INFLUENCES ON MANAGERIAL PAY ALLOCATIONS: A DEPENDENCY PERSPECTIVE

This paper reviews evidence and presents arguments for the view that managerial pay allocations are influenced by the degree of dependence on subordinates and by threats to that dependence. In assessing this view, the issues of managerial discretion in pay allocation and pay as a means of managing dependencies are explored. Major sources of objective and subjective dependence on subordinates are identified. Predictions are made regarding managerial pay allocations under various conditions of dependence and dependency threat. Finally, research and practical implications of the dependency perspective are discussed.

[1]  W. Ouchi.  The Relationship Between Organizational Structure and Organizational Control. , 1977 .

[2]  I. Lane,et al.  Distribution of Insufficient, Sufficient, and Oversufficient Rewards: A Clarification of Equity Theory. , 1972 .

[3]  Herbert G. Heneman,et al.  MANAGERIAL SALARY‐RAISE DECISIONS: A POLICY‐ CAPTURING APPROACH , 1987 .

[4]  H. Reis,et al.  On Mediating Equity, Equality, and Self-Interest: The Role of Self-Presentation in Social Exchange. , 1976 .

[5]  H. P. Sims,et al.  Behind the Mask: The Politics of Employee Appraisal , 1987 .

[6]  R. Emerson.  Power-Dependence Relations , 1962, Power in Modern Societies.

[7]  Richard Blackburn.  Lower Participant Power: Toward a Conceptual Integration , 1981 .

[8]  J. Greenberg,et al.  Equity and the use of overreward to motivate performance. , 1976 .

[9]  Levesque Jd.  Selecting and managing competent managers. , 1985 .

[10]  E. Cohn,et al.  Secret ambitions and public performances: The effects of anonymity on reward allocations made by men and women , 1977 .

[11]  Jeffrey Pfeffer,et al.  Understanding Organizational Wage Structures: A Resource Dependence Approach , 1987 .

[12]  Samuel B. Landau,et al.  A Simulation Study of Administrators' Behavior Toward Employees Who Receive Job Offers1 , 1976 .

[13]  L. Dyer,et al.  MANAGERIAL PERCEPTIONS REGARDING SALARY INCREASE CRITERIA , 1976 .

[14]  P. M. Podsakoff,et al.  Effects of Withdrawal of a Performance-Contingent Reward on Supervisory Influence and Power , 1981 .

[15]  E. Donnerstein,et al.  White rewarding behavior as a function of the potential for block retaliation. , 1972, Journal of personality and social psychology.

[16]  D. Mcclelland,et al.  Leadership motive pattern and long-term success in management. , 1982 .

[17]  Robert E. Kaplan,et al.  Trade routes: The manager's network of relationships , 1984 .

[18]  David C. Martin.  Factors Influencing Pay Decisions: Balancing Managerial Vulnerabilities , 1987 .

[19]  K. Cook,et al.  Justice and Power , 1986 .

[20]  David B. Greenberger,et al.  Development and Application of a Model of Personal Control in Organizations , 1986 .

[21]  J. H. Davis,et al.  Individual and group reward allocation decisions in two situational contexts: Effects of relative need and performance. , 1985 .

[22]  Dean Tjosvold,et al.  Power and social context in superior-subordinate interaction , 1985 .

[23]  G. Leventhal.  What Should Be Done with Equity Theory , 1980 .

[24]  John E. Dittrich,et al.  Equity Theory: The Recent Literature, Methodological Considerations, and New Directions , 1978 .

[25]  J. S. Adams,et al.  Inequity In Social Exchange , 1965 .

[26]  E. Lawler.  Managers' attitudes towrd how their pay is and should be determined. , 1966, The Journal of applied psychology.

[27]  J. Kotter,et al.  Power, success, and organizational effectiveness. , 1978, Organizational dynamics.

[28]  R. A. Cosier,et al.  Equity Theory and Time: A Reformulation , 1983 .

[29]  S. Freedman,et al.  Some determinants of compensation decisions. , 1978, Academy of Management journal. Academy of Management.

[30]  G. Hamilton,et al.  The power of obedience. , 1984 .

[31]  J. Fossum,et al.  The Effects of Individual and Contextual Attributes on the Sizes of Recommended Salary Increases. , 1985 .

[32]  J. Pfeffer,et al.  Who gets power — and how they hold on to it: A strategic-contingency model of power , 1977 .

[33]  William B. Stevenson,et al.  Managerial Compensation Based on Organizational Performance: A Time Series Analysis of the Effects of Merit Pay , 1985 .

[34]  David Mechanic,et al.  Sources of Power of Lower Participants in Complex Organizations , 1962 .

[35]  G. Leventhal,et al.  The Distribution of Rewards and Resources in Groups and Organizations , 1976 .

[36]  Steven Kerr,et al.  Moderator Variables in Leadership Research , 1986 .

[37]  Eugene Szwajkowski,et al.  Organizational Illegality: Theoretical Integration and Illustrative Application , 1985 .

[38]  K. M. Bartol,et al.  Training the Raters: A Key to Effective Performance Appraisal , 1986 .

[39]  Daniel J. Brass.  Being in the right place: A structural analysis of individual influence in an organization. , 1984 .

[40]  Sara M. Freedman,et al.  An Integrative Model of Managerial Reward Allocation , 1980 .

[41]  Pamela S. Tolbert.  Institutional Environments and Resource Dependence: Sources of Administrative Structure in Institutions of Higher Education. , 1985 .

[42]  Edwin A. Locke,et al.  Complex decision making: A longitudinal study of process and performance , 1985 .

[43]  J. Brehm,et al.  Responses to Uncontrollable Outcomes: An Integration of Reactance Theory and the Learned Helplessness Model1 , 1975 .