THE EFFECT OF INDIVIDUALISM-COLLECTIVISM ORIENTATIONS AND PERCEPTIONS OF REWARD FAIRNESS ON EMPLOYEE ATTITUDES AND BEHAVIORAL INTENTIONS
Ramamoorthy, N., Marymount University, USA, Flood, P. and Turner, T., University of Limerick, Ireland
Using a survey methodology we examined whether individualism/collectivism orientation and perceptions of fairness of rewards had main effects on three employee attitudes: organizational commitment, obligations towards teamwork, & effort and two behavioral intentions: intent to stay with the company and propensity to pursue career outside the organization. Four hundred and two employees from eleven high technology and financial services companies in Ireland participated in this study. We hypothesized that a higher level of individualism orientation will result in lower organizational commitment, lower obligations towards teamwork, a lower intention to expend effort and higher propensity to seek outside careers and a lower intention to stay with the company (tenure intent). We also hypothesized that higher the perceived fairness of rewards, higher will be the organizational commitment, willingness to expend effort, higher obligations towards teamwork, higher intention to stay and a lower intention to seek careers outside the organization. As hypothesized, a higher level of individualism orientation was associated with lower levels of commitment, intent to stay, and obligations towards teamwork. As expected, a higher level of individualism was also associated with a greater propensity to seek careers outside of the organization. However, contrary to the hypothesized effect, a higher level of individualism orientation was positively related to the willingness to expend effort. As hypothesized, a higher level of perceptions of reward fairness was positively associated with a higher level of organizational commitment and intent to stay with the company. However, perceived fairness of rewards had no effect on other employee attitudes included in this study. Implications for research and practice are discussed.