Skip to main content Accessibility help

We use cookies to distinguish you from other users and to provide you with a better experience on our websites. Close this message to accept cookies or find out how to manage your cookie settings.

Close cookie message
×
Hostname: page-component-cd9895bd7-lnqnp Total loading time: 0 Render date: 2024-12-22T22:29:48.546Z Has data issue: false hasContentIssue false

10 - Compensation and employee misconduct: the inseparability of productive and counterproductive behavior in firms

Published online by Cambridge University Press:  05 July 2016

By
Ian Larkin  and
Lamar Pierce
Edited by
Donald Palmer ,
Kristin Smith-Crowe  and
Royston Greenwood
Ian Larkin
Affiliation:
University of California
Lamar Pierce
Affiliation:
Washington University
Donald Palmer
Affiliation:
University of California, Davis
Kristin Smith-Crowe
Affiliation:
University of Utah
Royston Greenwood
Affiliation:
University of Alberta
Get access

Summary

Incentive systems play a fundamental role in organizations. Financial compensation represents the largest single cost for the average company (Gerhart, Rynes, and Fulmer 2009), and compensation is intimately tied to firm strategy and performance (Larkin, Pierce, and Gino 2012; Nickerson and Zenger 2008). Well-designed compensation systems allow firms to direct employee effort toward productive activities that improve firm performance and survival. Just as importantly, compensation systems can play a key role in attracting and retaining the right types of employees based on heterogeneous ability, motivation levels, and social connections. Although financial and other extrinsic incentives built into compensation systems are powerful tools for improving productivity, they also carry substantial risks. Compensation systems can generate perverse economic incentives as well as psychological and social responses that motivate a wide class of counterproductive behaviors ranging from lack of cooperation to explicitly illegal misconduct.

This chapter focuses on illuminating the holistic implications of multiple classes of compensation systems for employee behavior. We focus on non-executive employees for several reasons. First, an extensive literature in finance, strategy, and management covers executive compensation. Second, the key issues in executive compensation, such as motivating the appropriate level of risk and minimizing high-level corporate fraud, are quite different from the tradeoffs managers face when motivating non-executive employees (Larkin et al. 2012). Finally, the pay of top executives typically accounts for only a few percentage points of total firm compensation costs (Whittlesey 2006).

Incentive systems are fundamentally about motivating employee behavior (Hall 2000). In this chapter, we focus on both productive behaviors and counterproductive misconduct that are motivated by compensation systems. Productive behaviors are defined as those that contribute to the performance and ultimate success of the firm (as measured by profitability for most for-profit firms, but that can include other metrics). Misconduct includes several types of behaviors that are counterproductive to the firm: actions that are explicitly illegal, actions that violate formal organizational rules, actions that may not violate rules but are against the spirit of the rules, and actions that are counter-normative. Fundamentally, employees engage in misconduct because they believe it will increase their utility or happiness; misconduct can generate higher extrinsic rewards, such as pay, promotion, or status, and can also increase psychological well-being.

Type
Chapter
Information
Organizational Wrongdoing
Key Perspectives and New Directions
 , pp. 270 - 304
Publisher: Cambridge University Press
Print publication year: 2016

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Ackman, D. 2002. “Pay madness at Enron,” Forbes.com. Available from www.forbes.com/2002/03/22/0322enronpay.html.
