

Perceived unfair procedural and distributive justice а negative attitudes toward the organization (e.g., lower trust and commitment) (Cohen-Charash & Spector, 2001: 288)

Commitment а Unethical Behavior

From a procedural justice perspective, perceived injustice will lead to negative perceptions of the organization and, hence to counterproductive behaviors that will hurt the organization (Cohen-Charash & Spector, 2001: 287).

Business Ethics

Taxonomy and Concepts (Forsyth, 1980; Michalos, 1995)

Culture (Hofstede, 2001; Trompenaars, 1994)

Social Institutions (Parsons, 1990)

Personal Values (England, 1975)

Cross-cultural (Wines & Napier, 1992)

Ethical Culture а Commitment

Top-level Manager can reduce unethical behavior (Finn, Chonko, & Hunt, 1988)

Attraction-Selection-Attrition (Chatman, 1989; Douglas & Schwartz, 1999; Ponemon & Glazer, 1990; Tang & Frost, 1999)

Differences in ethical culture across firms and across offices within the same firm (Jeffrey & Weatherholt, 1996)

Ethical Culture а Ethical Behavior (Hunt & Vitell, 1986; Trevino, 1986) “Directly”

Ethical Culture а Individual Values (i.e., idealism) а Ethical Judgments (Douglas, Davison, & Schwartz, 2001) “Indirectly”

Ethical Culture а Commitment а Unethical Behavior Indirectly

Sex а MES

Men prefer equity, women prefer equality (Tang, 1996; Tang, Furnham, & Davis, 2000)

Men consider money more important than women (Lawler, 1971)

Women are more subjectively satisfied with their pay than men, the contented female worker (Crosby, 1982; Major & Konar, 1984; Sauser & York, 1978; Smith, Kendall, & Hulin, 1969)

Job Changes а Unethical Behavior

Reason for Voluntary Turnover: higher wages/career opportunities (Campion, 1991)

Leavers have lower pay satisfaction and receive 20% pay increase on their new jobs.

The number of job changes is a predictor of management professors’ pay (Gomez-Mejia & Balkin, 1992) Self-Interest vs. Organization



211 Full-Time White-Collar HK Employees

HK is a part of China.

HK: 7.1 million people, 400 sq. miles

Small than LA, CA (3.5 million people)

Hong Kong

Rich people live in Luxury apartments/houses

Others: High-rise Apt. Buildings cement forest

Property (flat) size 1,440 sq. ft.

HK 3,491/sq ft. (US$ 452/sq ft) in 1995

The cost of an average Apt: US$ 560,160

China’s window to the world

In 1995, 58.2% of the PRC’s foreign investment came from HK

80% of HK manufacturers have set up production facilities in the PRC

In 2000, PRC has absorbed 188,214 direct investment projects from HK

US$ 317 billion

Cash Mentality (Chiu, Luk, & Tang, 2001)

Life achievement is measured by the size of their pay check (Chiu & Kosinski, 1995)

Additional Data

HK: income = $47,502,

*GDP per Capita = $25,100,

*ratio = 1.89

*CPI 2001 (1) Rank = 16, (2) Score = 7.6

CPI for HK: Rank = 14, Score = 7.9

Low Corruption > 9; High Corruption < 5

Data Analysis

Convert income to Z Income

Perform CFA for all measures

Test the SEM Model for HK


Main Results

The Money Ethic is directly related to Unethical Behavior, whereas Income is not.

The “Love of Money” is the root of all Evil.

Money is not the root of all evil.

Income reduces “the love of money”.

HK: income = $47,502,

*GDP per Capita = $25,100,

*ratio = 1.89

“The love of money” leads to high Pay Dissatisfaction.

Pay dissatisfaction leads to low organizational commitment.

Sex (male) is related to the love of money.


Ethical Issues

Commitment has no impact on unethical behavior.

Ethical culture has no impact on commitment.

Mr. Anthony Leung, a former top executive of an American bank in HK, made about HK 20 million dollars a year.

He now makes just over HK 2 million dollars as the Financial Secretary of the Hong Kong Special Administration Region Government.

Anthony Leung

The Importance of money depends on only how much one has to spend, not how much one can make (May 1, 2001, South China Morning Post).

Rich People: Make a lot of money, spend a little

Unethical Behavior

Average Income: US$ 47,509

SD of Income: US$ 45,159, a very large variability in this sample

Low-income HK employees: improve standard of living, admire others who have wealth (a large house), cover expenses

Ethical Culture

Hong Kong was returned back to China in July 1997.

The culture of corruption from China may have invaded Hong Kong.

The Rule of Man >> The Rule of Law

Guanxi (Dunfee & Warren, 2001; Steidlmeier, 1999)

Corruption Report in HK

The number of cases has been on the rise

1992: 2186

1994: 3312

1996: 3086

1998: 3555

2000: 4390

China: GDP per Capita = US$3,600

CPI Rank = 57; Score = 3.5 < 5

HK/PRC GDP Ratio: $25,100/$3,600 = 6.97

The number of cases has been on the rise

1992: 2186

1994: 3312

1996: 3086

1998: 3555

2000: 4390

China: GDP per Capita = US$3,600

CPI Rank = 57; Score = 3.5 < 5

HK/PRC GDP Ratio: $25,100/$3,600 = 6.97



Employee theft is a $200 million-dollar a year problem in the US

Some managers condone theft by looking the other way

Treat that as “an invisible wage structure” to compensate for their lower than average wages

Financial loss is attributed to

Employee Theft--38.4%


Administrative Error –19.4%

Vender Theft—6.4%

Average Loss

Shoplifting—$142.49 per incident

Employee Theft–$737.31

Armed Robbery–$2,410

Culture of corruption а Business failures

Discourage and Prevent


The love of money is the root of evil. (Tim, 6:10)

Additional Thoughts

It is easier for a camel to go through the eye of a needle, than for a rich man to enter into the kingdom of God.

Judas, who betrayed Jesus for a sum of money, was the treasurer of the disciples. John, 12: 6; 13: 29

For when he dieth he shall carry nothing away: his glory shall not descent after him. Psa, 49: 17

Beloved, follow not that which is evil, but that which is good. He that doeth good is of God: but he that doeth evil hath not seen God. John, 11


Professional Wrestlers as Ushers: Increased Collection Plate Donations by 72%


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