Differential Mode of Status: Theoretical Perspectives and an Analysis on Its Impact on Employee Engagement

With the gradual deepening of China’s economic reform, “differential mode of status,” which is created by the dual-track employment system in state-owned enterprises, has become a major hindrance for employees’ enthusiasm and initiative in workplaces. Drawing upon the “differential mode of status” theory, this paper firstly explores the internal relationships among “differential mode of status,” employees’ perception of fairness and sense of belonging, and employee engagement. Then the mechanism of “differential mode of status” influencing employee engagement is discussed. Lastly, coping strategies are brought forward based on the actual situation of low work devotion especially in China’s state-owned enterprises.