Akerlof, G. and Yellen, J. 1990. “The fair wage-effort hypothesis and unemployment,” Quarterly Journal of Economics 105(2): 255–283.CrossRefGoogle Scholar
Ambrose, M., Seabright, M., and Schminke, M. 2002. “Sabotage in the workplace: The role of organizational injustice,” Organizational Behavior and Human Decision Processes 89(1): 947–965.CrossRefGoogle Scholar
Andrade, E. and Ariely, D. 2009. “The enduring impact of transient emotions on decision making,” Organizational Behavior and Human Decision Processes 109(1): 1–8.Google Scholar
Ashforth, B. and Anand, V. 2003. “The normalization of corruption in organizations,” Research in Organizational Behavior 25: 1–52.Google Scholar
Baker, G. 1992. “Incentive contracts and performance measurement,” Journal of Political Economy 100(3): 598–614.Google Scholar
Baker, G. 2000. “The use of performance measures in incentive contracting,” American Economic Review 90(2): 415–420.CrossRefGoogle Scholar
Bandiera, O., Rasul, I., and Barankay, I. 2005. “Social preferences and the response to incentives: Evidence from personnel data,” with Rasul, I. and Barankay, I, Quarterly Journal of Economics 120(3): 917–962.Google Scholar
Baucus, M. and Baucus, D. 1997. “Paying the piper: An empirical examination of longer-term financial consequences of illegal corporate behavior,” Academy of Management Journal 40(1): 129–151.Google Scholar
Ben-David, I. 2011. “Financial constraints and inflated home prices during the real estate boom,” American Economic Journal: Applied Economics 3(3): 55–87.Google Scholar
Bennett, V., Pierce, L., Snyder, J., and Toffel, M. 2013. “Customer-driven misconduct: How competition corrupts business practices,” Management Science 59(8): 1725–1742.CrossRefGoogle Scholar
Berger, J. and Pope, D. 2011. “Can losing lead to winning?” Management Science 57(5): 817–827.Google Scholar
Bewley, T. F. 1998. “Why not cut pay?” European Economic Review 42(3–5): 459–490.Google Scholar
Blanes, I., Vidal, J., and Nossol, M. 2011. “Tournaments without prizes: Evidence from personnel records,” Management Science 57: 1721–1736.Google Scholar
Bose, A., Pal, D., and Sappington, D. E. 2010. “Equal pay for unequal work: Limiting sabotage in teams,” Journal of Economics and Management Strategy 19(1): 25–53.CrossRefGoogle Scholar
Bothner, M., Kang, J., and Stuart, T. 2007. “Competitive crowding and risk taking in a tournament: Evidence from NASCAR racing,” Administrative Science Quarterly 52(2): 208–247.CrossRefGoogle Scholar
Boudreau, K. J., Lacetera, N., and Lakhani, K. R. 2011. “Incentives and problem uncertainty in innovation contests: An empirical analysis,” Management Science 57(5): 843–863.CrossRefGoogle Scholar
Brown, G., Gardner, J., Oswald, A., and Qian, J. 2008. “Does wage rank affect employees’ well-being?,” Industrial Relations 47(3): 355–389.CrossRefGoogle Scholar
Brown, M., Treviño, L., and Harrison, D. 2005. “Ethical leadership: A social learning perspective for construct development and testing,” Organizational Behavior and Human Decision Processes 97(2): 117–134.CrossRefGoogle Scholar
Burks, S., Carpenter, J., Goette, L., and Rustichini, A. 2009. “Cognitive skills affect economic preferences, strategic behavior, and job attachment,” Proceedings of the National Academy of Sciences 106(19): 7745–7750.CrossRefGoogle Scholar
Card, D., Mas, A., Moretti, E., and Saez, E. 2012. “Inequality at work: The effect of peer salaries on job satisfaction,” American Economic Review 102(6): 2981–3003.CrossRefGoogle Scholar
Carpenter, J., Matthews, P., and Schirm, J. 2010. “Tournaments and office politics: Evidence from a real effort experiment,” American Economic Review 100(1): 504–517.CrossRefGoogle Scholar
Carrell, M. and Dittrich, J. 1978. “Equity theory: The recent literature, methodological considerations, and new directions,” The Academy of Management Review 3(2): 202–210.Google Scholar
Chan, T., Li, J., and Pierce, L. 2014a. “Compensation and peer effects in competing sales teams,” Management Science 60(8): 1965–1984.Google Scholar
Chan, T., Li, J., and Pierce, L. 2014b. “Learning from peers: Knowledge transfer and sales force productivity growth,” Marketing Science 33(4): 463–484.CrossRefGoogle Scholar
Charness, G., Masclet, D., and Villeval, M. 2013. “The dark side of competition for status,” Management Science 60(1): 38–55.Google Scholar
Chen, C. X. and Sandino, T. 2012. “Can wages buy honesty? The relationship between relative wages and employee theft,” Journal of Accounting Research 50(4): 967–1000.CrossRefGoogle Scholar
Conrads, J., Irlenbusch, B., Rilke, R., and Walkowitz, G. 2013. “Lying and team incentives,” Journal of Economic Psychology 34: 1–7.CrossRefGoogle Scholar
Cornelissen, T., Himmler, O., and Koenig, T. 2011. “Perceived unfairness in CEO compensation and work morale,” Economics Letters 110(1): 45–48.Google Scholar
Dartnell Corporation. 2009. Dartnell's 30th Sales Force Compensation Survey. Chicago: The Dartnell Corporation.
