Reciprocity and Profit Sharing: Is There an Inverse U-shaped Relationship?

Cornelißen, Thomas; Heywood, John S.; Jirjahn, Uwe

doi:10.1007/s12122-014-9179-3

Cited by 8 publications

(8 citation statements)

References 57 publications

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“…Supervisor Accordingly, organizations hire supervisors to fulfill the profitability motives of the organization (Grojean, Resick, Dickson, & Smith, 2004). Supervisors are specifically responsible for motivating employees to obtain performance outcomes that support the organization's economic vitality ( Bayo-Moriones & Larraza-Kintana, 2009;Cornelissen, Heywood, & Jirjahn, 2014). In this respect, a supervisor's BLM may serve as a strategy for fulfilling the organization's profitability motives.…”

Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Whatever It Takes: How and When Supervisor Bottom-Line Mentality Motivates Employee Contributions in the Workplace

Babalola

Mawritz

Greenbaum

et al. 2020

Journal of Management

107

194

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Given that many organizations are competitive and finance centered, organizational leaders may lead with a primary focus on bottom-line attainment, such that they are perceived by their subordinates as having a bottom-line mentality (BLM) that entails pursuing bottom-line outcomes above all else. Yet, the field is limited in understanding why such a leadership approach affects employees’ positive and negative contributions in the workplace. Drawing on social exchange theory, we theorize that supervisors high in BLM can influence employees’ felt obligation toward the bottom line, which in turn can influence employees’ task performance and unethical pro-organizational behavior (UPB). We also examine employee ambition as a moderator of this process. Using three-wave, multisource data collected from the financial services industry, our results revealed that high-BLM supervisors elevate employee task performance as well as UPB by motivating employees’ felt obligation toward the bottom line. Furthermore, we found that employee ambition served as a first-stage moderator, such that the mediated relationships were stronger when employee ambition was high as opposed to low. Our findings break away from the dominant dysfunctional view of BLM and provide a more balanced view of this mentality.

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Section: Theoretical Background and Hypothesesmentioning

confidence: 99%

Whatever It Takes: How and When Supervisor Bottom-Line Mentality Motivates Employee Contributions in the Workplace

Babalola

Mawritz

Greenbaum

et al. 2020

Journal of Management

107

194

View full text Add to dashboard Cite

show abstract

“…Studies involving collective PFP typically approach the topic from one of two perspectives. Studies of sorting effects focus on collective PFP preferences and entry (e.g., Bozionelos & Wang, 2007; Cornelissen, Heywood, & Jirjahn, 2014; DeMatteo & Eby, 1997) or the attractiveness of collective PFP (Geng, Yoshikawa, & Colpan, 2016; Kruse, 1996). Studies of incentive effects consider how collective PFP can lead to unit-level outcomes (e.g., Blasi et al, 1996; Johnson et al, 2006).…”

Section: Typology and Integrative Lessons Learnedmentioning

confidence: 99%

Collective Pay for Performance: A Cross-Disciplinary Review and Meta-Analysis

Nyberg

Maltarich

Abdulsalam

et al. 2018

Journal of Management

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Rewarding collective outcomes has become an increasingly important strategic motivational tool for driving collective success, reflecting the insight that paying employees for individual contributions does not always optimize performance in collective endeavors. Research into different types of collective pay for performance (PFP), or pay that is contingent on collective outcomes, has been studied in diverse academic fields (e.g., economics, strategy, psychology), but the compartmentalization between these academic disciplines hinders conceptual coordination. To advance this research and its related insights, this article provides a review of the theory and evidence pertaining to the relationships between different collective PFP types and collective outcomes. We also provide a meta-analysis that shows that collective PFP has desirable outcomes (e.g., meta-analysis shows an overall ρ = 0.11; p < .001), substantiating the value of studying collective PFP separately from individual PFP. The review also reveals a lack of empirical and theoretical development and highlights the need for a comprehensive theory of collective PFP. Our cross-disciplinary review of 106 empirical articles builds a foundation for advancing common pursuits, integrating knowledge, and creating theory. The consolidated perspectives point to promising directions for future research.

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“…This solution requires that the employer hires the right types of workers (Cornelissen et al . ). There appear to be two types of workers who may not have the appropriate personality traits to overcome the disincentives associated with profit‐sharing.…”

Section: Alternative Methods Of Performance Measurementmentioning

confidence: 97%

Performance Pay and Applicant Screening

Jirjahn

Mohrenweiser

2018

Brit J Industrial Rel

Self Cite

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Using German establishment data, we show that the relationship between intensity of individual-based performance pay and intensity of applicant screening depends on the nature of production. In establishments with increased multitasking, performance pay is positively associated with applicant screening. By contrast, in establishments without increased multitasking, performance pay is negatively associated with applicant screening. We do not find a similar pattern of results for group-based performance pay or profit-sharing. Our findings fit the hypothesis that individual-based performance pay induces a positive self-sorting of employees if jobs are less multifaceted. In this case, employers with a high intensity of performance pay do not need intensive applicant screening to ensure a high quality of matches between workers and jobs. However, if jobs are more multifaceted, individual-based performance pay can entail problems of adverse self-sorting. In order to mitigate or overcome these problems, employers making intensive use of performance pay also screen applicants more intensively.

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Reciprocity and Profit Sharing: Is There an Inverse U-shaped Relationship?

Cited by 8 publications

References 57 publications

Whatever It Takes: How and When Supervisor Bottom-Line Mentality Motivates Employee Contributions in the Workplace

Whatever It Takes: How and When Supervisor Bottom-Line Mentality Motivates Employee Contributions in the Workplace

Collective Pay for Performance: A Cross-Disciplinary Review and Meta-Analysis

Performance Pay and Applicant Screening

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