On the relationship between objective increases in pay and employees' subjective reactions

This study explored whether two principles describe the relationship between the size of a pay increase (a bonus expressed as a percentage of current salary) and the attractiveness of that increase. Based on a sample of sales personnel (N = 639) and consistent with the constant proportion principle of the psychophysical law, pay increase attractiveness was unrelated to current salary level after controlling for the size of the percentage increase. In addition, at any given salary level, the relationship between the size of the increase and its attractiveness was curvilinear. The attractiveness of larger and larger bonus percentages continues to increase, but at a decreasing rate supporting the principle of diminishing returns.     

Disentangling horizontal pay dispersion: Experimental evidence

Although horizontal pay dispersion has been explored extensively using cross‐sectional field methods, it has received little attention using the control available through experimental designs. Many of the questions relevant to pay dispersion research can be addressed by taking an individual‐level experimental approach because this allows for clean separation of pay policies and individual effects. In this paper, we hypothesize both the motivation‐based and affect‐based effects of pay dispersion policies and test our hypotheses with a sample of over 400 participants in a real‐pay, real‐effort experiment. Results of the experiment provide support that two pay dispersion‐related pay policies, performance‐based pay dispersion and allocation criteria, have unique effects. Whereas motivation and performance effects are direct, pay satisfaction and interest in continuing work effects are the result of interactions, incorporating the performance level of workers. In follow‐up analyses, we find evidence that the temporal nature of responses to pay dispersion should be incorporated into future studies of pay dispersion.     

Gainsharing and women's and men's relative pay satisfaction

There is some evidence that women have equal or higher pay satisfaction than similarly situated men, even though they may earn less than these men. Using Major's (1994) model of entitlement, this study examined gender differences in pay satisfaction in two companies before and after gainsharing bonus programmes were introduced. Results indicated that women had higher pay satisfaction than men prior to the introduction of gainsharing and there was some evidence that this difference was greater among lower‐paid employees. Women did not exhibit higher pay satisfaction after gainsharing was introduced. The potential association of gainsharing with changes in female–male pay satisfaction is discussed. Copyright © 1999 John Wiley & Sons, Ltd.     

On a combined theory of pay level satisfaction

For decades, research on pay level satisfaction has focused on two theories and one approach: the direct link theory, the discrepancy theory, and the no‐difference‐scores approach. However, there are still unsolved puzzles facing pay level satisfaction research. We develop a combined theory to consider the impact of the interaction of reported pay and pay discrepancy. With this newly developed theory, we expect that (a) both reported pay and pay discrepancy have main effects on pay level satisfaction; (b) reported pay and pay discrepancy also interact with each other, in that the effect of pay discrepancy on pay level satisfaction decreases as pay level increases; (c) equitable payment is more related to pay level dissatisfaction when pay level is low; and (d) overpayment in general is related to pay level satisfaction, not dissatisfaction. An empirical study (N = 481) using four types of comparison standards was conducted, and the results supported our predictions. The findings of our study have important implications for both academic research and management practice.     

Is it pay levels or pay raises that matter to fairness and turnover?

Two studies examined the relationship between actual pay and distributive and procedural justice, and the extent to which these perceptions were related to two important pay satisfaction dimensions, pay level and pay raise, and ultimately, impacted turnover. For each study the measures of pay and justice variables were obtained on a cross‐sectional basis, while the measure of turnover was necessarily lagged. Results showed that distributive justice mediated the relationship between pay and both pay level satisfaction and pay raise satisfaction. Furthermore, distributive justice was a stronger predictor of pay level satisfaction; whereas procedural justice was a stronger predictor of pay raise satisfaction. Procedural justice also played a moderating role in Study 2. The study also showed that only pay raise satisfaction was significantly and negatively related to turnover in Study 1, and to turnover via turnover intention in Study 2. Results support the value of considering pay satisfaction as multidimensional when evaluating justice issues in a compensation context. Copyright © 2005 John Wiley & Sons, Ltd.     

