High Compensation and Unethical Reciprocity

2021 ◽  
pp. 014920632110405
Author(s):  
Long Wang ◽  
Fei Song ◽  
Chen-Bo Zhong

This research extends social exchange theory by investigating unethical reciprocity induced by high compensation in employee–manager exchange relationships. Two experimental studies based on behavioral games showed that even after employees had reciprocated their managers’ wage offers with commensurate work efforts, managers’ previous compensation decisions still had potent effects on employees’ subsequent ethical behaviors. Specifically, Study 1 showed that high wages led employees to engage in unethical reciprocity to benefit their managers at the expense of honesty. In addition, when managers had the possibility of rewarding employees’ unethical reciprocity, only underpaid employees demonstrated more unethical reciprocity, and high-paid employees were not affected by their potential personal payout. Study 2 replicated Study 1’s results using different designs and behavioral games. Its results consistently showed that high-paid employees were more likely to act dishonestly to advance their managers’ interests, irrespective of their own payouts. Finally, Study 3 complemented our experimental results with initial field evidence, suggesting that higher salaries were positively related to the likelihood of police officers engaging in unethical and illegal actions to help their organization. We discuss our results by applying cross-disciplinary insights on exchange models and compensation to organizational studies.

2013 ◽  
Vol 41 (7) ◽  
pp. 1115-1123 ◽  
Author(s):  
KeXin Guan ◽  
ZhengXue Luo ◽  
JiaXi Peng ◽  
Zhen Wang ◽  
HaiTing Sun ◽  
...  

We examined the relationship among team networks, leader-member exchange (LMX), and team identification in the workplace. Social network theory, social exchange theory, and social identity theory served as references for our theoretical propositions and analyses. We collected data from a sample of 223 teams of military personnel, serving in the artillery in West China. We found that the team networks had a significant effect on team identification. Further, the variance and the mean for LMX in teams interacted in influencing team identification (β =-.893, p < .01). Our findings indicated that creating productive networks in teams would be useful to enhance team identification, the effect of which may be carried on through to building exchange relationships between leader and follower.


2016 ◽  
Vol 7 (1) ◽  
pp. 4-35 ◽  
Author(s):  
Carlos-Maria Alcover ◽  
Ramón Rico ◽  
William H. Turnley ◽  
Mark C. Bolino

In recent years, scholars have increasingly recognized that the theoretical underpinnings of employee-organization relationships (EOR) are in need of further extension in light of recent organizational changes. In prior research, the study of EOR has been based on social exchange theory, and the psychological contract (PC) has played a central role in understanding this crucial aspect of organizational life. The main objective of this paper is to provide an integration of the existing literature by adopting a multiple-foci exchange relationships approach. Specifically, we looked at identification; the quality of relationships and exchanges with the leader, coworkers, and other organizational agents; justice perceptions involving several organizational sources; and perceived organizational, leader, and coworker support to expand our understanding of the PC. Overall, we advocate a multiple-foci exchange relationships approach that will ultimately enable us to develop a more comprehensive understanding of the complex nature of PCs in 21st century organizations.


2018 ◽  
Vol 44 (2) ◽  
pp. 183-203
Author(s):  
Richard C. Helfers ◽  
Paul D. Reynolds ◽  
Jon Maskály

Social exchange theory is one of the prominent paradigms used to explain the processes linking organizational treatment of employees to their job performance. However, the theoretical link between perceived organizational treatment and police deviance has not been fully explored. This research addresses this gap by analyzing the relationship between perceptions of organizational justice and the use of police self-protective behaviors (SPBs) using organizational support and organizational indifference as ad hoc indicators of the social exchange process. Data were collected using an online self-report survey distributed to police officers in a southern state who are members of a police officer association ( n = 1,861). Consistent with previous social exchange research, the findings generally support the idea that fairness is related to SPBs, but largely to the extent that it enhances the social exchange in terms of increasing perceptions of organizational support and reducing perceptions of organizational indifference, which both directly affect an officer’s use of SPBs, and are a type of police deviance. Specific findings, relevant policy implications, and directions for future research are discussed.


