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This document explores the concepts of organizational justice, focusing on the perceived fairness of administrative processes. It discusses three main types of justice: distributive (outcome fairness), procedural (process fairness), and interactive (quality of interactions). Key elements include Leventhal’s Six Attributes of Fair Procedures and the influence of organizational culture on equity perceptions. The text emphasizes the importance of open communication, employee participation, and grievance systems in fostering a fair workplace, ultimately affecting employee engagement and commitment.
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Pay Administration Procedural Justice © Nancy Brown Johnson 2005
Exercise: Think of Something that was unfair. • Write down what it is and why it was unfair.
Organizational Justice Defined: the perceived fairness of the organization • Distributive: outcome fairness • Procedural: process fairness • Interactive: how you perceive your interactions • Were you treated with dignity and respect • Were you given an adequate explanation
Procedural Justice • Influences citizenship behavior • Employees more likely to go above call of duty
Leventhal’s Six Attributes of a Fair Procedure • Consistent • Bias Free • Accurate • Correctable in case of error • Representative of all concerned • Based upon prevailing ethical standards
Elements of Administration • Culture: influences the interpretation of the compensation system • paternalistic, democratic, bureaucratic • general human resource philosophy • influences human resources: ASA-Attraction, Socialization, Attrition
Elements of Administration: Openness of Communication System • Information available • Information kept secret
Communications • Ask for employee input • jobs • labor markets • performance • Considerations • employee compensation expectations • benefits • administrative • equity perceptions
Pay Secrecy • Better when poor system • Better to communicate when good system
Employee Participation: Two ways to participate • System design • goals, major policies • System operation • how the system is carried out
Grievance Systems • Appeals procedures that allow employees to complain about compensation issues • Attitude surveys- that give employees the opportunity to voice complaints • Hot lines
Summary • Administrative issues influence commitment • Judged against backdrop of culture • Perceived fairness of system will influence employee willingness to engage in activities beyond job