Valence of Rewards

Valence is a subjective value attached to an incentive of reward. People attach a valence to an incentive because they believe it satisfies some of their needs. Since it is subjective, people differ in the value they attach to a given incentive. For example, one person may attach a high value to a promotion, while another person can avoid it. The former may like it because it brings money and power, while the latter dislikes it because it means more responsibility or the headaches of dealing with other people's problems. Also since it is subjective, managers have little control over the valences their employees attach to organizational incentives. However, managers can influence the valence if incentives by matching rewards to employee needs. Valence usually increases when (1) an employee has strong needs, (2) the incentive matches one or more needs, and (3) the size of the incentive is large enough to satisfy the aroused needs. For example, an employee will probably attach a high valence to money if (1) he or she has a strong economic need, (2) money used as an incentive, and (3) the size of the monetary incentive is sufficiently attractive.