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Business Ethics Speaker Series: Fei Song

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Ted Rogers School of Management

575 Bay Street

Room: TRS 3-099

Toronto, ON M5G 2C5

Canada

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Fei Song:

The Good and bad of Generosity: A New Way of Understanding Efficiency Wages

Drawing on cross-disciplinary insights from economics, sociology, social psychology, and management, we investigated unethical behaviors induced by both above- and below-market-wages in employee-manager exchange relationships. Two experimental studies based on behavioral economics games showed that after employees had reciprocated their managers’ wage offers with commensurate work efforts, managers’ previous compensation decisions still had potent effects on employees’ subsequent unethical behaviors. On the one hand, below-market-wages resulted in employees’ reciprocal deviancein terms of sabotage and deception against their managers. On the other hand, generous, above-market-wages led employees to engage in unethical reciprocity to unfairly and dishonestly benefit their managers at the expense of a third party. When managers had the possibility to reward employees’ unethical reciprocity, employees demonstrated more favoritism but not more deception, especially when they were paid below- rather than above-market-wages. We discuss our results by applying cross-disciplinary insights about exchange models and compensation to the management domain.


Dr. Fei Song is a Professor of HRM/OB in the Ted Rogers School of Management, Ryerson University. She is trained in the field of Organizational Behaviour. Theories and methodologies from social psychology and experimental/behavioural economics have significantly influenced her research. Her research interests include 1) behavioural decision-making, e.g. cooperation and competition, trust and reciprocity, fairness, group decision-making, (un)ethical decision-making and cross-cultural issues, and 2) strategic compensation and productivity. She has been awarded many research grants and awards, and has published widely in top management and social science journals such as the Academy of Management Journal, Organizational Behavior and Human Decision Processes, Management and Organization Review, Game and Economic Behavior, Journal of Economic Behavior and Organization, International Journal of Conflict Management, Experimental Economics, and Journal of Economic Psychology. She teaches in the areas of organizational behavior, cross-cultural and global management, strategic thinking and negotiation, strategic compensation, and research methods.

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Ted Rogers School of Management

575 Bay Street

Room: TRS 3-099

Toronto, ON M5G 2C5

Canada

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