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Reward allocation decisions of Chinese managers: Influence of employee categorization and allocation context
Authors:Hsiu-Hua Hu  Wei-Ling Hsu   Bor-Shiuan Cheng
Affiliation:Graduate Institute of Business Administration, National Taiwan University, Taipei, Taiwan; Department of Psychology, National Taiwan University, Taipei, Taiwan; Department of Psychology, National Taiwan University, Taipei, Taiwan; 
Abstract:The purpose of the present study was to investigate the relationships between employee categorization criteria and Chinese managers' allocation behaviors. Using a vignette approach and a four-factor within-subjects design, the effects of relationship (guanxi), loyalty, and competence, as well as their interactions with allocation context (private vs public) were examined. Results showed that subordinates who had a close relationship with the allocator, high loyalty, or high competence were rewarded more. Significant two-way interaction effects indicated that relationship, loyalty and competence interactively affected Chinese managers' reward allocation decisions. In addition, the moderating effects of allocation context on these three criteria were also significant. Limitations of the study and suggestions for further research were discussed.
Keywords:allocation context    competence    employee categorization    loyalty    relationship (guanxi)    reward allocation
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