de la Rosa, L. 2011. “Overconfidence and moral hazard,” Games and Economic Behavior 73(2): 429–451.Google Scholar
Deci, E., Koestner, R., and Ryan, R. 1999. “A meta-analytic review of experiments examining the effects of extrinsic rewards on intrinsic motivation,” Psychological Bulletin 125: 627–668.Google Scholar
DeMatteo, J., Eby, L., and Sundstrom, E. 1998. “Team-based rewards: Current empirical evidence and directions for future research,” Research in Organizational Behavior 20: 141–183.Google Scholar
Drago, R. and Garvey, G. T. 1998. “Incentives for helping on the job: Theory and evidence,” Journal of Labor Economics 16(1): 1–25.Google Scholar
Eagly, A. H. and Carli, L. L. 2007. “Women and the labyrinth of leadership,” Harvard Business Review 85(9): 62.Google Scholar
Eichenwald, K. 2012. “Microsoft's lost decade,” Vanity Fair 54(August): 108.Google Scholar
Erat, S. and Gneezy, U. 2012. “White lies,” Management Science 58(4): 723–733.Google Scholar
Esteves-Sorenson, C., Pohl, V., and Freitas, E. 2013. “Efficiency wages and its mechanisms: Empirical evidence,” Working Paper, Yale University.
Falk, A., Fehr, E., and Zehnder, C. 2006. “Fairness perceptions and reservation wages: The behavioral effects of minimum wage laws,” Quarterly Journal of Economics 121(4): 1347–1381.Google Scholar
Fast, N. J. and Chen, S. 2009. “When the boss feels inadequate power, incompetence, and aggression,” Psychological Science 20(11): 1406–1413.Google Scholar
Fehr, E. and Gächter, S. 2000. “Fairness and retaliation: The economics of reciprocity,” Journal of Economic Perspectives 14(2): 159–181.Google Scholar
Fehr, E. and Gächter, S. 2002. “Altruistic punishment in humans,” Nature 415: 137–140.Google Scholar
Fehr, E., Hart, O., and Zehnder, C. 2011. “Contracts as reference points – Experimental evidence,” American Economic Review 101(2): 493–525.CrossRefGoogle Scholar
Fehr, E., Schmidt, K., and Klein, A. 2007. “Fairness and contract design,” Econometrica 75: 121–154.CrossRefGoogle Scholar
Fiske, S., Cuddy, A., Glick, P., and Xu, J. 2002. “A model of (often mixed) stereotype content: Competence and warmth respectively follow from status and competition,” Journal of Personality and Social Psychology 82(6): 878–902.CrossRefGoogle Scholar
Frank, D. H. and Obloj, T. 2014. “Firm-specific human capital, organizational incentives, and agency costs: Evidence from retail banking,” Strategic Management Journal 35(9): 1279–1301.Google Scholar
Frey, B. and Jegen, R. 2001. “Motivational crowding theory,” Journal of Economic Surveys 15(5): 589–611.Google Scholar
Garcia, S. M. and Tor, A. 2007. “Rankings, standards, and competition: Task vs. scale comparisons,” Organizational Behavior and Human Decision Processes 102: 95–108.Google Scholar
Garcia, S. M., Tor, A., and Gonzalez, R. D. 2006. “Ranks and rivals: A theory of competition,” Pers. Social Psychology Bulletin 32(7): 970–982.CrossRefGoogle Scholar
Gerhart, B., Rynes, S., and Fulmer, I. 2009. “Pay and performance: Individuals, groups, and executives,” Academy of Management Annals 3(1): 251–315.Google Scholar
Gill, D., Prowse, V., and Vlassopoulos, M. 2013. “Cheating in the workplace: An experimental study of the impact of bonuses and productivity,” Journal of Economic Behavior & Organization 96(C): 120–134.CrossRefGoogle Scholar
