Understanding the negotiation and performance effects of idiosyncratic deals: Test of a moderated mediation model

Abstract

Despite the prevalence of idiosyncratic deals (i-deals) as an adaptive strategy for the effective management of an increasingly diverse workforce, the drivers of these customized work arrangements and why they enhance mutuality in the employment relationship are not well understood. Drawing on an integration of social cognitive theory and resource-based perspective, we address these interrelated questions by proposing and examining a moderated mediation model of antecedents and outcomes of task and career i-deals. Multi-source and multi-wave data obtained from supervisors and employees in service and manufacturing organizations were used to test our hypothesized relationships. Results of multilevel path analysis reveal that both employee approach motive and supervisor political skill relate to i-deals. Furthermore, high-commitment HR system moderates the relationship between supervisor political skill (but not employee approach motive) and i-deals such that this relationship is stronger when high-commitment HR system is high but not low. Additionally, i-deals relate to service creativity but indirectly through personal skill development suggesting a potential human capital (relative to the predominantly motivational) explanation of the performance implications of i-deals. We discuss the implications of these findings for understanding and enhancing the effectiveness of negotiating and implementing i-deals.