A Comparative Analysis of the Job Satisfaction of Industrial Managers and Certified Public Accountants*

This study is designed to extend and eniarge upon previous empiricai studies concerned with the perceived job satisfaction of manageriai personnei. it focuses upon comparing the perceived need satisfactions of managers in iarge industriai organizations and Certified Pubiic Accountants empioyed by iarge CPA firms. JOHN M. IVANCEVICH University of Kentucky and ROBERT H. STRAWSER Pennsylvanio State University In recent years there has been an increased effort among behavioral scientists and practitioners to unravel some of the mysteries of eliciting appropriate behavior from managerial personnel. If the executives who make policy level decisions and the individuals themselves knew more about the psychological aspects of managerial jobs and how these requirements affect job satisfaction, then recruitment, promotion, training, and other personnel errors might be significantly reduced. It has been proposed by Triandis,i and Porter and Lawler,^ among others, that the perception by managers of certain psychological relationships between their personal needs and their jobs is a major determinant in the attainment of organizational goais. The relationships between job satisfaction and such organizational phenomena as the subject's level in the management hierarchy, the sub*The authors would like to thank Lyman Porter for his cooperation in providing statistical data so that comparisons could be made in this study. ^H. C. Triandis, "Categories of Thought of Managers, Clerks and Workers About Jobs and People In Industry," Journal of Applied Psychology, XXXVII (Dec, 1953), 338344 and H. C. Triandis, "Differential Perception of Certain Jobs and Peopie by Managers, Clerks, and Workers in industry," Journal of Applied Psychology, XLIll (June, 1959) 221225. 'Lyman W. Porter and Edward E. Lawler, III, "What Job Attitudes Tell About Motivation," Harvard Business Review, XLVI (Jan.-Feb., 1968), 118-126. 193

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ject's working in a line or staff capacity, and the size of the organization in which the subjects are employed have been extensively examined. These studies deal specifically with the need satisfactions of executives working in the same or simiiar industries. Considering the increased interest in managerial motivation, it is surprising that only a few comparative studies using managers from different industrial categories (i.e., banking, transportation, steel, education) have been performed.^ The present study is designed to extend and enlarge upon previous research studies concerned with the perceived job satisfactions of managerial personnel. It focuses upon comparing the perceived need satisfactions of industrial managers in large firms and Certified Pubiic Accountants in large firms. While a complete review of the relevant research literature is beyond the scope of this paper, it is readily apparent that there is a lack of such comparative data. The need satisfaction data collected from managers from different industries wouid seem to be valuable information for executives in each of the industries studied, for the student Interested in learning about the psychological aspects of work in a particular industry, and for the researcher attempting to improve upon existing managerial motivation theories.
RELEVANT THEORY AND RESEARCH

Researchers dealing with the complexities involved in studying managerial motivation have had to face the problem of how to name and classify the motives and needs of subjects. One of the most popular theoretical frameworks employed for grouping motives and needs is the need hierarchy model of Maslcw.^ It is his contention that human needs arrange themselves in a hierarchy of prepotency. Five sets of needsphysiological, safety, social, esteem, and self-actualizationare included in Maslow's model of human motivation. Maslcw proposes that the human being continually seeks to satisfactorily gratify some need or needs in the prepotency hierarchy.^ As a need category is sufficiently fulfilled, it loses all or some of its motivating power. That is, if the physioiogical need category is perceived as being adequately gratified, company programs designed to further enhance need fulfillment and improve jcb performance will not be significantly worth'There are many comparative studies of organizations offered in the literature. There are none, however, that deai with the need satisfaction concept appiied across different industries. For an excellent review and presentation of a framework for conducting comparative analysis see Charles Perrow, "A Framework For the Comparative Analysis of Organizations," American Socioiogicai Review, XXXil (April, 1967), 194-208. *A. H. Maslow, "A Theory of Human Motivation," Psychoiogicai Review, L (1943), 370-396; and A. H. Maslow, Motivation and Personaiity (New York: Harper and Row, 1954). Maslow did not beiieve that the five needs were reiated to one another in an allor-none reiationship. Rather, he contended that more peopie exhibit decreasing percentages of satisfaction as an upper level need replaces a lower need in predominance.