Gino, F., Ayal, S., and Ariely, D. 2009. “Contagion and differentiation in unethical behavior the effect of one bad apple on the barrel,” Psychological Science 20(3): 393–398.Google Scholar
Gino, F. and Bazerman, M. 2009. “When misconduct goes unnoticed: The acceptability of gradual erosion in others’ unethical behavior,” Journal of Experimental Social Psychology 45(4): 708–719.CrossRefGoogle Scholar
Gino, F. and Pierce, L. 2009a. “Dishonesty in the name of equity,” Psychological Science 20: 1153–1160.CrossRefGoogle Scholar
Gino, F. and Pierce, L. 2009b. “The abundance effect: Unethical behavior in the presence of wealth,” Organizational Behavior and Human Decision Processes 109(2): 142–155.CrossRefGoogle Scholar
Gino, F. and Pierce, L. 2010a. “Robin Hood under the hood: Wealth-based discrimination in illicit customer help,” Organ Science 21(6): 1176–1194.Google Scholar
Gino, F. and Pierce, L. 2010b. “Lying to level the playing field: Why people may dishonestly help or hurt others to create equity,” Journal of Business Ethics 95(1): 89–103.CrossRefGoogle Scholar
Gneezy, U. 2005. “Step-level reasoning and bidding in auctions,” Management Science 51(11): 1633–1642.Google Scholar
Gneezy, U., Rockenbach, B., and Serra-Garcia, M. 2013. “Measuring lying aversion,” Journal of Economic Behavior & Organization 93: 293–300.CrossRefGoogle Scholar
Gneezy, U. and Rustichini, A. 2004. “Gender and competition at a young age,” American Economic Review Papers & Proceedings 94(2): 377–381.CrossRefGoogle Scholar
Goel, A. and Thakor, A. 2008. “Overconfidence, CEO selection, and corporate governance,” The Journal of Finance 63(6): 2737–2784.CrossRefGoogle Scholar
Gould, E. and Kaplan, T. 2011. “Learning unethical practices from a co-worker: The peer effect of Jose Canseco,” Labour Economics 18(3): 338–348.Google Scholar
Green, G. A., Uryasz, F. D., Petr, T. A., and Bray, C. D. 2001. “NCAA study of substance use and abuse habits of college student-athletes,” Clinical Journal of Sport Medicine 11(1): 51–56.CrossRefGoogle Scholar
Greenberg, J. 1990. “Employee theft as a reaction to underpayment inequity: The hidden cost of pay cuts,” Journal of Applied Psychology 75: 561–568.Google Scholar
Greenberg, J. 1993. “Stealing in the name of justice: Informational and interpersonal moderators of theft reactions to underpayment inequity,” Organizational Behavior and Human Decision Processes 54(1): 81–103.CrossRefGoogle Scholar
Groysberg, B. 2012. Chasing Stars: The Myth of Talent and the Portability of Performance. Princeton: Princeton University Press.
Groysberg, B., Nanda, A., and Nohria, N. 2004. “The risky business of hiring stars,” Harvard Business Review 82(5): 92–101.Google Scholar
Gubler, T., Larkin, I., and Pierce, L. 2016. “Motivational spillovers from awards: Crowding out in a multitasking environment,” Organization Science. Forthcoming.
Gürtler, O. 2008. “On sabotage in collective tournaments,” Journal of Mathematical Economics 44(3): 383–393.Google Scholar
Hall, B. 2000. “Incentives and controllability: A note and exercise,” Harvard Business School Background Note 801–334.
