How Much Should I Give and How Often? The Effects of Generosity and Frequency of Favor Exchange on Social Status and Productivity

Abstract

Data collected from 161 employees of a large firm suggest that perceived generosity is positively related to individual social status, but maintaining an equitable balance is positively related to individual productivity. Employees may address this dilemma by increasing how often they exchange favors rather than by seeking exchange equity. Frequent favor exchange was positively related to both status and productivity and strengthened the generosity-status and the balance-productivity relationships. Findings highlight the value of studying employees, particularly the favor exchange among peer frequency of exchange.