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A CONCEPTUAL MODEL EXPLAINING THE EMPLOYMENT RELATIONSHIP
BETWEEN CADDIE AND PGA TOUR GOLFER
Nicholas Schlereth
University of New Mexico
ABSTRACT:
The PGA Tour caddie is a position many people see but fail to recognise when
they enjoy a PGA Tour event. Caddies serve a vital role to the Tour player,
aiding in club selection, as well as course and atmospheric conditions during
a round of golf (Bruce, 1999). The dyadic employment relationship between
caddie and player is one that has been neglected in the literature. This paper
will examine the concept of the psychological contract as it relates to caddies
and the means in which they receive rewards. In an attempt to explain
rewards, the paper applies Lawler and Porter s 19 odel to the
psychological contract. It is the first time for the application of the
psy hologi al o tra t to La ler a d Porter s odel of oti atio ith
respect to creating a model to explain the employment relationship between
a caddie and the PGA Tour player.
Keywords: Reward Systems, PGA Tour, Psychological Contract, Employment
relationship
INTRODUCTION
The relationship between a PGA Tour player and their caddie is one that has
often been overlooked and the literature has neglected. In an attempt to add
to the literature base, this paper attempts to apply the concept of the
ps hologi al o t a t to La le a d Po te s odel of oti atio , addi g a
theoretical understanding to the dyadic employment relationship. Caddies are
employed by the PGA Tour golfer and receive all compensation and incentives
from the Tour player, creating a dyadic employment relationship. The duration
of this relationship could last the whole career of the Tour golfer or it could last
only a week. Traditionally the Tour player and caddie have a relationship that
lasts due to the familiarity established in the dyadic relationship. Viewing the
caddie and Tour player as an organisation striving for a common goal is the
perspective adopted in this paper.
The Tour player and caddie are viewed in this paper as an organisation or small
business. The Tour player is viewed as the entrepreneur who employs a team

2. A Conceptual Model Explaining the Employment Relationship between Caddie and
PGA Tour Golfer
2015 IJES VOL 23 NO 2 Page 27
of consultants such as fitness trainers, public relations specialist and personal
coaches to aid in the organisational mission of winning golf tournaments. The
caddie is viewed as an employee and not a consultant because he has a larger
i est e t i the o e all out o e of the Tou pla e s pe fo a e i
tournaments. The difference between the caddie and the consultants is that
the caddie works solely for the Tour player whereas the consultants
simultaneously work for other clients.
The Tour player and the caddie agree to the compensation structure for services
rendered for the week; the common arrangement is around $1,000 to $2,000
base salary for the week and then a percentage of the overall winnings by the
Tour player, ranging between 3-10% (Lubinger, 2011). The caddies are also able
to obtain sponsorship from companies due to their visibility during the
tournaments (Buteau, 2006). The PGA Tour has few regulatory policies for the
caddies, stating only that they must wear a collared shirt, pants that go to shoes
or shorts hemmed at the knee, and soft soled shoes while on course during a
tournament (Dodd, 2015). The PGA Tour does not interfere with the
caddie/Tour player employment relationship, leaving it up to the Tour player to
make the decision on whom they seek to hire (Miceli, 2015). While the PGA
Tour does not interfere with the employment relationship, do the caddies still
share in the reward systems that are installed by the PGA Tour for its players?
The dyadic relationship between caddie and Tour player is defined by a
traditional contract and a psychological contract. The psychological contract is
defined as an unwritten set of expectations of the employment relationship
(Schein, 1970, 1985). The caddies recently have expressed disdain towards the
PGA Tour for the working conditions they experience during PGA Tour events.
Caddies ha e e p essed that the feel like se o d lass itize s o the PGA
Tour and should have the same access and entitlements as their employers
(Madden, 2015). Caddies are not allowed in the club house during tournaments
and are typically relegated to separate areas, commonly tent structures, while
their employer is allowed in the plush country club club houses. While the
working conditions for caddies have come under scrutiny, it provides insight into
the conditions of the psychological contract of the caddie for their employment
relationship and their perceived position in the PGA Tour. The psychological
contract is based on intrinsic feelings of the employee and provides a conceptual
link to the model of motivation developed by Lawler and Porter.
The model of motivation introduced by Porter and Lawler (1967) delivers a
structure to evaluate rewards and the motivation of an organisational member
to contribute maximum effort to achieve the greatest performance for the
organisation. The perceived distributive justice of these rewards was found to
be an integral aspect to the overall performance of an employee (Porter &

