Consequences of Unfair Job Promotions in Companies

D 2020

Consequences of Unfair Job Promotions in Companies

BAISA, Barbora

Basic information

Original name

Consequences of Unfair Job Promotions in Companies

Authors

BAISA, Barbora (203 Czech Republic, guarantor, belonging to the institution)

Edition

Rijeka, 2nd Scientific Conference on Economics of Digital Transformation - Smart Governments, Regions and Cities, p. 19-30, 12 pp. 2020

Publisher

University of Rijeka: Faculty of Economics and Business

Other information

Language

English

Type of outcome

Stať ve sborníku

Field of Study

50204 Business and management

Country of publisher

Croatia

Confidentiality degree

není předmětem státního či obchodního tajemství

Publication form

printed version "print"

References:

URL

RIV identification code

RIV/00216224:14560/20:00115221

Organization unit

Faculty of Economics and Administration

ISBN

978-953-7813-56-7

UT WoS

000589579700001

Keywords in English

Job promotion; reciprocity; experiment; gift exchange; fairness

Abstract

V originále

Companies, particularly large organizations with several hierarchical levels, often need to fill a vacant managerial position to maintain efficient operations. When the decision is to use internal resources rather than hire a candidate from the outside, companies usually fill the position by promoting a lower-ranking employee. The promotion to the managerial level comes with an increase in salary, a change in professional duties, and a shift in the career path and in the company hierarchy. Since all of these are usually perceived as desirable, a promotion can cause strong emotional reactions both from the employee who was promoted and from employees who were not. If the promotion of an employee to a managerial position is perceived by the non-promoted employees as undeserved or unfair, the non-promoted ones might become demotivated and might decrease their productive effort. A decrease in productive efforts and other unethical behaviors are often difficult to measure in the workplace. Experimental economics provides a suitable tool for studying (i) the behavior of individuals under controlled conditions when promotions perceived as unfair happen in companies; (ii) the reactions of promoted and non-promoted individuals; and (iii) the changes in productivity. The analysis of the information gathered via conducted laboratory experiment shows that when remuneration of employees is perceived as unfair their productivity decreases. Moreover, experimental design studying the reaction of promoted versus non-promoted employees was proposed to be able to deepen the knowledge of unfair job promotions in companies.

Links

MUNI/A/0941/2019, interní kód MU

Name: Ekonomické rozhodování v experimentálním prostředí s důrazem na genderové rozdíly

Investor: Masaryk University, Category A

MUNI/A/1088/2018, interní kód MU

Name: Individuální rozhodování a rozhodování v rámci skupin v experimentálním prostředí s důrazem na genderové rozdíly (Acronym: GENDIR)

Investor: Masaryk University, Category A

Citovat

BAISA, Barbora. Consequences of Unfair Job Promotions in Companies. In Saša Drezgić, Saša Žiković, Marko Tomljanović. 2nd Scientific Conference on Economics of Digital Transformation - Smart Governments, Regions and Cities. Rijeka: University of Rijeka: Faculty of Economics and Business, 2020, p. 19-30. ISBN 978-953-7813-56-7.

@inproceedings{1607582,
   author = {Baisa, Barbora},
   address = {Rijeka},
   booktitle = {2nd Scientific Conference on Economics of Digital Transformation - Smart Governments, Regions and Cities},
   editor = {Saša Drezgić, Saša Žiković, Marko Tomljanović},
   keywords = {Job promotion; reciprocity; experiment; gift exchange; fairness},
   howpublished = {tištěná verze "print"},
   language = {eng},
   location = {Rijeka},
   isbn = {978-953-7813-56-7},
   pages = {19-30},
   publisher = {University of Rijeka: Faculty of Economics and Business},
   title = {Consequences of Unfair Job Promotions in Companies},
   url = {https://www.edt-conference.com/images/Smart%20Governments_Regions_and_Cities_.pdf},
   year = {2020}
}

TY  - JOUR
ID  - 1607582
AU  - Baisa, Barbora
PY  - 2020
TI  - Consequences of Unfair Job Promotions in Companies
PB  - University of Rijeka: Faculty of Economics and Business
CY  - Rijeka
SN  - 9789537813567
KW  - Job promotion
KW  - reciprocity
KW  - experiment
KW  - gift exchange
KW  - fairness
UR  - https://www.edt-conference.com/images/Smart%20Governments_Regions_and_Cities_.pdf
N2  - Companies, particularly large organizations with several hierarchical levels, often need to fill a vacant managerial position to maintain efficient operations. When the decision is to use internal resources rather than hire a candidate from the outside, companies usually fill the position by promoting a lower-ranking employee. The promotion to the managerial level comes with an increase in salary, a change in professional duties, and a shift in the career path and in the company hierarchy. Since all of these are usually perceived as desirable, a promotion can cause strong emotional reactions both from the employee who was promoted and from employees who were not. If the promotion of an employee to a managerial position is perceived by the non-promoted employees as undeserved or unfair, the non-promoted ones might become demotivated and might decrease their productive effort. A decrease in productive efforts and other unethical behaviors are often difficult to measure in the workplace. Experimental economics provides a suitable tool for studying (i) the behavior of individuals under controlled conditions when promotions perceived as unfair happen in companies; (ii) the reactions of promoted and non-promoted individuals; and (iii) the changes in productivity. The analysis of the information gathered via conducted laboratory experiment shows that when remuneration of employees is perceived as unfair their productivity decreases. Moreover, experimental design studying the reaction of promoted versus non-promoted employees was proposed to be able to deepen the knowledge of unfair job promotions in companies.
ER  -

BAISA, Barbora. Consequences of Unfair Job Promotions in Companies. In Saša Drezgi\'c, Saša Žikovi\'c, Marko Tomljanovi\'c. \textit{2nd Scientific Conference on Economics of Digital Transformation - Smart Governments, Regions and Cities}. Rijeka: University of Rijeka: Faculty of Economics and Business, 2020, p.~19-30. ISBN~978-953-7813-56-7.

Detailed Information on Publication Record