Why grant I-deals? The role of supervisors’ Prior I-Deals, Exchange Ideology, and Justice Sensitivity

2021. Journal of Business and Psychology. https://doi.org/10.1007/s10869-019-09670-7 . Vol. 36 Nº1. Pp. 17-31.

Laulié, L., & Tekleab, A. G., & Lee, J.

Abstract:

Supervisors often have knowledge of their subordinates’ characteristics, needs, and performance and thus play an important role in the authorization and implementation of idiosyncratic deals (I-deals). By adopting a supervisor-based perspective of I-deals and using the logic of appropriateness in decision-making as the theoretical framework, the study examines managers’ motives for authorizing I-deals. Specifically, we argue that supervisors are more likely to grant I-deals when they have received I-deals themselves in the past and that this relationship is moderated by supervisors’ exchange ideology. We also propose that supervisors will be less likely to authorize I-deals when they have low or high levels (compared to moderate levels) of justice sensitivity. Results from 182 supervisor-subordinate dyads from various organizations suggest a positive and linear relationship between supervisors’ I-deals and subordinates’ I-deals and a moderation effect of exchange ideology. Furthermore, results show an inverted U-shaped relationship between supervisors’ justice sensitivity and subordinates’ I-deals. This research expands our understanding of factors affecting supervisors’ decision making on I-deals authorization.

Palabras claves: Idiosyncratic deals, Social exchange theory, Decision making, Logic of appropriateness, Exchange ideology, Justice sensitivity

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