CHAPTER 2: REVIEW OF THE LITERATURE
2.4 Theoretical framework of the study
This section will elaborate on a number of theories that are mainly utilised in the current research, namely managerial tools and theories for human value theory (Schwartz, 1999); expectancy theory (Vroom, 1964) and social exchange theory for human values (Blau, 1986). These theories will be used to ground the findings upon and develop a theoretical framework for this study.
2.4.1 Schwartz value theory
Schwartz (1992) assumed that common human values refer to intellectual symbols of social interface wants, biological desires and group of well-being want by focusing on the motivational purpose. Schwartz classified 10 types of human values such as: power,
Culture
Individual personality Pressure from peers Self-efficacy Trust
Environmental stimuli
81 hedonism, achievement, stimulation, universalism, self-direction, tradition, benevolence, security and conformity. These are the subdomain of two higher dimensional structure of values, which was comprised of four higher order aspects in opponent to each other within the motivational construct.
First dimension, named openness to change conservation, tells about the conflict between being motivated "to follow their own intellectual and emotional interests in unpredictable and uncertain directions" and "to reserve the situation quo and the certainty it offers in relationships with close others, institutions, and traditions" (Schwartz, 1992, p. 43). The second aspect, named self-enhancement-self-transcendence, discusses the conflict between concern for the consequences of own and others' actions for the self and concern for the imports of own and others' movements in the social setting. All aforementioned basic human values are actually guides for the evaluation of employee’s behaviour outcomes.
This research uses Schwartz value theory to provide a rich assessment about employee's values system. As Schwartz value theory describes the impotency level of employee's values which guide their behaviour in the workplace, it was used to understand the effect of employee's values on their behaviour and accordingly service quality of banks.
2.4.2 Expectancy theory
The expectancy theory will be used as a basis to link human values, employees’ motivation, employees’ abilities, and service quality. The theory was first proposed by Vroom (1964). It is based on the meaning of motivation, also analyses motivation via perspectives to the fact that why individuals select an action or carry out a behaviour (Lee, 2007). Elements of this theory include expectancy, valence, plus instrumentality. While Valence is well-defined as an “impressing orientations to a specific outcome’’ as well as ‘‘a result is positive valence if the individual prefers achieving it not achieving it” and
82 “if outcome show a zero valence the individual is insensible to reaching or not reaching it, and it is negative valence if an individual prefers not getting it to getting it” (Vroom, 1964, p. 15). Furthermore, expectancy may be explained as “an individual’s assessment probability that is effort will head to effective performance and improve service quality. This approximation is equally rely on the confidence an individual has in their own abilities and values priorities to accept and impact on outcome.” (Lee, 2007, p. 790). Finally, instrumentality can be define as “the individual’s perception of the possibility that his/her performance will head to a particular outcome”.
This study uses the Expectancy Theory to understand how individuals make decisions pertaining to multiple behavioural alternatives, such as values, needs, and goals. The Expectancy Theory can be considered in the relationship between service quality, employee's behaviour outcome and employee's human values drawn from the study.
2.4.3 Social exchange theory
The theory still is one of the key theories in social psychology from the time of Homans (1958), Blau (1964) and March and Simon (1958) currently, scholars utilise Social Exchange Theory in order “to investigate the employment relationship as demonstrated by study on psychological bonds and perceived organisational backing and its outcomes on employees’ behaviours and attitudes” (Coyle-Shapiro et al., 2005, p. 5). There are quite a few researchers on organisational citizenship behaviour that assumes a social- exchange-based vision of citizenship working performance (Zellars et al., 2003).
Though, this theory is focused the motivational features of employee-organisation connections, which provides an insight into indications of the right between the anticipated inducements and assistance delivered in an “employee-employer exchange” (Takeuchi, 2003). The Social exchange theorists such as Gouldner (1960) assess for any connections between employers and employees as per observations of reciprocity at
83 individual's level of analysis. This theory by Blau (1986) outline the motivation at the back of behaviours and attitudes that are exchanged or replaced between employees.
Thus, individual regard their relationship with their managers in a manner similar to how they view their relationship with other employees (Whitener, 2001). “Social exchange refers to volunteer actions of persons who are motivated by means of the returns they expected to get usually from others” (Blau, 1986, p. 91). The Blau showed two basic types of exchanged relations (social and economic exchange) between people or social ethics in his quest of refining the theory. The link between a form and employees can rely on “social and economic exchange”, on “social exchange”, or any mixture thereof. For instance, Organ and Konovsky (1989) showed that the social exchange relation is a precondition for organisational behaviour citizenships, and this link will result in increased OCBs. Human values are expected to create “social exchange relations” through workers, and these individuals will be more than to be expected to demonstrate OCBs (Sun et al., 2007).
The social exchange theory was used in the study to provide a view on the relationship between employee's behaviour and service quality which is evaluated by bank customers.