Date of Award


Document Type


Degree Name

Doctor of Philosophy (PhD)


A part of Freedman and Montanari's (1980) managerial reward allocation model was examined in the present study. The hypotheses focused on two categories of antecedent variables, organizational and managerial, and on the dependent variable of choice of mode of reward allocation. They were tested utilizing questionnaire data collected from 155 managers in eleven financial institutions. The only hypothesis that was confirmed related managerial pay increase goals to the choice of reward allocation mode. In order to test the relative importance of different managerial and organizational variables in determining the mode of reward allocation mode, stepwise regression analyses were performed for each reward allocation mode. The results of the stepwise regressions suggested that: (a) organizational variables and managerial variables interact to influence the choice of reward allocation mode, and (b) there was no consistent relationship between any two sets of predictors for any one mode. Overall, the results indicated that the relationships between single variables and reward allocation modes were less strong than in previous laboratory studies. However, when managerial and organizational variables were considered simultaneously, a number of significant relationships were found. The results also pointed to a strong need for refinement of measurement of reward allocation modes so that continued examination of the reward allocation process using Freedman and Montanari's (1980) model can be profitable.