Cheating, culture and incentives: who deserves a bonus?

Abstract

PurposeThe purpose of this research is to examine the relationship of perceptions of organizational justice on the ranking of candidates for incentive bonuses and the impact of organizational culture on these perceptions.Design/methodology/approachA questionnaire was developed which asked respondents to rank a set of seven candidates for a sales bonus based on deservingness for the bonus. Descriptions of the candidates included information not only on whether they achieved a pre-established metric for the bonus, but on how they achieved (or failed to achieve) the metric. Hypotheses related compliance with norms of organizational justice, both by candidates and the organization, to candidate rank. The survey was administered to a sample of 204 employees of business organizations at all levels obtained through a survey research firm, as well as a sample of 52 employees of organizations in the Christian publishing industry. Nonparametric statistics were used to analyze the results. A comparison was made between the respondents sourced through the research firm, seen as representing the general population and those from the Christian-oriented group.FindingsHypotheses that respondents will seek to punish violators of justice norms, reward compliers and compensate victims of organizational unfairness were generally supported. More interesting were differences between the groups of respondents from the general population and the group representing Christian-based firms.Originality/valueThis article reveals the impact of organizational culture on the acceptance of incentive systems. The research employed a practitioner survey, rather than more common experimental approach.