Hamilton, B., Nickerson, J., and Owan, H. 2003. “Team incentives and worker heterogeneity: An empirical analysis of the impact of teams on productivity and participation,” Journal of Political Economy 111(3): 465–497.CrossRefGoogle Scholar
Hertel, G., Niedner, S., and Herrmann, S. 2003. “Motivation of software developers in open source projects: An Internet-based survey of contributors to the Linux kernel,” Research Policy 32: 1159–1177.Google Scholar
Hitt, M. A., Bierman, L., Shimizu, K., and Kochhar, R. 2001. “Direct and moderating effects of human capital on strategy and performance in professional service firms: A resource-based perspective,” Academy of Management Journal 44: 13–28.Google Scholar
Hoffman, M. and Morgan, J. 2015. “Who's naughty? Who's nice? Experiments on whether pro-social workers are selected out of cutthroat business environments,” Journal of Economic Behavior & Organization 109: 173–187.CrossRefGoogle Scholar
Holmstrom, B. 1982. “Moral hazard in teams,” The Bell Journal of Economics 13(2): 324–340.CrossRefGoogle Scholar
Holmstrom, B. and Milgrom, P. 1991. “Multitask principal-agent analyses: Incentive contracts, asset ownership, and job design,” Journal of Law, Economics, & Organization 7: 24–52.Google Scholar
Iranzo, S., Fabiano, S., and Tosetti, E. 2008. “Skill dispersion and firm productivity: An analysis with employer-employee matched data,” Journal of Labor Economics 26(2): 247–285.CrossRefGoogle Scholar
Itoh, H. 1991. “Incentives to help in multi-agent situations,” Econometrica: Journal of the Econometric Society 59(3): 611–636.CrossRefGoogle Scholar
Jensen, M. 2001. “Corporate budgeting is broken, let's fix it,” Harvard Business Review 79(10): 94–101.Google Scholar
John, L., Loewenstein, G., and Rick, S. 2014. “Cheating more for less: Upward social comparisons motivate the poorly compensated to cheat,” Organizational Behavior and Human Decision Processes 123(2): 101–109.Google Scholar
Jones, G. and Kavanagh, M. 1996. “An experimental examination of the effects of individual and situational factors on unethical behavioral intentions in the workplace,” Journal of Business Ethics 15(5): 511–523.Google Scholar
Kandel, E. and Lazear, E. 1992. “Peer pressure and partnerships,” Journal of Political Economy 100(4): 801–817.Google Scholar
Kern, M. and Chugh, D. 2009. “Bounded ethicality the perils of loss framing,” Psychological Science 20(3): 378–384.Google Scholar
Kerr, S. 1975. “On the folly of rewarding A, while hoping for B,” Academy of Management Journal 18(4): 769–783.Google Scholar
Kilduff, G., Elfenbein, H., and Staw, B. 2010. “The psychology of rivalry: A relationally dependent analysis of competition,” Academy of Management Journal 53: 943–969.CrossRefGoogle Scholar
Kouchaki, M. and Desai, S. 2015. “Anxious, threatened, and also unethical: How anxiety makes individuals feel threatened and commit unethical acts,” Journal of Applied Psychology 100(2): 360.CrossRefGoogle Scholar
Kwon, I. and Milgrom, E. 2007. “Status, relative pay, and wage growth: Evidence from M&A,” Discussion Papers 07–026, Stanford Institute for Economic Policy Research.
Lado, A. A. and Wilson, M. C. 1994. “Human resource systems and sustained competitive advantage: A competency-based perspective,” Academy of Management Review 19(4): 699–727.Google Scholar
Larkin, I. 2011. “Paying $30,000 for a gold star: An empirical investigation into the value of peer recognition to software salespeople,” Working paper, Harvard Business School.
