I-deal makers in workgroups: Multi-level effects of leader fairness and i-deal distribution

Abstract

In this study we develop and test a model to extend theory on idiosyncratic deals (“i-deals”), individually negotiated work arrangements, to the context of work groups. We assert that there are three key stakeholders to any i-deal made in workgroup settings: the i-deal making individual, the workgroup leader and coworkers. Drawing on fairness heuristic theory, we hypothesize that employees are more likely to obtain i-deals when workgroup leaders are viewed to be procedurally fair. Further, individual perceptions of leader fairness exist within the context of coworkers’ perceptions of leader fairness, such that congruence or incongruence between the two matters to the making of an individual’s i-deals. Finally, to explore how i-deals can benefit all three stakeholders through enhanced group effectiveness, we hypothesize a positive association of both broad access to and high overall extent of i-deals in the workgroup with workgroup performance. Employing polynomial regression and hierarchical regression analysis on data from 258 Indian IT employees nested in 69 workgroups, we find that congruence between individual and coworkers’ perceptions of leader fairness is positively related to individual i-deals. However, incongruence between individual and coworkers’ leader fairness judgments has an asymmetric effect on individual i-deals, such that individual beliefs matter more than the coworkers’ beliefs. Further, the within-group extent of i-deals and degree of group member access to them are each positively related to group performance.