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while." Thus, Maslow implies that anyone attempting to create a work environment that wiil optimally motivate employees should be cognizant of the fact that human action and reaction are primarily directed toward the satisfaction of unfiiled needs. The need prepotency model was the basis fcr Porter's extensive research on how managers perceive the psychological characteristics of their job.'' In one study of first-level supervisors and middle managers, he found that job level appeared to influence the extent to which the five need categories are gratified.* The middle level managers reported significantly more need satisfaction in the security, esteem, and autonomy categories than did the first-level supervisors. He enlarged this set of findings by conducting a study on a group of industrial managers working at three managerial levelstop, middle, and lower." Again he found that top level managers (presidents and vice-presidents) perceived more need satisfaction in various need categories than did those at lower levels. The top level managers perceived more need satisfaction in the autonomy and self-actualization categories; lower-level managers reported more satisfaction in the security and social needs; the middle managers arranged themselves between the two other groups of managers. Porter also studied the effect of size of organization on managerial need satisfactions.^" He believed that many previous researchers had implied that managers in smaller organizations display higher morale and greater job satisfaction. A sample of 1,916 managers was studied in order to reach conclusions concerning the satisfaction variable as related to size of the employing firm. He found that perceived need satisfaction increased from higher to lower levels of management within each of his size classificationslarge (5,000 or more employees), medium (500-4,999 employees), and small (less than 500 employees). It was also found that at lower levels of management (i.e., first-level supervisors), the respondents from smaller companies reported more need fulfillment. However, at the

"For an excellent review article on manageriai motivation see L. L. Cummings and A. M. ElSalmi, "Empiricai Research on The Bases and Correlates of Manageriai Motivation " Psychological Bulletin, LXX (August, 1968), 127-144. 'Porter estabiished his own need hierarchy which consists of security, sociai, esteem, autonomy, and self-actuaiization need categories. Note that he eliminated the physiological need and added the autonomy category. He beiieved that the physioiogicai need was so satisfied for managerial personnel that questions concerning it wouid appear irrelevant and unnecessary to the respondent. *L. W. Porter, "A Study of Perceived Need Satisfactions In Bottom and Middie Management Jobs," Journal of Applied Psychology, XLV (Feb., 1961), 1-10. L. W. Porter, "Job Attitudes in Management: Perceived Deficiencies In Need Fulfiilment As A Function of Job Level," Journal of Applied Psychoiogy, XLVI (Dec, 1962), 375-384. " L . W. Porter, "Job Attitudes In Management: Perceived Importance of Needs As A Function of Size of Company," Journai of Applied Psychoiogy, XLVII (Dec, 1963), 386397.

