Does whom you work with matter? Effects of referent group gender and age composition on managers' compensation

Much research has examined gender and age effects on compensation, concluding that a wage gap exists favoring men and negative stereotypes against older workers persist. Although the effect of an employee's gender or age has been widely studied, little work has examined the impact of the demographic characteristics of a focal employee's immediate referent groups (e.g., subordinates, peers, or supervisors) on pay. The effect of the gender and age composition of a focal manager's subordinates, peers, and supervisor on the manager's compensation levels was investigated in a sample of 2,178 managers across a wide range of organizations and functional areas. After controlling for a number of human capital variables, results indicated that not only does a wage gap favoring men exist, but also managerial pay is lower when managers' referent groups are largely female, when subordinates are outside the prime age group, and when peers and supervisors are younger.     

Why do Managers Engage in Trustworthy Behavior? A Multilevel Cross‐Cultural Study in 18 Countries

Drawing on theories of generalized exchange and the norm of indirect reciprocity, we conceptualize subordinates’ organizational citizenship behavior directed toward the organization (OCBO) and directed toward peers (OCBI) as antecedents of managerial trustworthy behavior and examine how managers’ affective trust in subordinates mediates this relationship. We also investigate the extent to which this mediation is moderated by the level of collectivism in a society. Data were collected from 741 managers and 2,111 subordinates in 18 countries representing all major cultural regions of the world. We find support for our hypothesized moderated mediation in that managers’ affective trust in subordinates mediates the relationships between both subordinates’ OCBO and managerial trustworthy behavior, and subordinates’ OCBI and managerial trustworthy behavior across the different countries studied. Further, managers’ affective trust in subordinates only mediates the relationships between both types of citizenship behavior and managerial trustworthy behavior when collectivism is low to medium but not when it is high. Implications for research on cross‐cultural psychology, trust, and organizational citizenship behavior are discussed.     

A COMPARISON OF RUSSIAN AND U.S. PAY ALLOCATION DECISIONS, DISTRIBUTIVE JUSTICE JUDGMENTS, AND PRODUCTIVITY UNDER DIFFERENT PAYMENT CONDITIONS

This article reports the results of two studies of pay-related attitudes and behaviors of Russian and U.S. managers and students. In a pay allocation role play, managers in both countries place primary emphasis on individual performance (equity) and secondary emphasis on coworker relations and equality. In addition, Russian managerial subjects utilized need in their pay allocations. In a series of experiments, both Russian and U.S. students preferred the equity rule, although there were no productivity effects across different allocation rules. Procedural justice effects were also observed. Implications for pay practices are examined.     

Sex Effects in Performance--Related Judgments

This study examined the relationships among objective performance, performance ratings, and pay allocations made by male and female managers. Because rater sex has been found to affect performance ratings and pay allocations, but little research has explored the causes of these sex differences, this study explored the effects of contextual factors that may moderate differences between the performance ratings and pay allocations of male and female raters. Two hundred twenty-nine managers assigned performance ratings and merit pay allocations to performance profiles that varied in levels of objective performance. It was found that: (a) sex effects on performance ratings were moderated by contextual variables, and b) sex and objective performance did not influence merit pay allocations independent of their separate effects on performance ratings.     

REMOTE CONTROL: PREDICTORS OF ELECTRONIC MONITORING INTENSITY AND SECRECY

Electronic monitoring research has focused predominantly on the reactions of monitored employees and less attention has been paid to the processes that trigger managers' decisions to electronically monitor subordinates. Employing a distributed virtual team simulation, this study examined the effects of dependence, future performance expectations, and propensity to trust on team leaders' decisions to electronically monitor their subordinates. Results indicate that team leaders electronically monitor subordinates more intensely when dependence on subordinates is high or future performance expectations are low. Moreover, team leaders are more likely to monitor in secret when dependence is high or propensity to trust is low. Although team leaders increased their level of electronic monitoring over time, this tendency was stronger when the leader had consistently low performance expectations.     

