Organizational Justice

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Organizational Justice
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Outline

• Your Stories About Unfair Treatment
• Why Managers Should Care About Fairness
• Types of Fair Treatment
• Outcomes of Fairness
• Why Fair Treatment Matters to People
• What You Can Do as a Manager

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Discussion Question

• Have you ever been treated unfairly at work
  and/or witnessed a co-worker being treated
  unfairly?
• Take a couple of minutes and jot down a story
  from your own experience.
• Also, write down a few suggestions for how the
  situation could have been resolved in a more
  appropriate manner.

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Class Model
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Discussion Question

• As a manager, why should you care about whether
  your employees feel fairly treated?
• Practical
• Legal
• Ethical

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Types of Fairness

• Distributive
• Procedural
• Interactional

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Distributive Fairness

• Definition
• The perceived fairness of organizational
  decisions.
• Types of decisions
• Pay
• Performance ratings
• Smoking ban
• Flexible work week

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Quick Pay Fairness Fact

• On Halloween 2004, Latrell Sprewell, who was in
  the final season of a 62-million, five-year deal
  he signed with the Knicks, said he was insulted
  by Minnesota' s offer of a contract extension
  that was reportedly worth between 27 million and
  30 million for three seasons. His exact quote
• "I've got my family to feed"

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Discussion Question

• How do you determine if your pay is fair?

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Discussion Question

• Mary works at Bank of America as a teller and
  make 36,000 per year. She makes more than the
  other 5 tellers in her department who average
  32,000 in annual salary. Bob works at H R
  Block as an accountant and makes 110,000 per
  year. He is the lowest paid of the five members
  of his department who average 118,000 in annual
  salary. Who is most likely to report higher pay
  satisfaction, Mary or Bob?

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Employee Judgments About Pay Fairness
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Quick Comic
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Distributive Fairness Rules

• Equity
• The more you contribute the more you receive.
• Equality
• All employees are given the same outcome
  regardless of their input.
• Need
• The employees who need an outcome the most
  receive more.

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Procedural Fairness

• Definition
• The perceived fairness of the procedures used to
  make decisions.
• Types of procedures
• Method for hiring new employees
• Method for getting promoted
• Ability to provide your input before decisions
  that will affect you are made

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Discussion Questions

• Do fair procedures at work really matter or are
  people just focused on whether they get the
  outcome they want?
• When do you think fair procedures will matter the
  mostafter a positive outcome or a negative
  outcome?

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Procedural Unfairness in the News
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Discussion Question

• What would make you think a procedure is unfair?

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Procedural Fairness Rules

• Voice
• Consistency
• Bias suppression
• Ethicality
• Correctability
• Accuracy
• Representativeness

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Interactional Fairness

• Definition
• The perceived fairness of interpersonal
  interactions at work.
• Types of interactions
• Conversation with manager
• E-mail from top management
• Performance appraisal feedback

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Quick YouTube Example

• http//www.youtube.com/watch?vJ8OXgAK_rZU

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Interactional Fairness Rules

• Interpersonal treatment
• Treating people respectfully
• Avoiding improper comments
• Explanations
• Providing adequate justifications
• Being honest

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Discussion Question

• Why does fairness matter to employees?
• Self-interest
• Control/Certainty
• Belonging
• Self-esteem
• Moral

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Outcomes of Fairness

• Commitment
• Withdrawal behaviors
• Absenteeism
• Turnover
• OCB
• Performance
• Counterproductive work behaviors

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Discussion Question

• Given the variety of positive outcomes associated
  with employees fairness perceptions, according
  to Brockner (2006) why is it so hard to be fair?

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Discussion Question

• Can managers be trained to be more fair or are
  you simply a fair person or not?
• What types of things can you do as a manger to
  improve your employees perceptions of fairness?

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Quick Summary

• Fairness in the workplace matters for practical,
  legal, and ethical reasons
• There are multiple types of fairness that are
  important
• Treating employees fairly leads to a number of
  positive outcomes
• Managers play the largest role in determining
  employees fairness perceptionsand there are
  things you can do.