Predicting pay-related justice perceptions: The importance of pay-related factors and leadership characteristics
2013 (English)In: Forum för arbetslivsforskning (FALF) - Changes in Working Life: Individual, Organizational, and Methodological Perspectives, Stockholm, Sweden, June 17-19, 2013, 2013Conference paper, Poster (Other academic)
Individualized pay has gradually become a more common feature of management practices in private as well as public sector organizations. This partly originates from a belief that contingent rewards may generate stronger work motivation and improve organizational effectiveness. The literature however suggests that such effects may depend on how the employees perceive the pay-setting process, in terms of factors such as fair treatment from the employer, understanding of the criteria for pay raises, and opportunities to influence the procedures. Although the concept of organizational justice has been applied also to specific facets, such as pay, relatively few studies have investigated how pay-related justice perceptions may be formed. The aim of the present study is to contribute to the understanding of the determinants of pay justice, by focusing on a range of pay-related factors (e.g., pay level, participation in performance reviews, knowledge about pay criteria) and leadership characteristics (e.g., feedback, goal clarity). Pay-related fairness is conceptualized in terms of distributive, procedural, informational, and interpersonal justice. An on-line survey was distributed among school teachers in a large city, with a response rate of around 45 percent. Multiple regression analysis was used to investigate the relative importance of pay-related factors and leadership characteristics for perceptions of pay justice. Although the cross-sectional nature of the data prohibits causal inferences, preliminary results indicate that both a range of pay-related factors and leadership characteristics may be important for employees’ perceptions of pay justice. By contributing to the understanding of how pay justice perceptions are formed, the study also has important implications for management practices in connection with the implementation of pay-for-performance systems.
Place, publisher, year, edition, pages
individualized pay, justice, work motivation
Research subject Psychology
IdentifiersURN: urn:nbn:se:su:diva-99415OAI: oai:DiVA.org:su-99415DiVA: diva2:686912
Forum för arbetslivsforskning (FALF) - Changes in Working Life: Individual, Organizational, and Methodological Perspectives, Stockholm, Sweden, June 17-19, 2013