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Using profit sharing to enhance employee attitudes: A longitudinal examination of the effects on trust and commitment
Author(s) -
CoyleShapiro Jacqueline AM.,
Morrow Paula C.,
Richardson Ray,
Dunn Stephen R.
Publication year - 2002
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.10052
Subject(s) - organizational commitment , profit sharing , expectancy theory , business , organizational justice , reciprocity (cultural anthropology) , profit (economics) , norm of reciprocity , psychology , public relations , social psychology , microeconomics , economics , sociology , political science , social capital , social science , finance
The ability of profit sharing to increase organizational performance via positive changes in employee attitudeshas yielded mixed results. Drawing on principal agent, expectancy, and organizational justice theories, we assesshow perceptions of profit sharing (capacity for individual contribution and organizational reciprocity)alter organizational commitment and trust in management using longitudinal data provided by 141 engineeringemployees. Favorable perceptions of profit sharing served to increase organizational commitment while onlyorganizational reciprocity predicted trust in management. The relationship between organizational reciprocity andcommitment was partially mediated by trust in management. Implications for the design of profit sharinginitiatives are noted. © 2002 Wiley Periodicals, Inc.