The Effects of In-Group Identity and Clarity of the Bonus Determination Criteria on Supervisors’ Discretionary Bonus Adjustments: Field Evidence from China

IF 0.9 Q3 BUSINESS, FINANCE
Joanna L. Y. Ho, Cody Lu, A. Wu
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引用次数: 0

Abstract

This study examines the influence of in-group identity between supervisors and subordinates and the clarity of the bonus determination criteria on supervisors’ discretionary adjustments of subordinates’ bonus compensation through the lens of social identity theory. Using field data from a multinational manufacturing company’s subsidiary in China, we find that in-group sales agents receive higher bonus awards and that this effect is more pronounced when there is high clarity of the bonus determination criteria. Additional analysis shows that these effects hold for higher-tenured sales agents and in regions characterized by lower sales agent turnover. Finally, we find that higher bonus awards are positively (negatively) associated with in-group sales agents’ future performance when there is low (high) clarity of the bonus determination criteria. Our findings hold potential implications for management practices in corporations operating in countries that have strong relationship-based cultures. Data Availability: Data used in this study are provided by a proprietary source.
集团内同一性和奖金确定标准的明确性对监事任意调整奖金的影响——来自中国的实证研究
本研究以社会认同理论为视角,考察了上司与下属之间的群体内认同以及奖金确定标准的明确性对上司自由裁量调整下属奖金补偿的影响。利用一家跨国制造公司在中国的子公司的现场数据,我们发现,集团内销售代理获得的奖金更高,当奖金确定标准高度明确时,这种影响更为明显。额外的分析表明,这些影响适用于任期较长的销售代理和销售代理营业额较低的地区。最后,我们发现,当奖金确定标准的清晰度较低(较高)时,较高的奖金与集团内销售代理的未来业绩呈正(负)相关。我们的研究结果对在具有强大的关系文化的国家运营的公司的管理实践具有潜在的启示。数据可用性:本研究中使用的数据由专有来源提供。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
1.40
自引率
16.70%
发文量
19
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