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2015 IJES VOL 23 NO 2 Page 28
Lawler, 1968). Reward systems aid the organisation in motivating enhanced
performance as well as facilitating organisational culture (Chelladurai, 2006).
The model outlines the factors of effort, performance, rewards and satisfaction.
The underlying premise of the model is one that motivates the employees to do
their best on the job which will result in the best business outcomes for the
organisation (Chelladurai, 2006).
The model of motivation outlines two forms of rewards that are delivered to the
employee, intrinsic and extrinsic. Intrinsic rewards are described as those that
can only be experienced by the employee, including feelings like joy,
excitement, fulfillment (Csikszentmihalyi, 1978). Extrinsic rewards are those
that can be experienced by anybody and include items like bonuses, new offices,
or other financial benefits (Csikszentmihalyi, 1978). The paper will introduce a
conceptual model to aid in the explanation of the employment relationship
between the caddie and the PGA Tour player. The purpose of this paper is to
examine the reward systems that are utilised in the PGA Tour and the impact
experienced by the caddies.
Tour players are considered independent contractors and only receive winnings
from the Tour if they perform at a level that allows them to make the cut and
play throughout the entire tournament (Noer, 2012). Players rely on
sponsorship contracts in the same manner that the Tour does to ensure their
own livelihood. Players must qualify for their PGA Tour card, which allows them
access to events on Tour free of any entrance fees. The Tour provides a lucrative
reward system for the players, with the average amount the winner takes home
each tournament totalling over $1 million (Burke, 2012). Although the caddie is
viewed as an employee of the Tour player, is he working for the player or the
PGA Tour?
LITERATURE REVIEW
Model of motivation
Lawler and Porter (1967), introduced the model of motivation which provided a
systematic explanation to aid in the understanding of employee satisfaction due
to the rewards that are offered to them by the organisation. The model is based
the four components: effort, performance, rewards and satisfaction. The
model has been utilised to help explain organisational behaviours of employees
during organisational change (Armenakis, Brown, & Mehta, 2011).
Employee effort is moderated in the model of motivation by the perceived
likelihood of receiving a reward from the organisation for the effort displayed
towards the organisation (Porter & Lawler, 1968). The rewards from the
organisation have been described as the organisational behaviour of perceived

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2015 IJES VOL 23 NO 2 Page 29
organisational support (Eisenberger, Fasolo, & Davis-LaMastro, 1990). The level
of perceived organisational support displayed from the organisation to the
employees has been linked to employee satisfaction (Eisenberger et al., 1990).
Performance of an employee has been defined as behaviours that are congruent
with the organisational goals and values as well as the standards that are
assigned by the organisation (Christen, Iyer, & Soberman, 2006). Congruent
with Lawler and Po te s odel of otivation, the level of recognition that is
received by the employee aids in employee performance; recognition to the
employee can be performed through intrinsic or extrinsic rewards (Luthans,
2000). The recognition from the organisation must be perceived as authentic or
else the employee will disregard the behaviour from the organisation (Furtner,
Rauthmann, & Sachse, 2011; Luthans, 2000).
The rewards to the employee must be authentic in nature for the employee to
truly perceive that the organisation cares about their effort (Eisenberger et al.,
1990). The rewards could either be intrinsic rewards which are classified as
rewards that bring joy and are derived by the individual; extrinsic rewards are
derived from the environment and are commonly in the form of a financial
bonus or other rewards that can bring social satisfaction amongst peers
(Chelladurai, 2006). The employees must also perceive that organisational
justice was satisfied in the distribution of the rewards (Colquitt, Greenberg, &
Greenberg, 2003).
Employee satisfaction is dependent on the reward that is distributed by the
organisation in the likelihood of receipt of the reward and the overall quality of
the reward (Lawler III & Porter, 1967). The level of satisfaction is correlated to
the perceived organisational support that is displayed by the organisation to
moderate the effort of the employee (Chiu, Francesco, et al., 2003; Eisenberger
et al., 1990). The overall level of motivation of the employee has been shown
to be positively correlated to the attitude toward to organisation (Chiu et al.,
2003). Lawler and Porter (1967) have been shown to provide a sufficient model
of explaining employee motivation as moderated by the reward systems
established by the organisation.
PSYCHOLOGICAL CONTRACT
The psychological contract serves a unique role for an employee in an
organisation because it outli es the e plo ee s pe eptio of thei e plo e t
relationship with the organisation. The contract is the cornerstone of nearly all
employment relationships; coupling the psychological and formal contracts
makes up the total employment organisation (Farnsworth, 1967).

