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Information Use in Counter-Offer Decisions: An Examination of Factors that Influence Management Counter-Offer Decisions |
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| Authors: | William I MacKenzie Jr Brian S Klaas John A McClendon |
| Institution: | 1. BAB 355??MGT/MKT Department, University of Alabama in Huntsville, 301 Sparkman Drive, Huntsville, AL, 35899, USA 2. Moore School of Business, University of South Carolina, Columbia, SC, 29208, USA 3. Fox School of Business, Department of Human Resource Management, Temple University, Philadelphia, PA, 19122, USA |
| Abstract: | We examine factors which influence manager assessments of employee value in response to outside employment offers. Data were collected from 312 managers on counter-offer decisions. We found the size of manager counter-offers increase as a result of the attractiveness of the outside offer, the presence of a neutral, third-party recommendation and when the recommending direct supervisor has an incentive to minimize compensation costs. Additionally, we found a significant interaction between offer attractiveness and third-party recommendation, where counter-offers made to employees with highly attractive offers increased more dramatically when a neutral manager recommended the employee in addition to the immediate supervisor. |
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