Employee Gender, Gender Similarity, and Supervisor-Subordinate Cross-Evaluations

This article examines the relationship between employee gender and gender similarity on the one hand and supervisor-subordinate cross-evaluations and subordinate rewards on the other, using a sample of 651 employees from five midwestern organizations. Data were obtained through structured interviews, supervisor ratings of subordinates, and employee personnel records. Two-way analysis of variance results indicated that (a) evaluations of women are more positive than evaluations of men and (b) opposite-sex evaluations tend to be higher than same-sex evaluations, but (c) men subordinates receive more promotions, and same-sex subordinates more pay increases, than do women subordinates and opposite-sex subordinates respectively.     

Survey Feedback as a Tool for Changing Managerial Culture: Focusing on Users' Interpretations - A Case Study

This article presents a case study in a savings bank in which a change of managerial culture is conducted over several years. A survey feedback was carried out where special attention was paid to subordinates' perceptions on managerial behaviours of the immediate manager. This intervention intended to stimulate and facilitate changes of managers' values, competences, and practices by means of providing them with relevant feedback from subordinates and by developing a team-centred process of climate analysis and change. However, perceptions and interpretations developed by managers and their subordinates about the actions undertaken emphasized political processes and power games, which caused emotional reactions such as fear, suspiciousness, and discomfort. In light of this situation, the aims, meaning, and process of the intervention, as understood and interpreted by the participants, were taken as the focus of a subsequent target of analysis and intervention. Information obtained on participants' views and the process of their deconstruction are presented. Some suggestions are made to improve professional practice, and research questions are raised that should be incorporated into the research agenda in the near future.     

Why good job performance may (not) be rewarded: Sex Factors and Career Development

An experiment tested the effects of three sex variables on managerial career evaluations. The variables were sex of evaluator, sex of manager (evaluatee), and predominate sex of manager's subordinates. Each subject evaluated four managers, one in each possible combination of the last two independent variables, in an “in basket” format. All four situations included comparable managerial performance data. Subjects evaluated each manager in terms of size of a deserved salary increase, probable performance if promoted, promotability, and probability of attaining 5-year tenure. There were no differences in evaluations between male and female evaluators. Manager's sex and predominate subordinate sex frequently interacted. The interactions were interpreted as a sex-matching bias which can inappropriately benefit managers of opposite sex subordinates and hinder careers of managers with subordinates of their own sex.     

Trust, Dependency, and Control in the Contemporary Organization

Trust is an essential element in productive and effective intraorganizational communication and interaction. The present study examined several consequences of trust in terms of influence strategies used and the frequency with which people interact with each other. The study also examined the extent to which the technology of work affects management's dependency on their employees. It was found that distrust of subordinates by managers (n = 275) was associated with the use of strong tactics of influence, little dependency on employees, and the use of personal-related characteristics to explain distrust. It was also found that distrust of managers by subordinates (n = 267) was associated with the use of strong methods of influence, less interaction, less attempts to influence, and the use of personal-related characteristics to explain lack of trust. These findings have clear implications for understanding the relation among worker trust, dependency, and social influence. The data suggest that both employees and employers could benefit from considering the importance of a trusting relationship in the workplace.     

HOW HIGH PERFORMANCE HUMAN RESOURCE PRACTICES AND WORKFORCE UNIONIZATION AFFECT MANAGERIAL PAY

Using data from a nationally representative sample of telecommunications establishments, this study finds that HR practices and workforce unionization influence managerial pay levels and the ratio of manager-to-worker pay. High performance HR practices, including investment in the skills of the workforce, in computer-based technologies and in performance-based worker pay practices, are all positively related to managerial pay; but the use of workforce teams, which shift some managerial responsibilities to workers, has the opposite association. High performance HR practices also are associated with lower manager-to-worker pay differentials. In addition, workforce unionization is positively associated with managerial pay levels, with worker base pay mediating the relationship between managers' pay and unionization.     