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2015 IJES VOL 23 NO 2 Page 30
The formal contract explicitly states the terms of employment as well as the
consideration that will be received by the contracting parties. The terms of the
contract include elements such as working conditions, where the work will be
conducted and the compensation received for work (Farnsworth, 1967). In the
most basic form, a formal contract has been seen in the literature as a legal
agreement between two parties for some form of work or service (Farnsworth,
1967; Macneil, 1973; Schein, 1985). The psychological contract differentiates
itself from the formal contract because it is not a formal agreement but is one
that is conceptualised by the employee in the organisation.
The psychological contract was conceived as an element of organisational
behaviour from an employee towards their employing organisation, and it
affects the e plo ee s pe eptio s of o ki g life i the organisation (Schein,
1985). The concept of the psychological contract is bound in equity theory, in
that the employees want to be treated fairly and equitably by their employer
(Rousseau, 1989). Scholars have noted the impact of the psychological contract
in organisations and violating the psychological contract perceived by the
employee has been shown to lead to employee disconnect and displeasure with
the organisation (Arnold, 1996; Carmeli, 2007; Kickul & Lester, 2001; Restubog,
Bordia, & Tang, 2007). The importance of psychological contract maintenance
has been found to be crucial to ensuring continuity in the workplace.
A well-developed organisational culture has been found to be essential in the
maintenance of workplace stability. A stable workplace is one that works in a
steady manner towards organisational goals without being derailed by change
(Beal & Ghandour, 2011). When change occurs in the organisation, it is found
that organisations with established and understood organisational cultures are
able to best endure organisational change, while minimising the impact to
employee psychological contracts (Carmeli, 2007; Leana & Barry, 2000).
Organisational culture is necessary to keep employees in the organisation
focused on the organisational goals and understanding of the reward systems
that are in place to compensate for exemplary behaviour (Armenakis et al.,
2011; Schein, 2010). The employee understanding of the organisational value,
allows for the building of the psychological contract on the basis of equitable
treatment from the organisation.
The psychological contract built on an understanding of equitable treatment has
been shown to be relevant in the distribution of rewards (Kickul & Lester, 2001).
The distribution of rewards in a fair and equitable manner has been shown to
motivate employees and lead to overall employee satisfaction (Lawler & Porter,
1967). The equitable distribution of tangible extrinsic rewards has been shown
to lead to the development of the psychological contract amongst employees
and potential new employees during the recruiting phase in the employment

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2015 IJES VOL 23 NO 2 Page 31
cycle (Rousseau, 1989). A great majority of the literature dealing with
psychological contracts has been focused on the corporate business sector, and
has been neglected in the sport management literature.
The psychological contract has been explored in sport literature, examining the
use of volunteers for sports organisations and events. Volunteers are a major
labour force in sport and are often relied upon to ensure that sporting events
are able to function as anticipated; volunteers were found to construct
psychological contracts towards the sporting organisation for which they were
volunteering (Nichols, 2013). Volunteers stated that they developed
psychological contracts in reference to their treatment by the organisation and
report consistent feelings as found with employees in the organisation. The
important role that volunteers play in the orchestration of sporting events leads
to the increasing necessity to provide management of volunteers and ensure
that they are constructing a psychological contract that is consistent with
organisational values (Blackman & Benson, 2010). The limited findings from
sport allow for the ability to enhance the literature through the introduction of
the model for the explanation of the employment relationship between caddie
and PGA Tour player.
CONCEPTUAL MODEL FOR CADDIE EMPLOYMENT RELATIONSHIP
A new conceptual model seeking to enhance greater research in the caddie-Tour
player employment relationship is necessary, as the employment relationship
has recently come under scrutiny from the caddies and their treatment from the
PGA Tour. The model is ground in the theory of the psychological contract,
based on the concept of implied or intrinsic feelings. The employment
relationship between the caddie and Tour player is one that, for the purpose of
the model, is built on intrinsic values and the intrinsic rewards that are
experienced by the caddie from the Tour player. The model will be analysed first
by the psychological contract and second by the model of motivation from
Lawler and Porter (1967).
PSYCHOLOGICAL CONTRACT
The psychological contract with the caddie is one that is built upon the
anticipation of working with the Tour player. The relationship between the Tour
player and caddie is often expressed as a team and is also viewed as a dyadic
employment relationship (Lavallee, 2012). Lavallee (2012) argued that the role
between caddie and golfer is one of shared appreciation and admiration; often
the golfer relies on the caddie to make decisions when on the course pertaining
to shot and club selection. This relationship is often seen in the business sector
with partners in a business, but with one difference; in the business world, a
security exists between business partners due to shared risk-taking in a

