Hello John,
The following article may be of your interest. The study suggests the interdependence between managers and subordinates, and the following "dependency threat," influences managerial pay allocation decisions. The study also cites many other good studies, such as Fossum & Fitch (1985) and Freedman (1978), and so you may want to look into them as well.
Bartol, K. M., & Martin, D. C. 1989. Effects of dependence, dependency threats, and pay secrecy on managerial pay allocations. Journal of Applied Psychology, 74(1): 105-113.
Hope it helps,
Tae-Youn Park
From: Organizational Behavior Division Listserv [mailto:OB@AOMLISTS.AOM.ORG] On Behalf Of John Marvel
Sent: Thursday, March 16, 2017 3:40 PM
To: OB@AOMLISTS.AOM.ORG
Subject: [OB-LIST] Managerial discomfort with administering performance pay
I'd greatly appreciate any citations having to do with managerial discomfort with performance pay. I'm interested in why managers may be personally uncomfortable with (and possibly unwilling to participate in) systems in which they are responsible for distributing performance rewards to employees. Managers may feel bad about having to deny an employee a bonus, for instance, and not like the feelings of social awkwardness that doing so entails. They may also find it uncomfortable to have to justify differences in bonus size to employees.
Thanks very much for your help!
Schar School of Policy and Government