The Influence of the Leader-Member Exchange Relationship on the Reward Allocation Decision: A Comparative Study of Taiwan and American

博士 === 國立臺灣大學 === 商學研究所 === 92 === According to the Leader-Member Exchange (LMX) theory, supervisors treat subordinates differently at varying degrees and levels contingent on whether the latter are considered “insiders” or “outsiders”. This study, which is based on the LMX theory, examined the eff...

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Bibliographic Details
Main Authors: Hsiu-Hua, Hu, 胡秀華
Other Authors: Kuo Long, Huang
Format: Others
Language:zh-TW
Published: 2004
Online Access:http://ndltd.ncl.edu.tw/handle/60937769120156474410
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Summary:博士 === 國立臺灣大學 === 商學研究所 === 92 === According to the Leader-Member Exchange (LMX) theory, supervisors treat subordinates differently at varying degrees and levels contingent on whether the latter are considered “insiders” or “outsiders”. This study, which is based on the LMX theory, examined the effects of the three key factors (affect, loyalty, and contribution) of exchange relationship between supervisors and subordinates on the reward allocation decision (including monetary rewards such as salary increases and bonus distribution, as well as non-monetary incentives such as job promotion, important task assignments, participation in decision-making, public recognition, etc.). The study also looked at the moderated effects of country (Taiwan and American), and the reward allocation situation (private and public) on the three factors and reward allocation decision, in an attempt to better understand the complex nature of managerial behavior when allocating rewards. The study used a 2×2×2 scenario experiment design to examine the effects of the three exchange relationship factors on the corporate manager’s reward allocation decision from a point of view of cross-country comparisons. A total of 224 Taiwanese and 152 American managers answered questionnaires regarding their reward allocation choices under a simulated situation involving eight employee types based on the three exchange relationship factors. They also completed the scales of independent and interdependent self-construals. A General Linear Model with repeated measures ANCOVA (Analysis of Covariance) was used to test the hypotheses; the control variables included the individual’s sex, age, tenure, educational level, etc. The main findings of the study were as follows: (1)The main effects of the three exchange relationship factors (affect, loyalty, and contribution) on the reward allocation decision were significant, meaning that supervisors allocate more monetary and non-monetary rewards to subordinates with a close affective relationship, high loyalty, or high contribution. (2)The interactive effects of the three exchange relationship factors on the reward allocation decision were also significant mostly, but the patterns of the interactive effects among the three variables were not same. Moreover, the three-way interactive effects of the three exchange relationship factors on the reward allocation decision were also significant for salary increases, bonus distribution, participation in decision-making and public recognition. (3)The interactive effects between the country variable and the three exchange relationship factors on the reward allocation decision were mostly significant. (4)The interactive effects between the reward situation variable and the three exchange relationship factors on the reward allocation decision were significant, meaning that their influence will differ according to the type of reward allocation situation (public or private). If allocated privately, supervisors show preferential treatments, suggesting that the three exchange relationship factors have a stronger influence on the decision. But if allocated publicly, their influence is weaker. (5)The interactive effects between the reward situation variable with the affect and contribution variables respectively on the monetary reward allocation decision were significantly different for Taiwanese and American managers. In another words, regardless of a private or public allocation situation, Taiwanese managers will allocate more monetary rewards to subordinates with a closer affective relationship to them than American managers do. Conversely, American managers will allocate more monetary rewards to higher contributing subordinates than Taiwanese managers do. The limitations of the research and the suggestions for further research were discussed.