7. Nicholas Schlereth
2015 IJES VOL 23 NO 2 Page 32
pa t e ship ag ee e t. This sha ed isk taki g is ot a ele e t of the addie s
partnership with the Tour golfer.
The caddie-Tour player employment relationship is bound by a formal contract
which outlines compensation and extrinsic rewards that are to be experienced
by the caddie if the Tour player plays well and receives a bonus. The
psychological contract that governs the employment relationship is built upon
the addie s e pe tatio s i o ki g for the Tour player. Caddies typically are
former players, some of whom were professional players and are often seen as
strategists for the golfer on the course (Carrick & Duno, 2000). In working with
the Tour player, the caddie wants to make the overall experience with the golfer
enjoyable and successful; caddies have reported that this brings them joy or
intrinsic rewards (Bruce, 1999; Lavallee, 2012). Caddies oti atio s a d
expectations of the psychological contract are founded on the idea of equitable
distribution of rewards accumulated in the employment relationship but they
also believe that their employment should be recognised by the sport governing
bodies.
The ps hologi al o t a t that appea s to e i pla e fo a ajo it of golfe s
caddies is one that is based on comradely association with their employer and a
working rapport that is established and enables the focus towards a common
goal. The organisational culture which governs the dyadic relationship is unique
to each employment situation and no two are the same, adding to the
complexity in the creation of this model. The one constant between each
relationship is that each golfer wants to win the tournament for which they are
playing and this is understood and incorporated into the psychological contract
of the caddie. This shared common goal of each caddie-Tour player
employment relationship permits universal applicability with respect to the
psychological contract.
MODEL OF MOTIVATION
The model of motivation introduced by Lawler and Porter (1967) allows for the
enhanced understanding of caddie-Tour player employment relationships. The
model of motivation is comprised of two reward systems that govern employee
motivation to perform for the organisation. The model of motivation focuses on
intrinsic and extrinsic motivation. The model introduced in this paper pays
attention to the intrinsic motivation experienced by the caddie that reaffirms
the psychological contract experienced by the caddie.
The intrinsic rewards that are experienced by the caddie have been reported as
joy, excitement, and satisfaction when their boss, the Tour player, performs well
in competition (Lavallee, 2012). The findings of the intrinsic rewards that are
experienced by the caddie directly correlate with the model of motivation and

8. A Conceptual Model Explaining the Employment Relationship between Caddie and
PGA Tour Golfer
2015 IJES VOL 23 NO 2 Page 33
the intrinsic rewards path that is outlined in the model. According to the model,
an employee who recognises intrinsic rewards has been found to enjoy greater
overall satisfaction with their employment relationship (Lawler III & Porter,
1967). The addie s ealisation of the intrinsic attributes that they perceived in
their psychological contract aids in the ability to have a long lasting employment
relationship with the Tour player.
Although not the intended purpose of the model introduced in this paper, the
author cannot neglect the extrinsic attributes of the model of motivation. The
caddie and Tour player agree to the extrinsic rewards in the formal contract but
Tour players deliver other forms of organisational support to their employees.
The extrinsic rewards have been shown to aid in the overall employment
relationship but do not appear to be as important as the intrinsic rewards that
reinforce the psychological contract (Lubinger, 2011).
The reward system that is established for the Tour caddie is one that is derived
et ee the Tou pla e a d thei addie. The addie s overall effort is derived
from the relationship with the Tour player and the belief that they are aiding in
the overall success of the player. The caddie typically serves a role which
provides a range of services to the player from coach, psychologist, and
motivator during their time of employment (Lavallee, 2012).
Organisational support that is displayed to the caddie from the Tour player can
range from lodging and travel to tournaments as well as assistance with apparel
f o the Tou pla e s spo so (Lubinger, 2011). The caddie serves in a
supporting role to the Tour player, so the level of perceived organisational
support displayed by the Tour player to their caddie could be critical to the
overall success of their relationship (Eisenberger et al., 1990). The caddie does
not draw any reward system from the PGA Tour but with the pending law suit
against the Tour, the caddies are seeking to gain access to the Tour reward
system.
The PGA Tour reward system is designed to benefit their sponsors, tournament
organisers and players. The reward system that is imposed by the Tour provides
extrinsic benefits to Tour players by providing larger financial benefits through
increasing tournament winnings; it benefits the tournament organisers by
providing extrinsic benefits through the opportunity to benefit local charities
(PGA Tour, 2014). The Tour provides intrinsic benefits to the sponsors of the
tournaments by bringing them social connections with their target
demographics.
The caddies are seeking to gain access to the PGA Tour reward system which
they currently do not gain through their employment. The model of motivation

