A study published in the Journal of Applied Psychology found that there is a positive correlation between the presence of an informal alliance within an organization and the perceptions of meritocracy, fairness, and legitimacy among employees. Employees who felt they were part of a team or had a strong connection to colleagues perceived their rewards as more meritocratic, fair, and justified than those who did not. This suggests that having a sense of belonging to a group can increase feelings of trust and confidence in one's employers, leading to greater job satisfaction and engagement.
These findings also highlight potential drawbacks to using informal networks for career advancement. When individuals are promoted based on personal connections rather than merit, it can create resentment and distrust among other employees who may feel they have been passed over unfairly. In addition, this type of promotion system can lead to a lack of diversity, as people from different backgrounds or experiences may be excluded from opportunities due to favoritism.
The impact of informal alliances on organizational reward systems varies depending on the industry and company culture. Some organizations may actively encourage them as a way to build morale and promote collaboration, while others may view them as detrimental to productivity and fairness. Regardless of whether they are seen as positive or negative, it is important for managers to acknowledge the existence of these networks and ensure that all employees feel valued and respected regardless of their position within them. This could involve creating clear guidelines for promotion decisions and providing regular feedback on performance.
The study shows that informal alliances play an important role in shaping perceptions of meritocracy, fairness, and legitimacy in organizational reward systems. While they can have benefits such as increased teamwork and loyalty, they must be managed carefully to avoid causing resentment and discrimination. Managers should strive to create a culture where everyone feels heard and recognized for their contributions, regardless of their relationships with colleagues.
How do informal alliances affect perceptions of meritocracy, fairness, and legitimacy in organizational reward systems?
Informal alliances can have various impacts on perceptions of meritocracy, fairness, and legitimacy within an organization's reward system. When employees are aware that their colleagues or superiors have formed informal relationships with each other, it may create feelings of favoritism or unfairness towards those who are not part of the alliance.