PAY-ALLOCATIONS BY MANAGERS - A POLICY-CAPTURING APPROACH

This study used a policy-capturing approach to examine 3120 pay-alloca tion decisions of 65 managers (31 male, 34 female) who work in organiz ations that have a pay for performance policy. Subjects were asked to respond to packages that varied in terms of performance of subordinate s, specialized skills/expertise of subordinates, difficulty in replaci ng the subordinates, possibility of potential subordinate turnover, an d current salary of subordinates. Results indicated that all five fact ors were significant and in the direction expected. The interaction be tween performance and job offer was significant for only two of the 65 managers. The interactions between specialized skills and job offer a nd difficulty in replacement and job offer were not significant for an y of the managers. Most of the variance across the managers was accoun ted by sampling error and criterion unreliability. Results also indica ted that subjects' explicit rankings of the five factors did not corre spond highly with the rankings of their regression weights.