The relationships of distributive justice and compensation system fairness to employee attitudes in international joint ventures

Employee perceptions of the fairness of general corporate systems have thus far not received enough attention in the organizational justice literature. To fill this gap, we examined perceptions of the fairness of the compensation systems of international joint ventures in China. It is argued that perceptions of compensation system fairness are positively related to the three distributive justice dimensions, i.e., performance‐based distributive justice, comparative distributive justice relative to foreign expatriates, and comparative distributive justice relative to local colleagues. Perceptions of compensation system fairness are also hypothesized to mediate the relationships between the three distributive justice dimensions and organizational commitment and turnover intention. A survey of 161 Chinese employees in Sino‐foreign joint ventures found a positive relationship between perceptions of distributive justice and perceptions of compensation system fairness. In particular, compensation system fairness was more strongly associated with performance‐based distributive justice than with the other two distributive justice dimensions based on social comparison. The mediating role of compensation system fairness was strongly supported. Copyright © 2007 John Wiley & Sons, Ltd.     

Work performance,affective commitment,and work motivation: the roles of pay administration and pay level

The purpose of this study was to investigate employee attitudes and behaviors among knowledge workers under different forms of pay administration and pay levels. To examine these issues, I collected data from two business units in a large Norwegian multinational company with pay plans combining individual and collective performance and behaviors as the foundations for individual bonuses; one with two collective components (profit and behavior of the unit and the organization) and one with an individual component in addition to the two collective components. After controlling for organizational tenure, education, gender, perceived unit support, perceptions of distributive and procedural justice, and type of pay plan, the key findings are that base pay level, but not bonus level, was positively related to both self‐reported work performance and affective unit commitment, and that these relationships were partly mediated by intrinsic motivation. Furthermore, moderation analyses revealed that the relationships between bonus level and the outcome variables were not affected by type of pay plan. Implications and directions for future research on pay in knowledge intensive organizations are discussed. Copyright © 2006 John Wiley & Sons, Ltd.     

Process and outcome: gender differences in the assessment of justice

We studied the importance that women and men place on distributive and procedural justice. The relationship between distributive justice and several organizational outcomes (e.g. commitment, intent to stay) was stronger for men than women. The relationship between procedural justice and those same outcomes, however, was stronger among women than men. The relation of our findings in justice perceptions are related to other research on gender differences in interpersonal styles and perceptions. Future research ideas are discussed. © 1997 John Wiley & Sons, Ltd.     

Organizational level as a moderator of the relationship between justice perceptions and work‐related reactions

In this study, we examined the role of organizational level as a moderator of the relationships of procedural and distributive justice with seven employee attitudes and behaviors. Based on social identity and resource allocation theories, we suggested an allocational model of authority in organizations. We posited that lower rank encourages a more process‐oriented perspective that emphasizes procedural concerns while higher rank imbues a more result‐oriented perspective that emphasizes distributive outcomes. We considered the cultural context that characterized work relationships in our sample of respondents from a Chinese state‐owned enterprise. Significant sets of interactions supported the predicted relationships of procedural justice with three outcomes at lower levels and distributive justice with four outcomes at higher levels. Implications and extensions of these findings are considered. Copyright © 2006 John Wiley & Sons, Ltd.     

Is it pay levels or pay raises that matter to fairness and turnover?

Two studies examined the relationship between actual pay and distributive and procedural justice, and the extent to which these perceptions were related to two important pay satisfaction dimensions, pay level and pay raise, and ultimately, impacted turnover. For each study the measures of pay and justice variables were obtained on a cross‐sectional basis, while the measure of turnover was necessarily lagged. Results showed that distributive justice mediated the relationship between pay and both pay level satisfaction and pay raise satisfaction. Furthermore, distributive justice was a stronger predictor of pay level satisfaction; whereas procedural justice was a stronger predictor of pay raise satisfaction. Procedural justice also played a moderating role in Study 2. The study also showed that only pay raise satisfaction was significantly and negatively related to turnover in Study 1, and to turnover via turnover intention in Study 2. Results support the value of considering pay satisfaction as multidimensional when evaluating justice issues in a compensation context. Copyright © 2005 John Wiley & Sons, Ltd.     

Episodic envy and counterproductive work behaviors: Is more justice always good?

