Abstract
In a survey questionnaire, 81 Swedish managers working in the private and public sectors were presented with scenarios in which a manager chose among inefficient (i.e., economically worse) alternatives, implying equal rewards to subordinates; and efficient (i.e., economically better) alternatives, implying unequal rewards. The managers also rated 26 different emotion words, describing their responses to the inequality of rewards in the scenarios. The results showed stronger outward‐directed and inward‐directed negative emotions, and weaker inward‐directed positive emotions when the inequality of rewards increased. Furthermore, negative emotions were found to mediate the choices among efficient and inefficient alternatives.
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