Perceptions and Perceptions and Consequences of Consequences of Organizational InjusticeOrganizational Injustice

Organizational PracticesOrganizational Practices

Performance evaluationPerformance evaluation

Pay cutsPay cuts

Drug testingDrug testing

Smoking bansSmoking bans

LayoffsLayoffs

What Do Employees What Do Employees Consider Fair (Unfair)?Consider Fair (Unfair)?

Distributive justiceDistributive justice• Outcome favorabilityOutcome favorability

Procedural justiceProcedural justice• Perceptions of the methods and procedures Perceptions of the methods and procedures

used in the decision making processused in the decision making process– Appropriate criteria Appropriate criteria – Consistent Consistent – Without personal biasWithout personal bias– Accurate informationAccurate information– VoiceVoice

Reactions to Procedural Reactions to Procedural InjusticeInjustice

Distancing responsesDistancing responses• Commitment declinesCommitment declines• Intention to quit increasesIntention to quit increases

– High cost of turnoverHigh cost of turnover

Reactions to Procedural Reactions to Procedural Injustice Injustice (cont.)(cont.)

Retaliatory responsesRetaliatory responses• Extending lunch & coffee breaksExtending lunch & coffee breaks• Personal work on company timePersonal work on company time• Wasting company materialsWasting company materials• Damaging property or processesDamaging property or processes

Reactions to Procedural Reactions to Procedural Injustice Injustice (continued)(continued)

Organizational citizenship declinesOrganizational citizenship declines• Extra-role behaviors Extra-role behaviors (Doing more than is (Doing more than is

required)required)– Willingness to recruit for the organizationWillingness to recruit for the organization– Willingness to attend organizational eventsWillingness to attend organizational events– ““Pitching in” to help othersPitching in” to help others

Neglect responsesNeglect responses• Work effort declines (quantity & quality)Work effort declines (quantity & quality)

Fair-process EffectFair-process Effect

The more one considers a resource The more one considers a resource allocation process to be fair, the more allocation process to be fair, the more one is accepting of and satisfied with the one is accepting of and satisfied with the decision -- independent of the outcome decision -- independent of the outcome received (favorable or unfavorable)received (favorable or unfavorable)

– People are willing to accept unfavorable People are willing to accept unfavorable outcomes when the allocation procedures are fair outcomes when the allocation procedures are fair

– Reactions are particularly Reactions are particularly negativenegative when when outcomes are outcomes are unfavorableunfavorable and and procedures are procedures are unfairunfair

Performance Appraisal & Performance Appraisal & the Fair-process Effectthe Fair-process Effect

Independent of the amount of the raiseIndependent of the amount of the raise, , employees who perceive that employees who perceive that performance appraisals are conducted performance appraisals are conducted in a in a fair mannerfair manner, report more , report more satisfactionsatisfaction with pay and more with pay and more satisfaction with the appraisal itselfsatisfaction with the appraisal itself

Interpersonal JusticeInterpersonal Justice

Quality of Quality of interpersonal treatmentinterpersonal treatment received during the received during the enactmentenactment of of organizational proceduresorganizational procedures• Demonstrating concern for the needs Demonstrating concern for the needs

and well being of those affectedand well being of those affected– empathyempathy

• Treating those affected with dignity Treating those affected with dignity and respectand respect

• Polite interaction & interpersonal Polite interaction & interpersonal sensitivitysensitivity

Interpersonal Justice Interpersonal Justice (continued)(continued)

Examples of interpersonal injustice in Examples of interpersonal injustice in the layoff contextthe layoff context

– ““We’ve gotten rid of the deadwood and rotten We’ve gotten rid of the deadwood and rotten apples”apples”

– Father and daughter escorted out of the office Father and daughter escorted out of the office by security guards on “bring your daughter to by security guards on “bring your daughter to work day” work day”

Distinct from procedural justiceDistinct from procedural justice• Interpersonal justice and procedural justice Interpersonal justice and procedural justice

perceived as unique justice episodesperceived as unique justice episodes

Study of Responses to Study of Responses to Interpersonal InjusticeInterpersonal Injustice

15% 15% pay cutpay cut at 2 plants for a period of 10 at 2 plants for a period of 10 weeksweeks• Plant A:Plant A:

– ““...It really hurts me to do this, the decision did not ...It really hurts me to do this, the decision did not come easily…. It hurts me to take away what you’ve come easily…. It hurts me to take away what you’ve worked so hard for”worked so hard for”

– Stayed for almost an hour answering all employee Stayed for almost an hour answering all employee questionsquestions

• Plant B:Plant B:– ““...This is an unfortunate fact of life in our business. ...This is an unfortunate fact of life in our business.

I’ll answer one or two questions but then I have to I’ll answer one or two questions but then I have to leave”leave”

Responses to Responses to Interpersonal InjusticeInterpersonal Injustice

Theft & turnover during 10 week Theft & turnover during 10 week periodperiod• Plant C (control group): Plant C (control group):

– 3% theft & no turnover3% theft & no turnover

• Plant A (sensitive message): Plant A (sensitive message): – 4% theft & 2% turnover4% theft & 2% turnover

• Plant B (insensitive message): Plant B (insensitive message): – 8% theft & 25% turnover8% theft & 25% turnover

ConclusionConclusion

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