The authors examined how perceived event‐specific procedural and distributive justice about own and envied others' outcomes interacts with episodic envy to predict counterproductive work behaviors. Our results were consistent with the attribution model of justice, finding that episodic envy significantly predicted counterproductive work behaviors aimed at envied others in the workplace and that this relationship was more pronounced when perceptions of procedural, but not distributive, justice about own or envied others' outcomes were high rather than low. We tested a moderated‐mediation model in which self‐attributions for the outcome mediated the effect of episodic envy on counterproductive work behaviors and that the effect of envy was stronger when perceptions of own or others' procedural justice were high rather than low. This research contributes to the literature on envy processes in the workplace and is the first to use a specific emotion, envy, as a proxy for a negative outcome in a demonstration of the attribution model of justice. Copyright © 2013 John Wiley & Sons, Ltd.     

Distributive and procedural justice as predictors of employee outcomes in Hong Kong

This study examines the extent to which employee judgments about distributive and procedural justice predict job satisfaction, intent to stay and evaluation of supervision in Hong Kong. Distributive and procedural justice each plays a role in determining work outcomes of Hong Kong employees. However, some effects of these justice variables differ from results of previous studies in the United States (U.S.). First, in previous U.S. studies, procedural justice moderates the relationship of distributive justice with evaluation of supervision, but not with job satisfaction or intent to stay. For Hong Kong employees, procedural justice moderates the effects of distributive justice on job satisfaction and intent to stay, but not on evaluation of supervision. Second, previous U.S. studies have shown that procedural justice has a larger effect on work outcomes for women, while distributive justice has larger effects on outcomes for men. For Hong Kong employees, the effects of procedural and distributive justice are about the same for men and women. Differences in the effects of distributive and procedural justice between Hong Kong and the U.S. may reflect cultural dimensions, such as collectivism/individualism and power distance, as well as the relative availability of rewards for women in the work force. Practical implications and future research directions are discussed. Copyright © 2000 John Wiley & Sons, Ltd.     

Becoming an undercover police officer: a note on fairness perceptions,behavior, and attitudes

Reactions to an undercover police officer selection system were analyzed for 271 officers. Officers given undercover assignments had higher procedural justice perceptions and outcome satisfaction than others awaiting assignment in a qualified applicant pool. Procedural and distributive justice perceptions were subsequently related to the undercover officer's job performance, job satisfaction, and organizational commitment. Copyright © 2003 John Wiley & Sons, Ltd.     

Emotional exhaustion and job performance: The moderating roles of distributive justice and positive affect

In a field study among 241 shop assistants and their 59 supervisors in fashion chain stores in Mainland China and Hong Kong, we found a negative relationship between emotional exhaustion and four indicators of job performance (overall performance, emotional display, OCB‐O, and OCB‐I) when employees perceived high levels of distributive justice in the exchange relationship with the organization, whereas emotional exhaustion was unrelated to any of these performance types when employees perceived low levels of distributive justice. In addition, this negative two‐way interaction effect of emotional exhaustion by distributive justice on job performance was buffered when employees were high on positive affect and intensified when they were low on positive affect. We used the conservation of resources (COR) theory, the attribution model of justice, and the broaden‐and‐build theory of positive emotions to clarify and discuss the moderating roles of distributive justice and positive affect in the relationship between emotional exhaustion and job performance. Copyright © 2009 John Wiley & Sons, Ltd.     

Collectivism as a moderator of responses to organizational justice: implications for leader‐member exchange and ingratiation

Previous research indicates that employee justice perceptions are positively related to leader‐member exchange (LMX). We examined collectivism as a moderator of this relationship. We hypothesized that because maintaining harmonious relationships is important for collectivists, and because protecting their individual identities is not a priority, there is a weaker relationship between interactional and distributive justice perceptions and LMX for individuals high in collectivism. Instead of engaging in behaviors that would lower the quality of their LMX relationships, collectivists are more likely to use soft influence tactics, specifically ingratiation, as a response to perceived unfairness. Thus, we expected a stronger relationship between justice perceptions and ingratiation for those high in collectivism. In a sample of textile‐manufacturing employees in Istanbul, Turkey, we found that interactional justice had a weaker positive relationship with LMX for individuals high in collectivism. In addition, distributive justice had a nonsignificant relationship with LMX for those high in collectivism, whereas there was a positive relationship for those low in collectivism. Finally, for collectivists there was a negative relationship between interactional justice perceptions and frequency of ingratiation, suggesting that collectivists may use more subtle mechanisms when responding to interactional unfairness. Copyright © 2006 John Wiley & Sons, Ltd.     