Inspired to perform: A multilevel investigation of antecedents and consequences of thriving at work

Emerging research evidence across multiple industries suggests that thriving at work is critically important for creating sustainable organizational performance. However, we possess little understanding of how factors across different organizational levels stimulate thriving at work. To address this gap, the current study proposes a multilevel model that simultaneously examines contextual and individual factors that facilitate thriving at work and how thriving relates to positive health and overall unit performance. Analysis of data collected from 275 employees, at multiple time periods, and their immediate supervisors, representing 94 work units, revealed that servant leadership and core self‐evaluations are 2 important contextual and individual factors that significantly relate to thriving at work. The results further indicated that thriving positively relates to positive health at the individual level, with this relationship partially mediated by affective commitment. Our results also showed that collective thriving at work positively relates to collective affective commitment, which in turn, positively relates to overall unit performance. Taken together, these findings suggest that work context and individual characteristics play significant roles in facilitating thriving at work and that thriving is an important means by which managers and their organizations can improve employees' positive health and unit performance.     

Conflict,justice, and inequality: Why perceptions of leader–member exchange differentiation hurt performance in teams

To better understand why leader–member exchange (LMX) differentiation in teams may be detrimental to individual and team performance, we propose that team members' perception of LMX differentiation (PLMXD) is more important than statistical measures of LMX differentiation. Specifically, we hypothesize a multilevel model in which relationship conflict and procedural justice (climate) mediate the relationships of individual and collective PLMXDs with individual and team performance, respectively. Using a sample of 235 individuals in 53 teams, we found that individual PLMXD was negatively related to individual performance through relationship conflict perceptions, controlling for LMX. At the team level, collective PLMXD was negatively related to team performance through procedural justice climate and relationship conflict, controlling for a statistical measure of LMXD. Theoretical implications and directions for future research are explored.     

Personality and teamwork behavior in context: The cross‐level moderating role of collective efficacy

This research examines whether the relationship between an individual's personality and their behavior within a team is contingent on the team's overall perception of its capability. Individuals were peer‐rated on the extent to which they displayed interpersonal and performance management teamwork behaviors over the course of an 8 week business simulation. The personality trait of agreeableness predicted interpersonal teamwork behavior, while the personality traits of conscientiousness and core self‐evaluation (CSE) predicted performance management behavior. Multilevel analysis showed that collective efficacy influenced the extent to which an individual engaged in both types of behavior, and was also a cross‐level moderator of the relationship between agreeableness and interpersonal behavior and the relationship between CSE and performance management behavior. At the team level, interpersonal behavior mediated between collective efficacy and team performance. The study's results show that in team settings the personality and individual behavior relationship may depend on group level confidence perceptions. Copyright © 2010 John Wiley & Sons, Ltd.     

Collective fit perceptions: A multilevel investigation of person–group fit with individual‐level and team‐level outcomes

This study describes a multilevel examination of person–group (PG) fit perceptions in a sample of 1023 individuals working in 92 teams at a private sector R&D firm. Using confirmatory factor analysis and multilevel random coefficient modeling, we provide evidence that perceptions of team‐level collective fit are unique from aggregated individual‐level PG fit perceptions at the individual and team levels. We demonstrate that collective values‐based and abilities‐based fit perceptions showed unique and positive relationships with team cohesion, team efficacy, and team performance, after accounting for aggregated individual perceptions of PG fit. Results also demonstrate that cohesion partially mediates the relationship between collective fit and team performance. Cross‐level effects were also supported, indicating that collective fit explains additional variance in individual‐level outcomes, beyond individual‐level PG fit perceptions. The usefulness of employing a multilevel approach to studying PG fit is discussed. Copyright © 2014 John Wiley & Sons, Ltd.     

The effects of self‐emotion,counterpart emotion,and counterpart behavior on negotiator behavior: a comparison of individual‐level and dyad‐level dynamics

This study expands the negotiation literature by examining how negotiator behavior is predicted by various emotions felt by the negotiators and their counterparts and by counterpart negotiation behavior. Using hierarchical linear modeling, we also compare individual‐ and dyad‐level processes that lead to negotiator behavior and outcomes. The results from a dyadic negotiation simulation showed that both the valence and agency of negotiator and counterpart emotions need to be considered to understand the roles of emotion in negotiator behavior. Negotiators tend to reciprocate counterparts' integrating, compromising, and dominating behaviors, but they also offer complementary (or matching) responses to the counterparts' dominating and yielding behaviors. Integrating behavior was more dependent on dyad‐level interpersonal dynamics than were the other behaviors. The comparison of negotiator‐level and dyad‐level results suggests that negotiation needs to be understood in the context of collective exchanges as well as individual‐level cognitive processes. Copyright © 2005 John Wiley & Sons, Ltd.     

