Perceptions and Consequences of Organizational Injustice

1. Perceptions and Consequences of Organizational Injustice

2. Organizational Practices • Performance evaluation • Pay cuts • Drug testing • Smoking bans • Layoffs

3. What Do Employees Consider Fair (Unfair)? • Distributive justice • Outcome favorability • Procedural justice • Perceptions of the methods and procedures used in the decision making process • Appropriate criteria • Consistent • Without personal bias • Accurate information • Voice

4. Reactions to Procedural Injustice • Distancing responses • Commitment declines • Intention to quit increases • High cost of turnover

5. Reactions to Procedural Injustice (cont.) • Retaliatory responses • Extending lunch & coffee breaks • Personal work on company time • Wasting company materials • Damaging property or processes

6. Reactions to Procedural Injustice (continued) • Organizational citizenship declines • Extra-role behaviors (Doing more than is required) • Willingness to recruit for the organization • Willingness to attend organizational events • “Pitching in” to help others • Neglect responses • Work effort declines (quantity & quality)

7. Fair-process Effect • The more one considers a resource allocation process to be fair, the more one is accepting of and satisfied with the decision -- independent of the outcome received (favorable or unfavorable) • People are willing to accept unfavorable outcomes when the allocation procedures are fair • Reactions are particularly negative when outcomes are unfavorable and procedures are unfair

8. Performance Appraisal & the Fair-process Effect • Independent of the amount of the raise, employees who perceive that performance appraisals are conducted in a fair manner, report more satisfaction with pay and more satisfaction with the appraisal itself

9. Interpersonal Justice • Quality of interpersonal treatment received during the enactment of organizational procedures • Demonstrating concern for the needs and well being of those affected • empathy • Treating those affected with dignity and respect • Polite interaction & interpersonal sensitivity

10. Interpersonal Justice (continued) • Examples of interpersonal injustice in the layoff context • “We’ve gotten rid of the deadwood and rotten apples” • Father and daughter escorted out of the office by security guards on “bring your daughter to work day” • Distinct from procedural justice • Interpersonal justice and procedural justice perceived as unique justice episodes

11. Study of Responses to Interpersonal Injustice • 15% pay cut at 2 plants for a period of 10 weeks • Plant A: • “...It really hurts me to do this, the decision did not come easily…. It hurts me to take away what you’ve worked so hard for” • Stayed for almost an hour answering all employee questions • Plant B: • “...This is an unfortunate fact of life in our business. I’ll answer one or two questions but then I have to leave”

12. Responses to Interpersonal Injustice • Theft & turnover during 10 week period • Plant C (control group): • 3% theft & no turnover • Plant A (sensitive message): • 4% theft & 2% turnover • Plant B (insensitive message): • 8% theft & 25% turnover

13. Conclusion • Employee morale and organizational effectiveness can be enhanced to the extent that decisions are: • Made following rules of procedural justice • Enacted with interpersonal sensitivity