Consequences of Supervisor Knowledge Hiding in Organizations: A Multilevel Mediation Analysis

Drawing on the theoretical framework of social cognitive theory, our study explores the multilevel mediation model in which moral disengagement (level-1) mediates the direct relationships between knowledge hiding by supervisors from subordinates (KHSS: level-2) and supervisor directed organizational citizenship behavior (SOCB: level-1) and supervisor directed silence (SS: level-1). Drawing on multi-sourced, multi-timed, and multilevel data of 306 subordinates nested within 83 supervisors, multilevel structural equation modeling (ML-SEM) was used to test the proposed model. The results demonstrate that KHSS, first, fosters subordinates’ moral disengagement, which in turn reduces their SOCB and enhances their SS. Our findings offer several useful theoretical and managerial implications of the negative consequences of supervisor knowledge hiding in organizations. As one of the first studies to provide empirical evidence for the existence of supervisor knowledge hiding (i.e. KHSS), this research highlights the consequences of KHSS on subordinates’ moral disengagement, SOCB, and SS.     

The effects of subordinate sex,pay equity,and strength of demand on compensation decisions

A decision-making simulation concerning a hypothetical subordinate was used to investigate the effects of subordinate sex, pay equity, and strength of demand on compensation decisions in an organizational setting. Results indicated that subjects recommended higher raises for underpaid subordinates than for equitably paid subordinates. A triple interaction of all three variables was also found. When subordinates were equitably paid, sex and strength of demand had no effect on the compensation decision. However, when subordinates were underpaid, strong-demand females received the largest raise and females making no demand received the smallest. Underpaid males in both demand conditions received a raise less than that of the strong-demand female but greater than that of the nodemand female.     

LEADERSHIP BEHAVIOR AND EFFECTIVENESS OF BEAUTY SALON MANAGERS

A field study was conducted in a chain of beauty salons to determine how the leadership behavior of salon managers is related to managerial effectiveness. Leadership behavior was measured with a new questionnaire that was filled out anonymously by subordinates. Strong correlations were found between some of the leadership scales and salon profits, sales increase, performance ratings, subordinate satisfaction, and role ambiguity. The results were consistent with managerial role requirements derived from an analysis of the leadership situation.     

Gender‐typing of leadership: Evaluations of real and ideal managers

This research focuses on female underrepresentation in managerial positions. Specifically, two studies examine gender‐typing for managerial roles in Spain using ratings for real and ideal managers. In addition, we analyse the existence of same‐gender bias on evaluations of the behavior of actual leaders. In the first study, 195 Spanish workers evaluate the extent to which gender‐stereotypical traits are important for becoming a successful middle manager in three conditions (female managers, male managers, and managers in general). In the second study, we explore the degree to which the behavior of real Spanish managers is gender‐typed and the existence of same‐gender bias on leadership styles – transformational, transactional and avoidant/passive – and on leadership outcomes – effectiveness, extra effort and satisfaction – from the perspective of subordinates (N = 605). Overall, the results demonstrate that masculine characteristics were rated as more important than feminine characteristics for managerial positions, and they were more often assigned to male managers than to female managers. Unexpectedly, this manager‐male association is stronger among female participants than among male participants. Our findings also demonstrate that women subordinates evaluate their same‐sex supervisors more favorably in transformational leadership, effectiveness, and extra effort. The negative consequences derived from gender‐typing managerial positions are highlighted according to the role congruity theory of prejudice toward female leaders. The positive effects of in‐group female bias on behavior ratings are also noted. The mixed implications of these results for women's advancement to leadership positions are discussed.     

THE EFFECTS OF FEEDBACK ACCOUNTABILITY ON UPWARD APPRAISAL RATINGS

Do subordinates feel and respond differently to upward appraisal procedures depending on whether they are accountable or anonymous? Accountability requires subordinates to identify themselves on the upward appraisal questionnaires they complete. In an experimental field study, 38 managers and their subordinates from an insurance company were randomly assigned to use one of the appraisal procedures. As hypothesized, managers who received feedback from specific individuals in the accountability procedure viewed the upward appraisal process more positively than did managers in the anonymity procedure. However, subordinates felt more comfortable giving anonymous responses. As a result, subordinates who used the accountability procedure rated their managers significantly higher than the subordinates who responded anonymously. Therefore, the results of this study suggest that an upward appraisal procedure in which individuals are accountable for their responses may produce inflated ratings of managers' performance. Further research should compare the accountability and anonymous upward appraisal procedures to determine which procedure produces more accurate ratings.     

