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.