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upper levels (i.e., vice-presidents), the managers in the larger organizations reported more satisfaction than their small company counterparts. Porter's approach to the study of the perceived need satisfacticns of managers has been adopted by other researchers. Paine, Carroll, and Leete" studied need satisfaction among managers in one government agency and compared them with private industry managers at the same hierarchical level. The data for the private industry managers were taken from a study conducted by Porter.^^ it was discovered that government managers were less satisfied across all need categories than private industry managers. A number of factors, however, minimize the importance of these comparative findings. First, at the time the study was conducted insecure conditions prevailed in the government agency and these may have affected the respondents' perceived need satisfactions. Second, variability information for the private industry managers was not available and it was not possible to test for statistically significant differences between the groups studied. Edel employed the Porter approach to measure the need satisfactions of first-line and middle level government managers.^^ He found that firstline government managers perceived more need deficiencies than middle level respondents. The highest deficiencies for both levels of management were reported in the autonomy and self-actualization categories. The research evidence discussed points to three tentative conclusions." First, the needs which are least satisfied in the various industrial and government manager studies are the autonomy and self-actualization. Second, the degree of perceived need satisfaction generally improves as the sample studied is at a higher managerial level in the hierarchy." Top level executives are relatively more satisfied in all need categories than lower level executives. Third, there are virtually no research studies that specifically compare the perceived need satisfactions of managers at the same managerial level in the hierarchy but in different industries.
" F . T. Paine, S. J. Carroii, and Burt A. Leete, "Need Satisfactions of Manageriai Personnei in A Government Agency," Journal of Appiied Psychoiogy, L (Feb., 1966), 247249. ""Job Attitudes in i\^anagement: Perceived Deficiencies in Need Fuifiiiment As A Function of Job Levei." '^Eugene C. Edei, "A Study In Manageriai Motivation," Personnel Administration, XXiX (Nov.-Dec, 1966), 31-38. "For further research data see L. W. Porter, "Job Attitudes In Management: Perceived Deficiencies of Need Fuifiiiment As A Function of Line Versus Staff Type of Job," Journai of Appiied Psychology, XLVil (June, 1963), 267-275; L. W. Porter and M. Henry, "Job Attitudes in Management: Perceptions of The importance of Certain Personaiity Traits As A Function of Job Levei," Journal of Applied Psychoiogy, XLViii (Jan., 1964), 31-36; M. Haire, E. Ghiseiii, and L. W. Porter, Manageriai Thinking: An internationai Study (New Yori<: John Wiley & Sons, 1966); and L. W. Porter and E. E. Lawier, Managerial Attitudes and Performance (Homewood, Iii.: Richard D. Irwin, 1968). "For a study that deais with the interaction effects among severai organizationai variabies upon perceived need satisfactions, see A. M. EiSalmi and L. L. Cummings, "Manager's Perceptions of Needs and Need Satisfaction As A Function of interactions Among Organizationai Variabies," Personnel Psychology, XXi (Winter, 1968), 465-477.

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METHOD The data for the Certified Public Accountants were obtained by means of the Porter need satisfaction questionnaire. The modified version of the questionnaire contained 12 items which are based upon the Maslow theory of motivation. The accountant group was provided with the following instructions: On the following pages will be listed several characteristics connected with your accounting job. For each of the characteristics you are asked to give two ratings on a 7-point scaie: a. How much of the characteristic is there now connected with your accounting position? b. How much of the characteristic do you think should be connected with your accounting position?
Scoring Responses

The amount of perceived need deficiency on each of the 12 need items is calculated by subtracting the rating for part a of an item from part b of an item. For example, suppose a respondent completed the security need question as follows: The feeling of security in my present position a. How much is there now? (min.) 1 2 3 4 5 6 7 (max.) b. How much should there be? 1 2 3 4 5 6 7 This respondent circied "2" in answer to part a and "6" in answer to part b; his need deficiency score would be "4". The assumption is made that the larger the difference, when part a is subtracted from b, the larger the degree of dissatisfaction or the smaller the degree of satisfaction.^* Individuai scores are averaged so that comparisons of the two groups on each need item could be made.
Procedure and Sample

The Porter need satisfaction questionnaire was distributed to 200 randomiy selected Certified Public Accountants working for the largest accounting firms in the United States (e.g.. Price Waterhouse, Ernst and Ernst, Arthur Andersen, etc.). In randomly choosing the accountants from the Directory of American Certified Pubiic Accountants," 100 top management level accountants (e.g.. Partners and Principals) and 100 middle management level accountants (e.g.. Managers and Supervisors) were included in the sample utilized. Replies were received from 48 top level and 60 middle level accountants. In order to compare some characteristics of accountants responding to the questionnaire to those of nonrespondents, demographic items obscoring system was devised by Porter and utiiized in ail studies reported in the iiterature which employ his need satisfaction questionnaire. "American Institute of Certified Pubiic Accountants, Alphabetical List of Members (New York: American institute of Certified Pubiic Accountants, 1968).

