The Manager Giveth, the Manager Taketh Away: Variation in Distribution/Recovery Rules Due to Resource Type and Cultural Orientation

Abstract

Although the resource allocation literature has frequently examined the decision rules used to distribute monetary resources, many other types of resources have not been systematically studied. In addition, very little is known about the allocation rules that might be used when resources are recovered (i.e., taken away) as opposed to distributed. As managers frequently face decisions regarding the distribution or recovery of different resources, developing a greater understanding of the rules they might use to give or take away resources is important. This study examined the difficulty of resource allocation decisions and allocation rule choices. Our results suggest need rules are generally preferred by allocators, although rule preferences were affected by both the type of resource and whether the resource was being distributed rather than recovered. In particular, the preference for equality rules was stronger when resources were recovered. Our findings also suggest that managers may find recovery decisions more difficult than distribution decisions, and that monetary and affiliative resources are among the most difficult to allocate.