The mediating role of overall fairness and the moderating role of trust certainty in justice–criteria relationships: the formation and use of fairness heuristics in the workplace

Theory suggests that perceptions of overall fairness play an important role in the justice judgment process, yet overall fairness is insufficiently studied. We derived hypotheses from fairness heuristic theory, which proposes that perceptions of overall fairness are influenced by different types of justice, are more proximal predictors of responses than specific justice types, and are used to infer trust when trust certainty is low. Results from Study 1 (N = 1340) showed that employees' perceptions of overall fairness in relation to a senior management team mediated the relationships between specific types of justice and employee outcomes (e.g., affective commitment). In Study 2 (N = 881), these mediated effects were replicated and trust certainty moderated the effect of overall fairness on trust as hypothesized. Study 2 also showed that, relative to procedural and informational justice, distributive and interpersonal justice had stronger effects on overall fairness. To explore how the organizational context may have influenced these findings, we performed qualitative analyses in Study 3 (N = 268). Results suggested that, consistent with the quantitative findings from Study 2, some types of justice were more salient than others. We discuss the implications of our findings for theory, research, and practice. Copyright © 2008 John Wiley & Sons, Ltd.     

Justice and job engagement: The role of senior management trust

We examined whether job engagement mediated the effects of organizational justice dimensions on work behaviors and attitudes. Considering distributive and procedural justice from a motivational perspective, we proposed that job engagement would mediate these two dimensions' relations with the work outcomes of task performance, organizational citizenship behavior, and job satisfaction. We also expected this mediation effect would be magnified when senior management trust (SMT) was high. Our results showed that the simple mediation model was supported only for distributive justice. Alternatively, the indirect effect of procedural justice on work outcomes through job engagement was significant only when SMT was high. Implications of our findings and areas for future research are discussed. Copyright © 2016 John Wiley & Sons, Ltd.     

Trust as a mediator of the relationship between organizational justice and work outcomes: test of a social exchange model

Data obtained from full‐time employees of a public sector organization in India were used to test a social exchange model of employee work attitudes and behaviors. LISREL results revealed that whereas the three organizational justice dimensions (distributive, procedural and interactional) were related to trust in organization only interactional justice was related to trust in supervisor. The results further revealed that relative to the hypothesized fully mediated model a partially mediated model better fitted the data. Trust in organization partially mediated the relationship between distributive and procedural justice and the work attitudes of job satisfaction, turnover intentions, and organizational commitment but fully mediated the relationship between interactional justice and these work attitudes. In contrast, trust in supervisor fully mediated the relationship between interactional justice and the work behaviors of task performance and the individually‐ and organizationally‐oriented dimensions of citizenship behavior. Copyright © 2002 John Wiley & Sons, Ltd.     

Relationship between organizational justice and employee work outcomes: a cross‐national study

This study examined the influence of organizational justice perceptions on employee work outcome relationships as moderated by individual differences that are influenced by societal culture. Power distance, but not country or individualism, moderated the relationships between perceived justice and satisfaction, performance, and absenteeism. The effects of perceived justice on these outcomes were stronger among individuals scoring lower on power distance index, and most of these study participants were in the U.S. (versus Hong Kong) sample. Limitations of the study and the implications of the findings for managing cross‐culturally are discussed. Copyright © 2001 John Wiley & Sons, Ltd.     

Discriminating among organizational politics,justice, and support

The discriminant validity of perceptions of organizational politics, organizational support, and procedural and distributive justice was examined as the distinctions between these variables have been blurred in past research. Results from a sample of 418 full‐time employees provided evidence of discriminant validity for these variables. First, structural equation modelling was used to isolate the best structural representation of these four variables. Then, six theoretically relevant predictors (i.e., leader–member exchange, centralization, formalization, co‐worker cooperation, role conflict, and locus of control) were examined in an effort to provide further conceptual separation. Five of the six antecedents distinguished among politics, justice, and support. Suggestions for additional research that can shed light on the distinctions and similarities of these variables are offered based on the results of this study. Copyright © 2001 John Wiley & Sons, Ltd.     