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2015 IJES VOL 23 NO 2 Page 34
introduced by Lawler and Porter does not account for external stakeholders
drawing on the reward system of an organisation. The caddies are seeking
extrinsic rewards from the PGA Tour with access to the revenue that is shared
with the Tour players. The caddies in their lawsuit against the PGA Tour are
claiming a failure of distributive justice on the PGA Tour. The caddies are not
employees of the PGA Tour so access to this reward system should not be a
method of motivation for their performance as an employee.
CONCLUSIONS
The purpose of this paper was to introduce a new conceptual model for the
understanding of the employment relationship between a Tour player and their
caddie. The model incorporated the concept of the psychological contract to
the model of motivation introduced by Lawler and Porter. The inclusion of the
psychological contract to the model of motivation allows for a deeper
understanding of how the intrinsic values and expectation constructed in the
psychological contract are rewarded in the model of motivation, eventually
leading to the increased commitment and satisfaction of the caddie.
The psychological contract that is employed by the caddie focuses on the
intrinsic values of the role and how the success of the Tour player can be
enhanced. The employment relationship between the caddie and Tour player
as explained in the model is guided by intrinsic values and motivation due to the
anonymous nature often experienced by the caddie. The Tour player will often
acknowledge the role of the caddie with respect to the success they experienced
during a golf tournament. The verbal praise enjoyed by the caddie from their
employer is one of the forms of intrinsic rewards as expressed by Lawler and
Po te s odel. While i t i si e a ds a e the ai fo e that drives the model
which is introduced in this paper, extrinsic rewards also have an impact on the
employment relationship between caddie and Tour player.
The reward system of the PGA Tour does provide an incentive to the caddie in
an indirect manner through increased tournament winnings. As stated earlier,
the employment contract between the Tour player and caddie typically has a
clause where the caddie receives a percentage of the winnings of the Tour
player. The increase in the extrinsic reward provided to the Tour players is
experienced by the caddies through the larger pool of available winnings for
each tournament.
The motivation for a caddie to seek their employment is described as a love for
the sport of golf and a desire to aid in the performance of the golfer (Bruce,
1999; Lavallee, 2012). Overall, caddies are satisfied with their jobs because, just
like professional athletes, they enjoy the elements of sport and the experiences
that are garnered through participation (Carrick & Duno, 2000). The application

10. A Conceptual Model Explaining the Employment Relationship between Caddie and
PGA Tour Golfer
2015 IJES VOL 23 NO 2 Page 35
of the model of motivation to the employment relationship of the caddie
enables the explanation of the emotional rewards experienced by the caddie.
FUTURE DIRECTIONS
The academic literature has rarely examined the golf caddie and their
employment relationships. This paper attempts to apply the model of
motivation from Lawler and Porter to better understand the employment
relationship of the Tour caddie. The application of this model was able to
understand conceptually the intrinsic and extrinsic reward systems that affect
the caddie.
The paper has provided a conceptual guideline for the understanding of the
intrinsic and extrinsic elements that lead to the satisfaction of the Tour caddie.
Empirical research needs to be conducted into the rewards systems that affect
the employment relationship of the Tour caddie. The current paper has a
limitation in this respect because it is conceptual in nature and has only
attempted to expand the literature regarding this relationship. A greater
understanding of this relationship is necessary due to the increasing popularity
and revenue generation experienced by the PGA Tour.
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