1. Perceptions and Consequences of Organizational Injustice

2. Organizational Practices
Performance evaluation
Pay cuts
Drug testing
Smoking bans
Layoffs
Allocations of scarce resources often raise issues of fairness
Unfavorable outcomes: With a limited pool of resources, not everyone can receive a favorable outcome
did not receive promotion
my raise was so small
our budget is less this year than last year
My performance appraisal was not favorable
Layoffs cut across diverse industries and locations in the US
Understanding how layoffs impact those who remain is critical to the future success of the organization (Clear that those who were not negatively affected are concerned with fairness issues)

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
DJ: Student example here -- I am shocked and disappointed that I received an F. (unfavorable allocation)
legal system -- what makes a verdict fair?
open-ended interviews and surveys people were asked what makes the recruiting process fair- what makes budget allocations fair, when is organizational decision making fair?
These surveys identified attributes of what has been termed procedural justice.
Justice research has examined responses to unfavorable outcomes and more recently, the procedures used to arrive at outcomes.
The POTENTIAL to feel unfairly unfairly treated increases when one receives an unfavorable outcome (distributive justice focuses on outcomes received)
People also evaluate the ATTRIBUTES OF the decision-making process or procedures used to arrive at such decisions.
To the extent these attributes are perceived to be part of a decision making process, the more employees are likely to perceive the procedures as fair.
Federal express as an example of procedural justice in a grievance system

4. Reactions to Procedural Injustice
Distancing responses
Commitment declines
Intention to quit increases
High cost of turnover
Responses to injustice have recently been studied in a variety of field studies pertaining to important organizational decisions
survivors' responses to layoffs
performance appraisals
In general reference to decision-making
Group-value model:
Why does fairness matter? It matters because it sends a signal to us as to whether or not we are valued and respected members of the group or organization.
We do not want to be members of groups that do not treat us fairly.

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: (sensitive message)
“...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: (insensitive message)
“...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