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Societal Inequality, Corruption and Relation-Based Inequality in Organizations
Sarah Hudson1, Helena V González-Gómez2, Cyrlene Claasen1
1Department of Management & Organisation, Rennes School of Business, 22 Rue Robert d'Arbrissel, 35065 Rennes, France.
Journal of Business Ethics : JBE
|October 11, 2021
Summary
Societal inequality is linked to relation-based HR practices within organizations. Country corruption levels moderate the impact of these practices on employee commitment, highlighting cross-country differences.
Area of Science:
- Management research
- Organizational behavior
- Cross-cultural studies
Background:
- Emerging research on societal inequality's impact on organizations.
- Limited understanding of cross-country variations in inequality and corruption effects on employees.
- Need to explore relation-based inequality (RBI) and its link to employee commitment.
Purpose of the Study:
- To investigate the relationship between societal inequality and perceived unequal HR practices (RBI).
- To examine the moderating effect of country corruption on the RBI-employee commitment link.
- To contribute to cross-country management research on inequality and corruption.
Main Methods:
- Survey of 691 employees across five countries.
- Utilized country-level indicators for corruption.
- Analyzed the link between societal inequality, RBI, and employee commitment (continuance, affective, normative).
Main Results:
- Societal inequality (income, health, education) is positively associated with higher levels of relation-based HR practices.
- The effect of relation-based inequality on employee commitment varies across commitment types (continuance, affective, normative).
- Country corruption levels significantly moderate the relationship between relation-based inequality and employee commitment.
Conclusions:
- Societal inequality influences internal organizational HR practices, creating relation-based inequality.
- Cross-country corruption levels play a crucial role in how relation-based inequality affects employee commitment.
- Findings underscore the importance of considering societal context in management research and practice.
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