Bread and roses: Justice and the distribution of financial and socioemotional rewards in organizations

Abstract

Two studies tested the hypothesis that organizational decision makers attempt to counterbalance contribution-based distributions of financial/material rewards (a “merit” system that creates monetary inequality) with need- and equality-based allocations of socioemotional rewards, in effect allocating “roses” in lieu of more “bread”. Experiment 1 had a two-factor design (Reward Type × Magnitude of Income Inequality); 67 subjects were given a managerial in-basket exercise in which they expressed their preferences for a variety of distributive justice rules for seven different types of rewards. Experiment 2 (N=39) had the same design, with a stronger manipulation of magnitude of inequality. Results of the two experiments were consistent with the counterbalancing hypothesis, irrespective of magnitude of income inequality; financially related rewards (e.g., profit sharing, office space, company cars) were distributed with more emphasis on contribution rules (i.e., performance, status), while more socioemotional rewards (e.g., help for an employee's spouse, friendliness) were allocated with more emphasis on equality among individuals, equality across groups, and personal need.