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tained from identifiable respondents (i.e., those who repiied to the questionnaire and identified themselves in order to request a summary of the resuits of the study) were compared to a 20 per cent random sample of those who were sent a questionnaire and either (a) did not reply or (b) did reply, but did not identify themselves in order to request a summary of the resuits. it was necessary to contact ali those who did not identify themseives on the questionnaire (groups a and b above) as the questionnaire was anonymous. The demographic factors used in the comparison were (1) age; (2) education; (3) iength of time with present employer; and (4) length of time in present position. No significant differences were noted between respondents and nonrespondents, nor were any significant differences noted among respondents who requested a copy of the resuits, respondents who did not request a copy of the results, and nonrespondents.^* The need satisfaction data for the industriai manager group were obtained from a study previousiy reported by Porter. He administered his satisfaction questionnaire to severai thousand individuais in management positions in industriai firms located throughout the United States. These individuais represented a random 10 per cent sample of the American IVianagement Association and a random sampling of a nonmember iist of the Association. The questionnaires were mailed to top, middie, and iower level managers in companies with 5,000 or more employees. Only the top managers (i.e., chairmen of boards, presidents, and vice-presidents) and middle managers (i.e., division, plant, and departmental) in these large organizations are used to make comparisons with the accountant executives. The nonrespondents in the Porter study were not examined, and this oversight could lead to a reduction in the validity of the present study's findings. The demographic data presented by Porte^^" however, indicate that the respondents correspond to large national samples of managers on such variabies as age and college education. If replication of the present study is performed, however, it is suggested that the researcher con"For the respondents In the study the median age of middie level accountants was 33.4; for top level accountants the median age was 44.1. The nonrespondent median ages were 34.1 for middle level accountants and 43.8 for top level accountants. Educational training for the two classifications, respondents and nonrespondents, was approximately the same. The middle and top level accountant respondents indicated that 94 per cent of them had at least a baccalaureate degree. The nonrespondents reported that 95 per cent of them had at least an undergraduate degree. Middle level accountant respondents indicated they had worked with their present employer for 6.2 years (median) and had been in their present positions 3.4 years (median). The nonrespondents reported that they were employed by their present firm for 6.6 years and in their present position for 3.4 years. Top level respondents had been in their present firm for 16.7 years and had spent 8.8 years in their present position. Tiie nonrespondent top Ievei accountants stated that they were employed by their present firm for 17.1 years and were in their present position for 8.6 years. ""Job Attitudes In Management: Perceived Deficiencies In Need Fulfillment As A Function of Job Levei," p. 377,

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tact nonrespondent industrial managers so that nonresponse bias is identified if it exists. FINDINGS Table 1 presents data comparing the average need satisfaction scores of the top level industrial managers and accountants. The item scores indicate that the largest need deficiencies (i.e., highest mean value) for both groups of respondents occur in the self-actualization need category. The scores also indicate that for six need items the accountants perceive more deficiency and for the other six items the industrial managers report higher deficiency. Statistically significant differences were found in analyzing six of the twelve need items. TABLE 1
Average Need Satisfaction Scores of Top Level Managers: Industrial vs. Accounting Need Categories and Items I. Porter Findings Accountants N=136 N = 48 36 21

Security Need a. (security in job) II. Social Needs a. (opportunity to help people) b. (opportunity for friendships) III. Esteem Needs a. (feeling of self-esteem) b. (prestige inside company) c. (prestige outside company) IV. Autonomy Needs a. (opportunity for independent thought and action) b. (authority in position) c. (opportunity to participate in goal setting) V. Self-Actualization Needs a. (opportunity for grovirth and development) b. (feeling of self-fulfillment) c. (feeling of accompiishment)

.47 .26 .63 .39 .23 .49 .56 .69 .80 .83 .85

.73* .39*

.60 .77* .63* .64 .44 .40*

1.03 .62* .80

Note: The larger the average mean values, the less the perceived need satisfaction. *Designates significant difference at .05 ievel of confidence as determined by two-tailed t-test.

