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NTU Management Review Vol. 33 No. 3 Dec. 2023

2.2 Subordinates’ Prior Performance and Resource Allocation Preference
Allocators’ distributive decisions are context-sensitive, and there are few conditions
under which allocators use one signal distributive rule to distribute all resources
(Meindl, 1989; Kabanoff, 1991). For example, Konow (2001) states that when the

goal of the distributor is productivity, allocators are more likely to distribute resources
equitably; nonetheless, allocators may also be motivated by other concerns such as self-
interest, which also affect the allocators’ distribution preferences. Cook and Hegtvedt
(1983) suggest that goal interactions are important determinants of the selection of

distribution rules, and different rules can be used simultaneously or in combination.
Babcock and Loewenstein (1997) also indicate that an individual’s choice is affected
by both self-interest and moral correction. In line with the above studies, Leventhal,
Michaels, and Sanford (1972) demonstrate that when there is a sizeable difference in

levels of performance among group members, allocators prefer using a distribution rule
to simultaneously reward superior performers while keeping all members sufficiently
satisfied to prevent negative feelings.
Similarly, a regional manager’s allocation preferences may be affected not only

by his own preferred goals but also by other factors (e.g., the performance of branch
managers). In our case company, the responsibilities of the regional manager are ensuring
that the branch offices within his region achieve the required performance (i.e., target sales
revenues) and maximizing the overall performance of the branch offices within the region.

In other words, the regional managers in our case company rely on branch managers
to complete their own tasks, and individual performance counts toward the overall
performance of branch offices within their region. It is therefore reasonable to expect that
the focus of the regional manager is task-directed and achievement-oriented. People who

have task-directed relationships tend to apply distributive rules that maximize overall
productivity (Kabanoff, 1991; Cook and Hegtvedt, 1983; Sondak, Neale, and Pinkley,
1999; Pfeffer and Langton, 1988). In this case, the distribution preferences of the allocator
reflect the productivity or contributions of the recipients.

The task-directed relationship between branch managers and the regional manager
leads to the use of distributive rules that reflect the productivity of the branch managers, in
other words, the equity rules. Moreover, according to the expectancy value of the theory of
motivation, behavior results from the decisions made to maximize one’s overall expected

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