The 23rd Annual Conference of the IACM
Most organizational behavior research in general, and negotiation research in particular,have paid little attention to the role of relative status between social exchange parties. In this paper, we note that while past research and theory on status tends to assume a competitive relationship between parties of different status and a fixed-sum pool of status resources, such assumptions do not apply to exchange between parties of different status in cooperative relationships. Accordingly, we hypothesized an interactive effect between status differential (unequal vs. equal) and relationship (cooperative vs. competitive). The negative impact of status differential on interactions and outcomes between exchange parties of different status would be reduced in cooperative relationships, but not so in competitive relationships. Theoretical implications to research in negotiation, status, and social exchange are discussed.
Taking a procedural justice perspective, we examined the effect of guanxi practices in human resources management (i.e., making human resources management decisions on the basis of personal relationships) on employees' trust in management in Chinese organizations. Two studies were conducted. In the first, a survey study, we found a negative effect of guanxi practices on trust in management, which was mediated by perceived procedural justice. In the second, an experimental study, we found that the negative effect of guanxi practices varied as a function of guanxi bases: favoring a nephew or a hometown fellow lowered trust, but favoring a college schoolmate or a close friend did not. Theoretical and practical implications are discussed.