The item scores for each of the five need categories were combined (e.g., the three autonomy item scores were added together) to derive what is referred to as cluster scores. These scores are presented in rank order format in Table 2. A review of Table 2 shows that the industrial manager rani< order is similar to the need hierarchy model. The esteem, autonomy, and self-actualization needs are ranked exactly as postulated by Porter. The accountant rank orders deviate from the theoretical model. For example, the autonomy need is the second most satisfied category and the esteem need the fourth most satisfied. It is Porter's contention that the rank order of need satisfaction from most to least would normally be security, social, esteem, autonomy, and self-actualization.

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TABLE 2
Average Need Satisfaction Ciuster Scores in Rank Order by Category for Top Level Managers: Industriai vs. Accountant Industriai: Rank N=136 duster' Score Accountant: N=48 Need Category Cluster Score

Need Category

.21 Security .27 1 Social .49 Autonomy .36 2 Security .51 Sociai .42 Esteem 3 Esteem .67 Autonomy .58 4 Self-Actualization .81 Self-Actualization .83 5 Note: No significant differences at .05 level of confidence were found when using two-taiied t-test. "The cluster scores are the average of the average of the item scores for each need category. That is, add up the individual responses for the two social need item questions and divide with the proper n to secure an average of the average.

The findings reported in Table 3 focus upon the average need satisfaction scores of those respondents classified as middle level. The accountants report more perceived need satisfaction for four of the twelve items, but the differences on the other eight items are extremely small. Only two statistically significant differences are indicated and these are for the self-esteem and goal setting item comparisons. Once again the largest need deficiencies are perceived in the opportunities to fulfill the self-actualization category. TABLE 3
Average Need Satisfaction of Middle Level Managers: Industrial vs. Accounting Need Categories and items Porter Findings Accountants N = 268 N = 60 .28 .39 .25 .71 .56 .34 .62 .92 .97 .88 1.00 1.15 .29 .43 .32 .29* .68 .39 .70 .86 .64* .88 1.01 .89

\. Security Need a. (security in job) ii. Social Needs a. (opportunity to heip people) b. ((opportunity for friendships) lil. Esteem Needs a. (feeiing of self-esteem) b. (prestige inside company) c. (prestige outside company) IV. Autonomy Needs a. (opportunity for independent thought and action) b. (authority in position) c. (opportunity to participate in goai setting) V. Self-Actualization Needs a. (opportunity for growth and development) b. (feeiing of seif-fuifillment) c. (feeling of accompiishment)

Designates significant difference at .05 level of confidence as determined by two-taiied t-test.

Table 4 brings into clear focus the rank orders of the cluster scores for the middle level managers. The five need categories are rank ordered in an identical array for both the industrial managers and the accountants.

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In fact, the absolute values of the five cluster scores for each group are very similar. TABLE 4
Average Need Satisfaction Cluster Scores In Rank Order by Category for Middle Level Managers: Industrial vs. Accountant Industrial: Rank 1 2 3 4 5 N=268 Cluster Score Accountant: Need Category Security Social Esteem Autonomy Self-Actualization N=60 Cluster Score .29 .38 .45 .73 .93

Need Category Security Social Esteem Autonomy Self-Actualization

.28 .32 .54 .84 1.01

Note: No significant differences at .05 level of confidence were found when using two-tailed t-test.