Subjective time in organizations: Conceptual clarification,integration, and implications for future research

Despite the rapid growth of organizational research on subjective time, the extant literature is fragmented due to a lack of conceptual clarification and integration of temporal constructs. To address this fragmentation, we synthesize temporal research from both organizational behavior and adjacent disciplines (i.e., strategy, entrepreneurship, and organizational theory) and introduce a framework that allocates temporal constructs according to their basic conceptual nature (trait–state) and level of analysis (individual–collective). We employed the Linguistic Inquiry and Word Count text analysis to determine the trait–state property of the constructs and a coding method to determine their level of analysis. This framework categorizes four generic types of subjective time: individual temporal disposition, individual temporal state, collective temporal state, and collective temporal disposition. We clarify the conceptualizations of the temporal constructs belonging to each of the four archetypes of subjective time and review their key findings in the organizational literature. Based on this integrative framework, we identify critical knowledge gaps in the current state of research and chart a future agenda with specific suggestions.     

An investigation into pay valence and performance in a pay-for-performance field setting

Inconsistent findings have been reported in the few studies investigating the relationship between the perceived value of pay and incentive performance. One hundred and seventy-eight female incentive employees with a nine-week, non-judgmental performance measure responded to a developed valence of pay scale. This measure used items assessing the perceived ability of pay to address employee needs. Three factor-scales were found within these items. Support for the hypothesized positive relationship between pay valence and incentive performance was found, dependent on which of the three scales was used. These findings provide initial insight into the means by which pay, with its ability to address different needs, might provide differential employee motivation and performance levels. This study and future research issues are discussed.     

Determinants of safety priorities in transport – The effect of personality,worry, optimism,attitudes and willingness to pay

Much research within risk has investigated risk perception and how risk behaviour is understood by the public. One goal of risk research is to understand how people perceive and interpret risk to facilitate safe behaviour. This is seen as important for many different reasons, one being because policy measures might be more effective when they address and understand individual differences in beliefs and perceptions of a target group (Steg, L., Sievers, I., 2000. Cultural theory and individual perceptions of environmental risks. Environment and Behavior 32 (2), 250–269). The main aim of this study was to investigate what is most important in regard to safety priorities. Three personality assets – anxiety, excitement-seeking and trust – were first examined. Further factors were driver optimism, worrying about transport risks, willingness to pay to increase safety, and negative attitudes toward traffic rules (as a driver). The results are based upon two questionnaire surveys carried out among a representative sample of the Norwegian public in 2004. The results showed that worry was the most important predictor of safety priorities. In addition, negative attitudes towards rules were also found to have an impact on priority. The proposed model explained 44% of the variance of safety priority. This knowledge gives additional information to improve the success of interventions because it will develop the ability to target those who consider safety to be of low priority and guide them to modify their attitudes. This may in turn increase their value of safety.     

Merit pay raises and organization‐based self‐esteem

We developed and tested a theory of the relationship between merit pay raises and organization‐based self‐esteem (OBSE) in a longitudinal study of hospital employees. We predicted that the positive relationship between merit pay raise size and OBSE would be stronger when pay‐for‐performance (PFP) perceptions were high and predicted further that this interaction would be stronger among older employees. As predicted, merit pay raises were not related to OBSE levels for younger employees, but, among older employees, larger merit raises increased OBSE when PFP perceptions were high and decreased OBSE when PFP perceptions were low. Implications of the study for merit pay theory and practice are addressed. Copyright © 2008 John Wiley & Sons, Ltd.     

Perceptions of executive pay: does pay enhance a leader's aura?

This study used policy capturing to test the ‘figurehead’ assertion that executive pay level contributes to followers' perceptions of a leader's ability. Findings indicated human capital factors including promotion history, degree earned and university prestige all furnished more explanation than pay for CEO ratings. Results challenged the underlying logic of figurehead explanations for executive compensation to the rank and file. Copyright © 2001 John Wiley & Sons, Ltd.     