Getting even with one's supervisor and one's organization: relationships among types of injustice,desires for revenge,and counterproductive work behaviors

I tested hypotheses derived from the agent–system model of justice specifying that, among the different types of justice, interpersonal and informational justice explain the most unique variance in counterproductive work behavior (CWB) directed toward one's supervisor, and procedural justice explains the most unique variance in CWB directed toward one's organization. I also tested whether individuals' desires for revenge against one's supervisor and one's organization mediate certain justice–CWB relationships. Results (N = 424) provided considerable support for the study hypotheses, showing that employees tend to direct their CWB toward the source of perceived mistreatment, and that desires for revenge explain part, but not all, of the relationships between some types of injustice and CWB. Implications for theory, research, and practice are discussed. Copyright © 2008 John Wiley & Sons, Ltd.     

Good relationships at work: The effects of Leader–Member Exchange and Team–Member Exchange on psychological empowerment,emotional exhaustion,and depression

Emotional exhaustion and depression pose a threat to employees' psychological health. Social relationships at work are important potential buffers against these threats, but the corresponding psychological processes are still unclear. We propose that the subjective experience of high‐quality relationships with supervisors (i.e., Leader–Member Exchange [LMX]) is one of the protective factors against psychological health issues at work and that this effect is mediated by psychological empowerment. We tested these assumptions with two studies (one cross‐sectional and one time lagged) on diverse samples of employees from different organizations. The first study employed emotional exhaustion as the outcome measure; the second used depression. Results from both studies support the proposed process by showing that LMX positively affects empowerment, which negatively affects emotional exhaustion (Study 1) and depression (Study 2). Additionally, Study 2 also showed that Team–Member Exchange is as important as LMX for preventing psychological health issues among employees. Copyright © 2015 John Wiley & Sons, Ltd.     

An appraisal perspective of justice,structure, and job control as antecedents of psychological distress

Through the application of cognitive appraisal theory, this study unifies the emergent themes of studying justice in relation to organizational context, as well as justice in relation to employee feelings of psychological distress. A sample of 677 employees from 72 organizations was used to test hypotheses related to justice, job control, mechanistic structure, and employee feelings of anxiety and depression. We found procedural justice, within a primary appraisal role, to be a highly effective tool for minimizing psychological distress. In combination with both distributive justice as well as a mechanistic structure, procedural justice can help to minimize feelings of anxiety and depression, but in different manners for each variable. Further, a strong influence of job control upon both procedural justice and, ultimately, depression and anxiety highlighted its role as a perceived means for avoiding or minimizing the harm of a potential stressor. Copyright © 2007 John Wiley & Sons, Ltd.     

Deciding on equity or parity: a test of situational,cultural, and individual factors

Previous cross-cultural research in distributive justice has neglected the situational and individual determinants of allocation preferences. This study incorporated the cultural value of Individualism–Collectivism (I–C), situational demands of task interdependence and system goals, and individual achievement motivation to examine their effects on the allocation decisions made by U.S. Americans and Hong Kong Chinese. It was found that the Americans and the Chinese in the study responded to situational demands in a similar fashion, i.e. equity was preferred under circumstances of low interdependence and the productivity goal whereas parity was preferred under circumstances of high interdependence and the solidarity goal. It was also found that in the U.S., I–C had no significant relation with the allocation differential (between the bonus amounts for the highest and the lowest performer), and the achievement motivation interacts with levels of interdependence and with goal priorities; in Hong Kong, both I–C and the achievement motivation related negatively to the allocation differential. Research and managerial implications for international management were discussed. © 1998 John Wiley & Sons, Ltd.     

The dynamics of strike votes: Perceived justice during collective bargaining

Why do workers decide to go on strike or change their mind during a strike? This field study aims to determine to what extent employees' perceptions of justice formed during the collective bargaining process influence their strike vote. Data were collected from a North American university faculty that went on strike 21 months after the expiration of its collective agreement. The results show that perceived justice about collective bargaining is a determinant of the strike vote. The role played by the employer and the union as a source of (in)justice and the importance of the four types of justice perceptions (procedural, distributive, interpersonal, and informational) vary depending on the context of ballots (initiate, continue, or end the strike). This suggests that the reduction of uncertainty leads to the activation of three different mechanisms: judgmental heuristics (salience), social comparison, and cognitive dissonance. The results also suggest that employees attempt to be as rational as possible when they decide to go on strike. Nevertheless, the decision to join strikers and to continue the strike is partly based on an emotional process: employees use the strike to punish the employer. Copyright © 2012 John Wiley & Sons, Ltd.