DISCUSSION Previous empirical studies of the effects of position in the managerial hierarchy of respondents on perceived need satisfaction have consistently found that self-actualization needs are the most deficient area of satisfaction. However, these previous research efforts were mostly intraindustry comparisons among managerial personnel and arguments could be advanced for a view that interindustry analysis might produce different results. The findings of the present study show that when managers from diverse industries (i.e., industrial managers in business firms and accountants in CPA firms) at the same managerial level are compared, the largest perceived need deficiencies are found in the self-actualization category. The results of the present study also indicate that the security need category is relatively satisfied for both groups of managers. The expectations of top level and middle level managers in the industrial sample and in the accountant sample are convergent with their perception of reality for the security need. This high degree of satisfaction is hypothesized by Maslow and Porter in their need hierarchy frameworks. It is also supported with results obtained by other researchers who studied intraindustry groups of managers.20 There are two major implications suggested by the results regarding the self-actualization and security need categories: 1. The type of occupation in which a respondent is employed does not have a significant influence on the relative satisfaction of the self-actualization need. This need has been reported to be unsatisfied at the nonmanagerial level. The present findings, however, show that industrial vice-presidents, accounting partners, plant superintendents, and accounting supervisors also perceive difficulty in sufficiently satisfying this need. Should
"This point is supported by the research work of Porter and Edel previously cited.

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the mean differences which are generally greater than .80 scale units be considered cause for concern? This is difficult to answer for the samples of managers used in this study. Examining the findings as a total picture, however, it would seem reasonable to conclude that managers at the upper echelons in the formal organizational hierarchy are not satisfied with their opportunities to derive adequate gratification in the self-actualization need category. Executives in the top policy making positions can improve the perceived need satisfaction of those managers included in this study by correcting the self-actualization deficiency. Motivation programs which are designed to remedy high degrees of deficiency in the self-actualization area are needed. 2. It is hypothesized by Maslow, the originator of the need hierarchy model, that a sufficiently satisfied need is not a positive motivator of behavior. Thus, the relatively high degree of security need satisfaction should indicate that motivation programs could achieve more noticeable results by concentrating more on the other four need areas. Before corrective action programs to enhance managerial motivation are developed and implemented within a firm, it would be desirable to ascertain need deficiencies. A system of monitoring need satisfactions of managerial personnel would enable policy makers to formulate motivation programs which enhance the growth and development of executives without disrupting operations. The results of this study also suggest that some major differences in the perceived need satisfactions of industrial managers and accountants exist. The most distinct differences are found when comparing top level respondents in the social need area. The accountants report significantly more deficiency for the two need item questions. Reviewing Table 2 indicates that the middle level accountants also perceive more need deficiency, although not statistically significant than their industrial counterparts in the social category. Since Certified Public Accountants work with many different clients and with different accountants on team projects, their opportunities to develop close friendships and acquire a feeling of helping others may be limited. A study of a larger group of accountants from large CPA firms is needed to test this premise. If further research studies indicate the accountants as a group within one company and/or within the accounting profession perceive high degrees of social need deficiency, then motivation programs which can rectify this situation should be developed and implemented. CONCLUSION This study is a step in the direction to provide research data so that the perceived need satisfactions of managers in different industries, but at the same organization level, can be compared. The findings suggest that some similarities and some differences in need satisfaction exist for

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the managers included in the two samples. The results concerning selfactualization and security are similar to those found by other researchers. In general the need deficiencies for the industrial managers and accountants are not extremely large. The findings should be treated with caution, particularly with regard to generalizing about opportunities to satisfy the five need categories in ali iarge industriai organizations and in every public accounting firm. The results and the review of relevant research, however, serve to show that information which can be used to correct some of the errors made in selection, training, and development of managers can be obtained through a motivation monitoring system. Systematic comparisons of managers in different industries can improve our understanding of what type of individual would operate most effectively in a particular environment. By examining and enlarging upon previous perceived need satisfaction findings, we have improved our current understanding of managerial motivation on an interindustry basis.

FOR PLACEMENT LISTING PURPOSES PLEASE CONTACT:

Dr. Max S. Wortman, Jr., College of Business Administration, University of Massachusetts, Amherst, Massachusetts. Dr. Wortman is chairman of the Placement Committee. Keep in mind that the next annual meeting of the Academy of Management is to be held August 24 - 27. This Is presumably a permanent change from the traditional Christmas Week meetings. This means that the job-seeking and position-filling process will be advanced by four (4) months.