It was hypothesized that one possible explanation of moderator effects is that they are due to different degrees of homogeneity with respect to a causal variable among different subgroups. This hypothesis was tested in a laboratory experiment in which performance was predicted from ability using motivation as the moderator. Ability was measured with a work sample and motivation was varied by assigning goals with different degrees of difficulty and specificity. It was found that ability predicted performance better in groups which were homogeneous with respect to motivation that in those which were motivationally heterogeneous. A moderated regression analysis showed that most of the differential validity was reducible to main effects, but significant interaction effects were found. One of them was caused by the fact that in one low motivation condition the variance in performance was reduced, thus decreasing the slope of the regression line.THERE has been persistent controversy over the issue of whether motivation and ability interact to produce performance ( P ) . If ability ( A ) is defined as the capacity to perform (i.e., knowledge and skill), and motivation ( M ) is defined as the desire to perform (i.e., effort), then the interaction hypothesis is that P = A X M. A second hypothesis, except for cases where A or M equal 0, is that A and M combine additively, thus P = A + M . A third alternative is to combine the first two, so that P = A + M + ( A X M ) .Since numerous studies have shown evidence for the main effects of both A and M, the real controversy is over the existence of the interaction term in the additive model.

Emphasizes that, when conducted properly, customer satisfaction surveys can provide a wealth of information, with direct relevance to an organization’s strategic plan, but when done improperly such surveys provide interesting but on the whole not very useful information. Sums up that when a customer satisfaction survey programme is conducted properly it can be an extremely valuable tool for assessing the effectiveness of strategic plans.

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