The impact of guanxi human resource management practices on beneficiaries’ altruistic behavior: The perspective of compensatory ethics

Abstract: Guanxi HRM practices depict how performance and contributions give their way to interpersonal relationships for personnel decisions. That is, an employee’s relationships with the supervisor can largely factor in job tasks, performance appraisal, promotion, compensation, and training opportunities. Prevalent and conspicuous, guanxi HRM practices compromise organizational justice and undermine the legitimacy of personnel decisions. The upshot would include a group of demotivated employees, discredited employer branding, and intensified organizational politics. The extant literature has paid much attention to the detriments to individuals, organizations, and society. Yet, reactions from the beneficiaries have been largely overlook. Would they take it for granted? Or would they otherwise seek to “call it even”? We can hardly reach to a firm conclusion on what guanxi HRM practices implicate until those with vested interests are involved in the analysis.

Drawing upon compensatory ethics theory, we made the first attempt to theoretically explicate and empirically investigate the position that guanxi HRM practices could spur the beneficiaries’ altruistic behavior by arousing the intention to “call it even.” We conducted four independent experiments with various samples and materials to allow for causal inferences. Specifically, we tested the main effect of guanxi HRM practices on the beneficiaries’ altruistic behavior (Hypothesis 1) and the mediation effect of guilt (Hypothesis 2) with a vignette of performance evaluation and bonus allocation in Study 1a (N = 124) and 1b (N = 184), respectively. The serial mediating effect involving moral self-image (Hypothesis 3) was tested in Study 2 (N = 211), with a vignette of promotion. Finally, we tested the moderating effect of coworker relationship closeness (Hypothesis 4) in Study 3 with a 2 (guanxi HRM practices: high vs. low) × 2 (coworker relationship closeness: high vs. low) factorial design (N = 211) using the vignette of bonus allocation.

The results of four experiments fully supported our theoretical model. We found that the beneficiaries’ moral self-image and sense of guilt serially mediated the effect of guanxi HRM practices on their altruistic behavior (Study 1 and Study 2). Moreover, coworker relationship closeness moderated the serial mediating effect such that guanxi HRM practice sparked a more substantial impact on the beneficiaries’ altruistic behavior when they enjoy more close relationships with coworkers than vice versa (Study 3). Collectively, the reported effect size – being from medium to large, the various samples, and the diverse set of materials lead to robust findings.

Therefore, those beneficiaries would “call it even” than take it for granted. This research stressed the power of moral compensation and revealed a bright side of guanxi HRM practices for non-beneficiaries, those deprived of justice and resources. We added a meaningful complement to the extant sentiments that deem guanxi HRM practices overwhelmingly detrimental. It is also essential to differentiate between supervisors, beneficiaries, and non-beneficiaries to better understand this phenomenon. In short, this research broadens the theoretical spectra and informs organizations on how to balance the pros and cons of guanxi HRM practices. 

"