Larkin, I. 2014. “The cost of high-powered incentives: Employee gaming in enterprise software sales,” Journal of Labor Economics 32(2): 199–227.CrossRefGoogle Scholar
Larkin, I. and Leider, S. 2012. “Incentive schemes, sorting and behavioral biases of employees: Experimental evidence,” American Economic Journal: Microeconomics 4(2): 184–214.CrossRefGoogle Scholar
Larkin, I., Pierce, L., and Gino, F. 2012. “The psychological costs of pay-for-performance: Implications for the strategic compensation of employees,” Strategic Management Journal 33: 1194–1214.CrossRefGoogle Scholar
Lazear, E. 1979. “Why is there mandatory retirement?,” The Journal of Political Economy 87(6): 1261–1284.CrossRefGoogle Scholar
Lazear, E. P. 1989. “Pay equality and industrial politics,” Journal of Political Economy 97(3): 561–580.CrossRefGoogle Scholar
Lazear, E. 2000. “Performance pay and productivity,” American Economic Review 90(5): 1346–1361.CrossRefGoogle Scholar
Lazear, E. and Oyer, P. 2012. “Personnel economics,” in Gibbons, Robert and Roberts, John (eds.), The Handbook of Organizational Economics. Princeton: Princeton University Press.
Lazear, E. and Rosen, S. 1981. “Rank-order tournaments as optimum labor contracts,” Journal of Political Economy 89(5): 841–864.CrossRefGoogle Scholar
Lemieux, T., MacLeod, W., and Parent, D. 2007. “Performance pay and wage inequality,” The Quarterly Journal of Economics 124(1):1–49.CrossRefGoogle Scholar
Liu, D., Li, X., and Santhanam, R. 2013. “Digital Games and Beyond: What Happens When Players Compete,” Mis Quarterly 37(1): 111–124.Google Scholar
Mas, A. and Moretti, E. 2009. “Peers at work,” American Economic Review 99: 112–145.Google Scholar
Mazar, N. and Ariely, D. 2006. “Dishonesty in everyday life and its policy implications,” Journal of Public Policy and Marketing 25(1): 117–126.CrossRefGoogle Scholar
McGraw, P., Mellers, B. A., and Tetlock, P. E. 2005. “Expectations and emotions of Olympic athletes,” Journal of Experimental Social Psychology 41(4): 438–446.CrossRefGoogle Scholar
Mian, A. and Sufi, A. 2009. The consequences of mortgage credit expansion: Evidence from the US mortgage default crisis. The Quarterly Journal of Economics 124(4): 1449–1496.CrossRefGoogle Scholar
Moore, C. and Gino, F. 2015. “Approach, ability, aftermath: A psychological process framework of unethical behavior at work,” The Academy of Management Annals 9(1): 235–289.Google Scholar
Nalebuff, B. and Stiglitz, J. 1983. “Prizes and incentives: Towards a general theory of compensation and competition,” The Bell Journal of Economics 14(1): 21–43.Google Scholar
Nickerson, J. and Zenger, T. 2008. “Envy, comparison costs, and the economic theory of the firm,” Strategic Management Journal 29: 1429–1449.Google Scholar
Niederle, M. and Vesterlund, L. 2007. “Do women shy away from competition? Do men compete too much?,” The Quarterly Journal of Economics 122(3): 1067–1101.CrossRefGoogle Scholar
Obloj, T. and Sengul, M. 2012. Incentive life-cycles learning and the division of value in firms. Administrative Science Quarterly 57(2): 305–347.Google Scholar
Ordóñez, L., Schweitzer, M., Galinsky, A., and Bazerman, M. 2009. “Goals gone wild: The systematic side effects of overprescribing goal setting,” The Academy of Management Perspectives 23(1): 6–16.Google Scholar
Oyer, P. 1998. “Fiscal year ends and nonlinear incentive contracts: The effect on business seasonality,” Quarterly Journal of Economics 113(1): 149–185.Google Scholar
Paarsch, H. J. and Shearer, B. 2000. “Piece rates, fixed wages, and incentive effects: Statistical evidence from payroll records,” International Economic Review 41(1): 59–62.CrossRefGoogle Scholar
Palmer, D. 2012. Normal Organizational Wrongdoing: A Critical Analysis of Theories of Misconduct in and by Organizations. Oxford: Oxford University Press.