Developing Managerial Skills Through Coaching: Efficacy of a Cognitive-Behavioral Coaching Program

Managerial coaching is currently seen as an effective leadership practice facilitating learning process of the employees for performing better and being more effective in organizations. This article builds on recent research on the importance of the managerial coaching by empirically investigating the effects of a cognitive-behavioral coaching programme over mid-level managers. Due to the similarities between managerial coaching behaviors and transformational leadership behaviors, we have adopted the transformational leadership model as theoretical framework for evaluating management behaviors. The study used a pre-posttest approach to test the effects of the coaching program especially designed for 23 mid-level managers having as responsibility the supervision of production teams in a multinational organization. The major aims of the program consisted of: developing managerial coaching skills, assertive communication skills, motivation of subordinates. Overall, the analysis of results elicited an increase of scores in the leadership behavior dimensions measured by multifactor leadership questionnaire that are part of the managerial coaching skills. Besides, the effectiveness perceived as an indicator of performance was significantly higher upon completion of the coaching program. Findings suggest that coaching, as a professional development method, has great potential to contribute to the managerial behaviors that facilitate development at subordinate level, as they are captured by some transformational and transactional scales. Such knowledge can be informative for practitioners as well in developing effective managers and leaders and understanding and managing employee attitudes and behaviors in organizations.     

Influence of prior involvement on employees' ratings

Surveys show that the majority of firms provide merit pay to outstanding employees. Despite the widespread use of merit pay programs, there is no consensus as to their effectiveness. While some plans have been successful in motivating employees to achieve higher performance, others have caused employees' dissatisfaction and discouragement. One previously unexplored area in the implementation of merit pay systems is the effect of the decision-maker's prior involvement with the employee on the decision to grant merit. The purpose of this paper was to examine whether hiring an employee leads to larger merit allocations despite evidence that the standards for merit were not met. 101 accounting students participated to assess the influence of hiring on subsequent merit allocations. Analysis indicated that prior involvement does bias ensuing merit decisions.     

Supervisors' performance feedback to subordinates: The impact of subordinate performance valence and outcome dependence

The purpose of this study was to examine the effects of two variables on supervisors' performance feedback to subordinates: (1) the valence of the subordinate's performance, that is, whether the subordinate has performed well or poorly, and (2) the degree to which the supervisor's monetary outcomes are dependent on the subordinate's performance. It was hypothesized that supervisors would give subordinates feedback less often about instances of poor performance than about instances of good performance, but that when given, their feedback about poor performance would be more specific than their feedback about good performance. It was also hypothesized that supervisors would give feedback more often under conditions of high outcome dependence than under conditions of low outcome dependence. The results strongly supported the two performance valence hypotheses. The outcome dependence hypothesis was also supported, but only when the subordinate exhibited a pattern of gradually worsening performance. The implications of these findings are discussed, as are directions for future research.     

AN EXAMINATION OF THE EFFECTS OF AN UPWARD FEEDBACK PROGRAM OVER TIME

Despite the growing popularity of upward feedback programs, there has been very little research on the effects of upward feedback on changes in managerial performance over time. We examined the effects of implementing an upward feedback program in which subordinates' ratings were collected for 238 first-through fifth-level managers in a large corporation at two points in time about 6 months apart. Research questions drawn from goal-setting, control, and social cognition theories guided our investigation of the effects of (a) receiving feedback, (b) completing self-ratings, (c) managers' initial level of performance, and (d) subordinate's familiarity with the manager on changes over time in the level of ratings and reported opportunity to observe managerial behaviors. Ratings were provided on a 33-item behavioral observation scale that focused on areas such as the manager's commitment to quality, communications, support of subordinates (encouraging participation, coaching), and fairness. Based on subordinates' ratings, managers whose initial level of performance was moderate or low improved over the 6-month period, and this improvement could not be attributed solely to regression to the mean. Also, both managers and their subordinates became more likely over time to indicate that the managers had an opportunity to demonstrate behaviors measured by the upward feedback instrument.