2016 ◽  
Vol 23 (3) ◽  
pp. 423-436 ◽  
Author(s):  
Yvonne Brunetto ◽  
Stephen Teo ◽  
Kate Shacklock ◽  
Rod Farr-Wharton ◽  
Art Shriberg

AbstractThis study used two theoretical lenses (positive organizational behaviour and social exchange theory) to examine the influence of an individual attribute – psychological capital (PsyCap), and an organizational factor – leader–member exchange, upon police officers’ perceptions of learning options (teamwork and training) and affective commitment. A cross-sectional design using a survey-based, self-report strategy was used to collect data from 588 frontline police officers in the United States. The findings indicate that leader–member exchange explained almost a fifth of PsyCap and together leader–member exchange and PsyCap accounted for almost a third of police officers’ satisfaction with training. Further, leader–member exchange, PsyCap, training and teamwork collectively explain almost half of affective commitment. One implication of the findings is that if senior management want police officers to be more committed, they have to improve officers’ relationships with their supervisors, upskill them (especially their supervisors) in PsyCap, and improve teamwork opportunities and processes.


2012 ◽  
Vol 32 (1) ◽  
pp. 113-137 ◽  
Author(s):  
David N. Herda ◽  
James J. Lavelle

SUMMARY This study examines auditor commitment to clients and how it affects the level of value-added audit service (e.g., management letter comments) provided to the clients. Our research model is based on social exchange theory. Using a sample of 204 auditors at two public accounting firms that principally serve privately held clients, we find that perceived fair treatment by the client predicts perceived support from the client, and perceived support predicts auditor commitment to the client. We find that client commitment is positively associated with the extent of value-added audit service provided to the client. The results highlight the important role that perceptions of client fairness play in engendering social exchange relationships between individual auditors and clients. Higher-quality relationships lead to higher levels of service that go beyond the basic requirements of the audit itself.


2014 ◽  
Vol 43 (5) ◽  
pp. 1447-1471 ◽  
Author(s):  
Prashant Bordia ◽  
Simon Lloyd D. Restubog ◽  
Sarbari Bordia ◽  
Robert L. Tang

Applications of social exchange theory in organizational research have tended to ignore the resource context and its impact on a focal dyadic social exchange. Integrating insights from the social exchange theory and the conservation of resources theory, we examine the role of resource availability in the social exchange of resources. The type of social exchange we focus on is the psychological contract. Specifically, we examine the antecedents and consequence of breach of employee obligations to an employer. We test our predictions using multisource data obtained from employees over three measurement periods in Sample 1 and matched triads (employee, supervisor, and coworker) in Sample 2. We found that family–work conflict (FWC) and breach of employer obligations are positively, while conscientiousness is negatively, related to employees’ perceptions of breach of their obligations. Conscientiousness moderated the FWC–breach relationship: Employees low on conscientiousness have a stronger positive relationship between FWC and breach of employee obligations. Breach of employee obligations is, in turn, negatively related to employee career progression (a job promotion over the following year in Sample 1 and supervisor-rated promotability in Sample 2). Findings highlight the interconnected nature of demands, resources, and obligations and that dyadic social exchange obligations should be examined in the context of other demands.