Palmer, D. and Yenkey, C. B. 2015. “Drugs, sweat, and gears: An organizational analysis of performance-enhancing drug use in the 2010 Tour de France,” Social Forces 94(2): 891–922.Google Scholar
Pierce, L., Snow, D., and McAfee, A. 2015. “Cleaning house: The impact of information technology on employee corruption and productivity,” Management Science 61(10): 2299–2319.Google Scholar
Pierce, L. and Snyder, J. 2008. “Ethical spillovers in firms: Evidence from vehicle emissions testing,” Management Science 54(11): 1891–1903.Google Scholar
Pierce, L. and Snyder, J. 2015. “Unethical demand and employee turnover,” Journal of Business Ethics 131(4): 853–869.Google Scholar
Prendergast, C. 1999. “The provision of incentives in firms,” Journal of Economic Literature 37: 7–63.CrossRefGoogle Scholar
Rabin, M. 1993. “Incorporating fairness into game theory and economics,” The American Economic Review 83(5): 1281–1302.Google Scholar
Roy, D. 1952. “Quota restriction and goldbricking in a machine shop,” American Journal of Sociology 57: 427–442.CrossRefGoogle Scholar
Schwieren, C. and Weichselbaumer, D. 2010. “Does competition enhance performance or cheating? A laboratory experiment,” Journal of Economic Psychology 31(3): 241–253.Google Scholar
Smith-Crowe, K., Tenbrunsel, A. E., Chan-Serafin, S., Brief, A. P., Umphress, E. E., and Joseph, J. 2015. “The ethics ‘fix’: When formal systems make a difference,”Journal of Business Ethics 131(4): 791–801.CrossRefGoogle Scholar
Snyder, J. 2010. “Gaming the liver transplant market,” Journal of Law, Economics, & Organization 26(3): 546–568.Google Scholar
Staw, B. M. 1974. “Attitudinal and behavioral consequences of changing a major organizational reward: A natural field experiment,” Journal of Personality and Social Psychology 29(6): 742.CrossRefGoogle Scholar
Stowe, C. J. and Gilpatric, S. M. 2010. “Cheating and enforcement in asymmetric rank-order tournaments,” Southern Economic Journal 77(1): 1–14.CrossRefGoogle Scholar
Tang, T. L. P. and Chiu, R. K. 2003. “Income, money ethic, pay satisfaction, commitment, and unethical behavior: Is the love of money the root of evil for Hong Kong employees?,” Journal of Business Ethics 46(1): 13–30.Google Scholar
Tenbrunsel, A. E. and Smith-Crowe, K. 2008. “13 ethical decision making: Where we've been and where we're going,” The Academy of Management Annals 2(1): 545–607.Google Scholar
Van den Steen, E. 2005. “Organizational beliefs and managerial vision,” Journal of Law, Economics, and Organization 21(1): 256–283.Google Scholar
Vaughan-Whitehead, D. 2010. Fair Wages – Strengthening Corporate Social Responsibility. Cheltenham: Edward Elgar Publishing.
Vohs, K. D., Mead, N. L., and Goode, M. R. 2006. “The psychological consequences of money,” Science 314(5802): 1154–1156.Google Scholar
Whittemore, I. C. 1924. “The influence of competition on performance: An experimental study,” The Journal of Abnormal Psychology and Social Psychology 19(3): 236.CrossRefGoogle Scholar
Whittlesey, F. 2006. “The great overpaid CEO debate,” CNET News, June 1.
Wiltermuth, S. S. 2011. “Cheating more when the spoils are split,” Organizational Behavior and Human Decision Processes 115(2): 157–168.CrossRefGoogle Scholar
Wiltermuth, S. S., Bennett, V., and Pierce, L. 2013. “Doing as they would do: How the perceived ethical preferences of third-party beneficiaries impact ethical decision-making,” Organizational Behavior and Human Decision Processes 122: 280–290.Google Scholar
Yip, J. A. and Schweitzer, M. 2015. “Mad and misleading: Incidental anger promotes deception,” Available at SSRN 2478692.
Zenger, T. 1992. “Why do employers only reward extreme performance? Examining the relationships among performance, pay, and turnover,” Administrative Science Quarterly 37(2): 198–219.CrossRefGoogle Scholar
Zenger, T. 1994. “Explaining organizational diseconomies of scale in R&D: Agency problems and the allocation of engineering talent, ideas, and effort by firm size,” Management Science 40(6): 708–729.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×