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Charmine E. J. Hartel
University ofTulsa
This research was supported by the Colorado State University College of Business
Summer Research Grant Program. An abbreviated version of this article was presented at
the 50th Annual meeting of the Academy of Management, Women in Management Divi
sion, August 13,1990, San Francisco, California.
We gratefully acknowledge the critical comments of Kevin R. Murphy, Jeanette N.
Cleveland, and Russell Cropanzano on an earlier draft of this article.
Correspondence concerning this article should be addressed to Vicki S. Kaman, De
partment of Management, College of Business, Colorado State University, Fort Collins,
Colorado 80523.
1989; Major & Konar, 1984; Gerhart, 1990); situational variables, such
as alternative job offers (Gerhart and Rynes, 1991); and factors inherent
in pay structures, including market rates, job evaluation points and the
gender composition of a job (Rynes, Weber & Milkovich, 1989). Despite
efforts to find systematic sources of discrimination in the way that pay
is allocated to individuals at the start of their careers, the evidence sug
gests that determination of pay is an interactive, interpersonal process,
and that gender differences in pay outcomes reflect subtle differences in
the ways that men and women think about pay and behave during the
recruitment and hiring period when pay is open to negotiation.
PAY EXPECTATIONS
job choice.
Hypothesis la. Men's pay expectations for a specific job will be higher than
women's pay expectations.
NEGOTIATION STRATEGIES
Another factor which may explain how men achieve higher starting
salaries is the approach individuals take when they have the oppor
tunity to negotiate for pay. Individuals who ask for more when pay is
being determined generally receive more. MBA students reporting that
they negotiated for salaries higher than those initially offered by com
panies from which they accepted job offers obtained significantly higher
salaries than those students who did not negotiate (Gerhart & Rynes,
1991). Managers allocated larger salary increases in a simulation study
when subordinates made "dependency threats" (e.g., reminding the
manager of their worth and threatening to leave if not rewarded as ex
pected) (Bartol & Martin, 1988, 1989). Student "employees" making
strong pay demands were given higher raises than those making no de
mands (Freedman, 1978, 1979), and upward influence strategies have
been used to significantly predict salary level of business school alumni
(Dreher et al., 1988).
Gerhart & Rynes (1991) found that male and female MBA gradu
ates negotiated for higher salaries at the same rate, but that male
MBA's who negotiated reported significantly higher final offers than fe
male graduates. Stevens, Bavetta and Gist (1991) found that, after
training in pay negotiation techniques, and again after additional goal
setting training, male students were able to negotiate significantly
higher salaries in a pay negotiation simulation. If men and women ob
Hypothesis 2a. Men, compared to women, will plan a more active, aggressive
negotiation strategy for a starting salary.
Hypothesis 2c. Men will perceive more opportunity for legitimate negotiations
than women.
METHOD
Subjects
Participants in the study were 238 students in upper-level business
classes at a state university, 127 of whom were female. The mean age
was 23.3, with a mode of 21 (29%). The sample was 71% business ma
jors; 69% were seniors, 23% juniors, 5% graduate students, 3% sopho
mores.
Procedure
Measures
Table 1
Sample Items, Mean Composite Scores, and Mean Probabilities for
Mean Probabilities
Acceptance?3 Items
Ask for the salary I hope to get .62 67.5 68.5
viduals as- the basis for their negotiation strategies. These are (a) the
salary the applicant hopes to get (applicant target point); (b) the salary
the applicant believes the employer will offer (recruiter target point);
(c) the minimum salary the applicant will accept (applicant resistance
point); (d) the highest possible salary the applicant believes the em
ployer could offer (recruiter resistance point). Participants were asked to
indicate these four points. Expectations for negotiation success were
measured by calculating the difference between pay expectations and
applicant target points and the difference between expectations and ap
plicant resistance points. Larger differences between pay expectations
and applicant resistance points and smaller differences between pay ex
pectations and applicant target points indicated greater degrees of an
ticipated negotiation success.
Opportunity for negotiation was assessed two ways. The difference
between applicant and recruiter target points represented how far par
ticipants felt their desired outcome would be from that of the recruiter.
Additional Measures. Using 11-point scales (1= not at all, 11= very),
subjects rated (a) the job's desirability, (b) their qualifications for the job
and (c) their perceived chances of getting the job. They were also asked
to estimate the proportion of men and women holding the job.
RESULTS
For both men and women, the mean estimated proportion of females
in the job was 32%. Mean desirability of the job was 6.1 (below "some
what desirable") on the 11-point scale. The mean rating of how qualified
participants felt was 7.5 (a little below "somewhat qualified") and mean
rating of chances of getting the job was 6.9 (below "somewhat good").
Males and females did not differ significantly on their ratings of the
job's desirability or chances of getting the job, but did differ on their
of how = 7.8 for males,
ratings qualified they felt (mean qualifications
7.2 for females; ?(235) = 2.17. p<.05).
Mean pay expectations, target and resistance points for men and
women are shown in Table 2.
An analysis of variance was done with pay expectations as the de
pendent variable, and gender and job description version (i.e., how salary
information was given) as independent variables. Self-ratings of how qual
ified participants were for the job were incorporated as a covariate. Mean
expectations for men and women respectively were $21,400 and $20,700
for the ambiguous version, $21,200 and $20,600 for the salary range version,
and $21,300 and $20,200 for the social comparison version. As hypothe
sized, the main effect for gender was significant (F(l,228)=4.2, p<.05).
Table 2
Mean Pay Estimates for Males and Females in Thousands of Dollars
Males Females t
*p < .05
Main effects for job description version and the predicted interaction
effect were not significant, although they were in the predicted direc
tion, with the greatest difference between mean expectations for males
and females being for the social comparison version ($1,100).
DISCUSSION
Practical Implications
Future research could also extend that of Keys, who surveyed Certi
fied Management Accountants (1985), to examine pay expectations and
negotiation strategies of adults, rather than students, so that
working
we can learn how and whether these change for individuals at different
points in their careers. Perhaps our failure to find gender differences in
anticipated success of pay negotiations can be explained by our students'
lack of experience and confidence in their negotiation skills.
Finally, this study asked participants their expectations and plans
for a hypothetical job. There is a strong need for studies of actual pay
negotiation behaviors in real-life settings. A needed addition to percep
tion-based studies, such as this one, lab studies (e.g., Stevens et al.,
1991) and studies which simply ask whether or not individuals have
engaged in "negotiation" ( e.g. Gerhart & Rynes, 1991) is research based
on actual observations or detailed reports of what actually takes place
as men and women negotiate for pay. Perhaps research along the lines
of that discussed by Ragins and Sundstrom (1989), which examined the
approaches of successful female executives, could be used to discover the
specific strategies which work for men and women at different points in
their careers. In the meantime, we can make both men and women more
aware of the beliefs and expectations which might be influencing the
financial outcomes of their careers.
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