Bread and roses: Justice and the distribution of financial and socioemotional rewards in organizations |
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Authors: | Joanne Martin Joseph W Harder |
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Institution: | (1) Graduate School of Business, Stanford University, Stanford, California;(2) The Wharton School of the University of Pennsylvania, 19104 Philadelphia, Pennsylvania;(3) Graduate School of Business, Stanford University, 94305 Stanford, California |
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Abstract: | Two studies tested the hypothesis that organizational decision makers attempt to counterbalance contribution-based distributions
of financial/material rewards (a “merit” system that creates monetary inequality) with need- and equality-based allocations
of socioemotional rewards, in effect allocating “roses” in lieu of more “bread”. Experiment 1 had a two-factor design (Reward
Type × Magnitude of Income Inequality); 67 subjects were given a managerial in-basket exercise in which they expressed their
preferences for a variety of distributive justice rules for seven different types of rewards. Experiment 2 (N=39) had the
same design, with a stronger manipulation of magnitude of inequality. Results of the two experiments were consistent with
the counterbalancing hypothesis, irrespective of magnitude of income inequality; financially related rewards (e.g., profit
sharing, office space, company cars) were distributed with more emphasis on contribution rules (i.e., performance, status),
while more socioemotional rewards (e.g., help for an employee's spouse, friendliness) were allocated with more emphasis on
equality among individuals, equality across groups, and personal need. |
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Keywords: | rewards equality justice distributive justice merit pay |
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