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The theory of work adjustment (TWA) describes how and explains why workers adjust to their work environments. It depicts adjustment as the interaction of person (P) with environment (E). Interaction refers to P and E acting on as well as reacting to each other. P and E interact because, to begin with, each has requirements that the other can fill, and each has capabilities to fill the other's requirements. So long as each is satisfied with the outcomes, the interaction will be maintained. But when one or both are dissatisfied with the outcomes, adjustment will be attempted. The theory of work adjustment asserts that satisfaction and work adjustment depend not so much on P variables or E variables, but on the particular combination of P and E variables (TWA calls the combination P–E correspondence). Thus, in TWA, work adjustment is described and explained by two psychological propositions: (a) Satisfaction drives behavior, and (b) satisfaction is a function of P–E correspondence. (Here, satisfaction extends to dissatisfaction and correspondence to discorrespondence.)

In TWA, P and E are described in parallel and complementary terms. P requirements are called needs, and E requirements are called tasks. Needs are requirements for specific reinforcers, such as compensation and opportunity to achieve. Tasks are response requirements to produce a product or perform an action. Needs differ in degree of importance, whereas tasks differ in degree of difficulty. P has response capabilities, called skills, to meet E tasks, and E has reinforcement capabilities, reinforcers, to meet P needs. Furthermore, TWA posits latent dimensions as underlying needs, called values, and latent dimensions as underlying skills, called abilities. To summarize, in TWA, P is described as having needs and skills, or values and abilities, whereas E is described as having reinforcers and tasks (but see the next paragraph).

To measure P–E correspondence requires that both P and E be described in the same terms. P needs are defined as reinforcer requirements, which allows them to be compared with E reinforcers. E tasks can be redefined in terms of their skill requirements, which can then be compared with P skills. Thus, two P–E correspondences can be calculated: E reinforcer to P need (reinforcer requirement) correspondence, and P skill to E skill requirement correspondence. Two other P–E correspondence measures can be calculated by using P values and P abilities. This would require that latent dimensions be determined for E reinforcers and E skill requirements, which dimensions can be called reinforcer factors and ability requirements, respectively. These two P–E correspondences will therefore be E reinforcer factor to P value correspondence and P ability to E ability requirement correspondence.

Satisfaction is the affective evaluation of a situation. In TWA, P is satisfied when P needs are reinforced by E, and E is satisfied when E tasks are accomplished by P. To avoid confusion and to keep the focus on P, TWA calls E satisfaction P satisfactoriness. (P satisfaction extends to P dissatisfaction, and P satisfactoriness extends to P unsatisfactoriness.) P satisfaction and P satisfactoriness lead to tenure (length of stay on the job). For TWA, satisfaction, satisfactoriness, and tenure are the indicators of work adjustment in P.

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