Reward Allocation Preferences in Groups and Organizations

Abstract

This review article focuses on the factors that affect the selection and implementation of three principles of distributive justice (i.e., equity, equality, and need) to reward systems in group and organizational settings. After presenting an overview of the assumptions, goals, and possible consequences associated with each of the three perspectives, the article then describes the moderating factors influencing distribution rule preferences across four levels of analysis: (1) the interorganizational, (2) the intraorganizational, (3) the work group, and (4) the individual. Some of the variables discussed include cross‐cultural differences, reward system implementation, task interdependency, work group climate, and individual characteristics. This material is then summarized through the use of a new conceptual model for describing allocation rule preferences. The article concludes with suggestions for future research.

Team reward attitude: construct development and initial validation

“…TRA is anchored at one end by a positive evaluation of rewards distributed based on an equality principle and on the other by rewards distributed based on equity (Chen and Church, 1993). High TRA individuals positively evaluate equally distributed rewards in teams; low TRA individuals positively evaluate equity-based rewards in teams.…”

“…Between these two poles are individuals whose attitudes are`more evenly matched' such that the attitude is a compromise between different ways of distributing rewards (Leventhal et al, 1980: 176). Chen and Church (1993), noting a scarce literature base, argued that reward attitudes should`be given the same weight and attention as more rational and observable variables when exploring the effective application of various forms of distributive systems and principles ' (p. 43).…”

Distributive justice beliefs and group idea generation: Does a belief in equity facilitate productivity?

“…In research on distributive justice it has been theorized that equity should facilitate productivity by highlighting disparities among individuals' levels of performance and thereby motivating group members to compete for a larger share of the reward (Deutsch, 1985;Chen & Church, 1993). Indeed, there is strong evidence that competition does facilitate productivity, particularly in brainstorming tasks, in which the goal is to generate as many ideas as possible (Osborn, 1957;Simonton, 1999).…”

What human resource practitioners need to know for the Twenty-First Century

“…See, for example, Chen and Church (1993), Deutsch (1985), and Kanfer (1990). Supervisors and HR practitioners would be wise to emphasize effort in their recognition processes.…”