Abstract

This paper introduces a multi-level perspective on the relationships of idiosyncratic deals (i-deals) with organizational outcomes (i.e., client satisfaction) and investigates how and under which conditions these relationships manifest. Based on contagion theory, we proposed that the positive effects of i-deals will spill over within organizational units (indicated by reduced emotional exhaustion and enhanced collective commitment), which leads to increased customer satisfaction. Moreover, it was postulated that the effects of i-deals would be more prominent in units with high age diversity, as i-deals are more important in units where people's work-related needs are more heterogeneous due to the higher diversity in employee age. A study among 19,780 employees and 17,500 clients of a German public service organization showed support for the contagion model and showed that i-deals were negatively related to individual emotional exhaustion and subsequently positively to collective commitment within units and client satisfaction measured six months later. Emotional exhaustion and collective commitment mediated the relationships between i-deals and client satisfaction. Finally, we found that the relationships between i-deals and emotional exhaustion and client satisfaction were more strongly negative in units with high age diversity rather than in units with low age diversity, indicating the benefits of i-deals within units with high age diversity to reduce emotional exhaustion and enhance client satisfaction.