When the abuse is unevenly distributed: The effects of abusive supervision variability on work attitudes and behaviors

The present study examined the consequences of a dispersion‐based conceptualization of unit‐level abusive supervision or abusive supervision variability. Abusive supervision variability was proposed to negatively affect a number of employee attitudes and behaviors through the mediating effects of interpersonal justice climate strength. The results revealed significant cross‐level effects such that abusive supervision variability was negatively related to individual perceptions of leader ethicality, organizational ethicality, leader satisfaction, and affective organizational commitment. These effects remained robust after controlling for individual‐level abusive supervision. Abusive supervision variability was also positively related to the frequency with which unit members as a whole engaged in counterproductive work behaviors. Last, the results revealed partial support for the mediating effects of interpersonal justice climate strength. In sum, the findings highlight the importance of examining abusive supervision at both the individual and unit levels of analyses. Copyright © 2012 John Wiley & Sons, Ltd.     

Organizational behavior implications of the congruence between preferred polychronicity and experienced work‐unit polychronicity

This research hypothesizes that greater congruence between preferred polychronicity (the extent to which an individual prefers to be involved with several tasks simultaneously) and experienced work‐unit polychronicity (the polychronic behaviors and preferences of the supervisor and co‐workers) will be associated with higher levels of (1) three components of organizational commitment (willingness to exert effort, desire to remain a member of the organization, and belief in and acceptance of organizational goals), (2) the individual's perceived performance evaluation by the supervisor and co‐workers, and (3) the individual's perceived fairness of the performance evaluation. Based on a sample of employed business school graduates, the results indicate that polychronic congruence is significantly related to these variables in the predicted direction. The use of polynomial regression analysis reveals additional characteristics of the relationships that would not have been available from the analysis of squared‐difference scores. The findings support the position that polychronicity and other temporal variables are important factors in organizational research. Copyright © 1999 John Wiley & Sons, Ltd.     

The costs,benefits, and limitations of organizational level stress interventions

Models of organizational stress posit that a number of undesirable employee states and behaviors, such as lower levels of well‐being and performance, and higher levels of absence and turnover are caused by organizational stress. It is often suggested that organizational level interventions which aim to reduce stress, such as job redesign, will therefore reduce or eliminate these states and behaviors. This suggestion is, however, based on two unsupportable assertions. The first is that these states and behaviors are caused by organizational stress. While there is some limited evidence for the role of stress, the quality of this evidence is severely compromised by numerous methodological and conceptual problems. The second assertion is that organizational level interventions aimed at changing some of these states and behaviors will actually have an effect, and that these effects will be uniformly positive. However, the available evidence suggests that these interventions often have little or no effect, and where they do have effects, these may be both positive and negative., The implications of this analysis for future work on organizational level stress interventions are discussed. Copyright © 1999 John Wiley & Sons, Ltd.     

No person is an island: The effects of group characteristics on individual trait expression

Although most researchers now espouse a person‐by‐situation interactionist approach, there remains much work to be carried out to fully understand how different features of the environment interact with personality to influence behavior. Thus, this study sought to examine the moderating effects of three group‐level constructs on the relationships between two personality traits (conscientiousness and extraversion) and individual performance and counterproductive behaviors. Specifically, using trait activation theory as an organizing framework, we considered the moderating effects of the following: (i) a previously unexamined construct called core group evaluations (CGEs); (ii) group conscientiousness composition; and (iii) group extraversion composition. Data were obtained from a sample of university football players (N = 225–252 from 40 groups). The results indicated that CGEs moderated the relationships between individual conscientiousness and both performance (subjective) and counterproductive behaviors. Group conscientiousness composition also moderated the relationships between individual conscientiousness and both performance (objective and subjective) and counterproductive behaviors. Lastly, group extraversion composition moderated the relationship between individual extraversion and counterproductive behaviors. These findings highlight the importance of considering a team's CGEs, as well as the personality composition of team members when investigating the effects of conscientiousness and extraversion on individual performance and counterproductive behaviors. Copyright © 2011 John Wiley & Sons, Ltd.