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Chinese Journal of Management Science ›› 2024, Vol. 32 ›› Issue (12): 49-59.doi: 10.16381/j.cnki.issn1003-207x.202.1845

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The Way of Bridging Salary Disparity and Cooperative Tendency: Through Employee Fairness Perception and Team Competition Atmosphere

Baohuan Zhou1, Xiaoli Hu2(), Pingfan Wang1, Guangwei Deng3, liang Liang1,3   

  1. 1.School of Management,University of Science and Technology of China,Hefei 230026,China
    2.School of Public Affairs,University of Science and Technology of China,Hefei 230026,China
    3.School of Management,Hefei University of Technology,Hefei 230009,China
  • Received:2023-11-03 Revised:2024-01-13 Online:2024-12-25 Published:2025-01-02
  • Contact: Xiaoli Hu E-mail:huxl94@mail.ustc.edu.cn

Abstract:

Achieving common prosperity is a crucial goal in China's development. However, income inequality within organizations, particularly salary disparities within teams, can negatively impact employee cooperation and overall organizational performance. Driven by the pursuit of common prosperity and concerns regarding income inequality, the impact of team salary disparities on employee cooperative behavior tendency is studied. Grounded in behavioral theory and equity theory, the differential effects of explainable salary disparity (DEP) are investigated, arising from factors like skills and effort, and unexplainable salary disparity (DUP), stemming from potential biases or unfairness, on cooperation within teams. A multi-level linear model analysis is employed with data collected from 29 teams across various companies in eastern China. Team-level DEP and DUP are calculated using the Gini coefficient, while individual-level data on employee fairness perception and cooperative behavior are gathered through surveys. The findings reveal that DEP positively influences employee cooperative behavior, while DUP has a negative effect. This relationship is mediated by employee fairness perception, suggesting that employees are more inclined to cooperate when they perceive salary distribution as fair. Additionally, team competitive atmosphere moderates the relationship between salary disparities and fairness perception. In a highly competitive environment, the positive effect of DEP and the negative effect of DUP on fairness perception and subsequent cooperation are amplified. These results highlight the critical role of fair and transparent compensation systems in fostering cooperation within teams. Managers should strive to minimize DUP and ensure that any DEP is based on objective criteria. It contributes valuable insights for organizations seeking to optimize team performance by promoting fairness and cooperation among team members in this study.

Key words: team salary disparity, employee fairness perception, employee cooperative behavior tendency, team competition atmosphere

CLC Number: