Skip to main content
Article thumbnail
Location of Repository

Using profit sharing to enhance employee attitudes: a longitudinal examination of the effects on trust and commitment

By Jacqueline A-M. Coyle-Shapiro, Paula C. Morrow, Ray Richardson and Stephen R. Dunn


The ability of profit sharing to increase organizational performance via positive changes in employee attitudes has yielded mixed results. Drawing on principal agent, expectancy and organizational justice theories, this paper assesses how perceptions of profit sharing (capacity for individual contribution and organizational reciprocity) alter organizational commitment and trust in management using longitudinal data provided by 141 engineering employees. Favorable perceptions of profit sharing served to increase organizational commitment while only organizational reciprocity predicted trust in management. The relationship between organizational reciprocity and commitment was partially mediated by trust in management. Implications for the design of profit sharing initiatives are noted

Topics: H Social Sciences (General)
Publisher: Wiley Periodicals Ltd.
Year: 2002
DOI identifier: 10.1002/hrm.10052
OAI identifier:
Provided by: LSE Research Online
Download PDF:
Sorry, we are unable to provide the full text but you may find it at the following location(s):
  • (external link)
  • http://www3.interscience.wiley... (external link)
  • (external link)
  • Suggested articles


    1. (1999). Absenteeism and employee sharing: An empirical analysis based on French panel data, doi
    2. (1989). Agency theory: An assessment and review. doi
    3. (1988). Agency- and institutional-theory explanations: The case of retail sales compensation. doi
    4. (1995). An integrative model of organizational trust. doi
    5. (1997). Commitment in the workplace: Theory, research and application. Thousand Oaks, doi
    6. (2000). Consequences of the psychological contract for the employment relationship: A large scale survey. doi
    7. (1988). Correlates of employee satisfaction with stock ownership: Who likes an ESOP most? doi
    8. (1995). Creating high performance organizations. doi
    9. (1999). Determinants of the survival of gainsharing programs. doi
    10. (1993). Dispositional affectivity as a predictor of work attitude and job performance. doi
    11. (1992). Distributive and procedural justice as predictors of satisfaction with personal and organizational outcomes. doi
    12. (1999). Does pay for performance increase or decrease perceived self-determination and intrinsic motivation? doi
    13. (1998). Does profit sharing increase firms’ profits? doi
    14. (1994). Effects of human resource systems on manufacturing performance and turnover. doi
    15. (2000). Employee commitment to the organization: The contribution of perceived organizational support. Paper presented at the Annual Meeting of the Academy of Management,
    16. (1991). Employee ownership: a conceptual model of process and effects. doi
    17. (1997). Employee participation and assessments of support for organizational policy changes. doi
    18. (1994). Employee participation programs, group-based incentives, and company performance: A union-non union comparison. doi
    19. (1998). Employee perceptions of the fairness of work group incentive pay plans. doi
    20. (1996). Employee stock ownership and corporate performance among public companies. doi
    21. (1987). Employee stock ownership and employee attitudes: A test of three models. doi
    22. (1982). Employee-organizational Linkages: The psychology of commitment, absenteeism, and turnover. doi
    23. (1994). Expatriate managers and the psychological contract. doi
    24. (1998). High commitment management in the UK: evidence from the Workplace Industrial Relations Survey, and Employers’ Manpower and Skills Practices Survey. doi
    25. (2002). High performance HR practices and customer satisfaction: Employee process mechanisms. Working paper, Center for Advanced Human Resource Studies,
    26. (1987). Human resource management and industrial relations. doi
    27. (1998). Human resource management and the theory of rewards: evidence from a national survey. doi
    28. (1997). Ignoring commitment is costly: new approaches establish the missing link between commitment and performance. doi
    29. (1981). Impact of employee participation on pay plan development. Organizational Behavior and Human Performance, doi
    30. (1995). Incentive effects of profit sharing. In
    31. (2000). Incentives: theory and practice.
    32. (1993). International Review of Industrial and Organizational Psychology, doi
    33. (1992). Lowering floor and raising ceilings: A longitudinal assessment of the effects of an earnings at-risk plan on pay satisfaction. doi
    34. (1998). Managers as initiators of trust: An exchange relationship framework for understanding managerial trustworthy behavior. doi
    35. (2000). Manufacturing advantage: Why high-performance work systems pay off. doi
    36. (1988). New developments in profit sharing. In
    37. (1980). New work attitude measures of trust, organizational commitment and personal need non-fulfillment. doi
    38. (1998). Not so different after all: A cross discipline view of trust. doi
    39. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. doi
    40. (1995). Organizational commitment, turnover and absenteeism: An examination of direct and interaction effects. doi
    41. (1997). Organizational commitment. doi
    42. (1996). Organizational responses to crisis: The centrality of trust’. In doi
    43. (1990). Paying for productivity. 95-142. Washington DC: Brookings Institute. Profit sharing and employee
    44. (1995). Perceived organizational support and organizational doi
    45. (1997). Perceived organizational support, discretionary treatment, and job satisfaction. doi
    46. (1986). Perceived organizational support. doi
    47. (1994). Percept-percept inflation in microorganizational research: An investigation of prevalence and effect. doi
    48. (1995). Profit sharing and organizational change. doi
    49. Profit sharing: Does it make a difference?. doi
    50. (1988). Profit-Related pay: prose discovered. doi
    51. (1989). Profit-sharing and productivity: An analysis of U.K. engineering firms. doi
    52. (1992). Profit-sharing and productivity: Microeconomic evidence from the United States. doi
    53. (2001). Profit-sharing, employment stability, and wage growth. doi
    54. (1992). Support for profit sharing and organizational commitment: A path analysis. doi
    55. (2001). Team rewards: How far have we come? doi
    56. (1993). The dimensionality and stability of organizational commitment. Discussion Paper No. 149, Centre for Economic Performance, London School of Economics: London. Profit sharing and employee attitudes 32
    57. (1990). The Effects of profit-sharing on employment, wages, stock returns and productivity: Evidence from micro-data. doi
    58. (1984). The evolution of cooperation. doi
    59. (1991). The impact of absenteeism and quits of profitsharing and other forms of employee participation. doi
    60. (1995). The impact of human resource management practices on turnover, productivity, and corporate financial performance. doi
    61. (1998). The influence of group incentives, training, and other human resource practices on firm performance and productivity. Dissertation Abstracts International,
    62. (1986). The moderator-mediator distinction in social psychological research: Conceptual, strategic and statistical considerations. doi
    63. (1987). The organizational impact of profit sharing. doi
    64. (1986). The promise of gainsharing.
    65. (1996). The quest for justice on the job. Thousand Oaks,
    66. (1992). The relationship between satisfaction, attitudes, and performance: An organizational level analysis. doi
    67. (2000). The role of perceived organizational support in the voluntary turnover process. Manuscript under review.
    68. (2001). Toward a theory of psychological ownership in organizations. doi
    69. (1996). Transformational leadership behaviors and substitutes for leadership as determinants of employee satisfaction, commitment, trust, and organizational citizenship behavior. doi
    70. (1996). Trust and breach of the psychological contract. doi
    71. (1998). Trust and distrust: New relationships and realities. doi
    72. (1990). Trust in employee/employer relationships: a survey of West Michigan managers.
    73. (1998). Understanding the influence of national culture on the development of trust. doi
    74. (1994). Validity of the dimensions of the pay satisfaction questionnaire: evidence of differential prediction. doi
    75. Why do firms adopt profit-sharing and employee ownership plans? doi

    To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.