2018 ◽  
Vol 11 (3) ◽  
pp. 517-522
Author(s):  
Mark A. North ◽  
Dylan Jensen

The evolution of organizational working relationships is always a timely discussion, especially in an age where globalization, remote workforces, and most recently artificial intelligence, to name just three, hold great promise but also concern for organizations’ capabilities to build on the strengths of traditional relationship theories while looking forward to and blazing paths toward future relationship theories. We appreciate Chernyak-Hai's and Rabenu's (2018) questioning of the “old” social exchange theory (SET) as a relevant organizing framework and their proposition of a “new” or hybrid workplace relationship theory to reflect today's workforce. In short, Chernyak-Hai and Rabenu practice good science by not throwing out what does not seem to fit but rather helping science evolve into what it needs to become (see Gergen's [2001] great commentary on ill-advised practices of ending traditions when criticisms are levied). We also admire Chernyak-Hai's and Rabenu's willingness to invite “additional organizational behavior [OB] theories” (p. 476) to join the conversation in defining what the new era workplace relationship might look like. With that invitation and a little latitude in what could be defined as “an OB theory,” we propose that the working alliance (WA; Bordin, 1979) be given space in that narrative. The substance of our commentary will describe the WA connection with Chernyak-Hai and Rabenu's new or hybrid theory, principally as it relates to issues regarding (a) tension toward equality and fairness and (b) mutual reciprocity in exchange relationships.


2009 ◽  
Vol 5 (3) ◽  
pp. 289-302 ◽  
Author(s):  
Lynn M. Shore ◽  
Jacqueline A-M. Coyle-Shapiro ◽  
Xiao-Ping Chen ◽  
Lois E. Tetrick

Social exchange theory has provided the dominant basis for understanding exchange relationships in organizational settings. Despite its predominance within the management field, there are a number of unaddressed issues. This special issue seeks to further social exchange research in work settings. We differentiate social from economic exchange and highlight the moderating role of cultural and individual differences in explaining the outcomes associated with social exchange relationships. We introduce the ideas of content, process, and mixed models of exchange to reflect the different emphases given to the amount and type of resources exchanged, the quality of the relationship, and a combination of both. The five papers in this special issue illustrate these models. We discuss the applicability of social exchange theory across cultural contexts and present suggestions for future research.


2021 ◽  
pp. 105960112098687
Author(s):  
Elena Martinescu ◽  
Wiebren Jansen ◽  
Bianca Beersma

Ample experimental evidence shows that negative gossip fosters cooperation in groups by increasing individuals’ reputational concerns. However, recent field studies showed that negative gossip decreases organizational citizenship behavior (OCB) among its targets (i.e., people whom gossip is about). Bridging these findings, we study the role of social inclusion in explaining how negative gossip affects targets’ engagement in OCB. Based on social exchange theory, we predict that targets of negative gossip experience low social inclusion. In turn, we propose that low social inclusion leads to low OCB of gossip targets. Results of three studies, a correlational study ( N = 563), a laboratory experiment ( N = 85), and an online scenario experiment ( N = 597), showed that being the target of negative gossip reduced social inclusion and indirectly decreased OCBs. Our multi-method approach bridges findings from research conducted in organizations and in laboratory experiments and offers a more nuanced understanding of the effects of negative gossip on targets’ behavior. We show that due to its detrimental effect on targets’ social inclusion, negative gossip may not be as effective for enabling sustainable cooperation as experimental studies claim it to be.


Author(s):  
Gisela I Gerlach

Due to decentralization, flat organizational structures and prevalence of team work, employees interact more frequently and intensively within horizontal relationships with coworkers than within vertical relationships with supervisors. The present study contributes to a more complete understanding of antecedents and outcomes of local, interpersonal workplace relationships by simultaneously investigating employee–supervisor and employee–coworker relationships. Drawing on organizational justice theory and social exchange theory as well as data collected from 571 employees at two points in time, this study explores how justice perceptions affect social exchange relationships with supervisors and coworkers, and identifies mechanisms through which these, in turn, enhance employee job performance. Results suggest that informational and interpersonal justice differentially affect the quality of employee–supervisor and employee–coworker relationships, underlining the relevance of considering both supervisors and coworkers as sources of justice. Moreover, the findings indicate that employee–supervisor and employee–coworker relationships contribute to job performance, but through distinct paths. Job satisfaction mediates the link between both social exchange relationships and job performance, while quality of employee–coworker relationships further enhances job performance through employees’ motivation to engage in learning and knowledge sharing.


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