Procedural and interpersonal fairness moderate the relationship between outcome fairness and acceptance of merit pay

European Journal of Work and Organizational Psychology

Volumn 18, Issue 1, 2009, Pages 8-28

  van Dijke, Marius ^a   de Cremer, David ^b   Bos, Arjan E R ^a,c   Schefferlie, Pierre ^a  

^a OPEN UNIVERSITY OF THE NETHERLANDS   (Netherlands)

^b TILBURG UNIVERSITY   (Netherlands)

^c ERASMUS UNIVERSITY ROTTERDAM   (Netherlands)

Author keywords

Distributive justice; Interpersonal fairness; Justice; Merit pay; Outcome fairness; Pay for performance; Procedural fairness

Indexed keywords

EID: 61649101742     PISSN: 1359432X     EISSN: 14640643     Source Type: Journal    
DOI: 10.1080/13594320701856699     Document Type: Article

References (56)

1. Adams, J. S. (1965) Inequity in social exchange. Advances in experimental social psychology, 2, pp. 267-299. Academic Press, New York
2. Aiken, S. and West, S. G. (1991) Multiple regression: Testing and interpreting interactions, Sage, New York
3. Arbuckle, J. L. (1997) AMOS user's guide (Ver. 3.6), Smallwaters Corporation, Chicago
4. Baron, J. M. and Kreps, D. M. (1999) Strategic human recourses: Frameworks for general managers, Wiley, Chichester, UK
5. Bies, R. J. and Moag, J. F. (1986) Interactional justice: Communication criteria of fairness. Research on negotiations in organizations, 1, pp. 43-55. JAI Press, Greenwich, CT
6. Blader, S. L. and Tyler, T. R. (2003) A four-component model of procedural justice: Defining the meaning of a "fair" process. Personality and Social Psychology Bulletin, 29, pp. 747-758.
7. Borman, W. C. and Motowidlo, S. J. (1993) Expanding the criterion domain to include elements of contextual performance. Personnel selection in organizations, pp. 71-98. Jossey-Bass, San Francisco
8. Brockner, J., Heuer, L., Magner, N., Folger, R., Umphress, E. van den Bos, K. et al. (2003) High procedural fairness heightens the effect of outcome favorability on self-evaluations: An attributional analysis. Organizational Behavior and Human Decision Processes, 91, pp. 51-68.
9. Brockner, J. and Wiesenfeld, B. M. (1996) An integrative framework for explaining reactions to decisions: Interactive effects of outcome and procedures. Psychological Bulletin, 120, pp. 189-208.
10. Brockner, J. and Wiesenfeld, B. M. (2003) How, when and why does outcome favorability interact with procedural fairness. Handbook of organizational justice: Fundamental questions about fairness in the workplace, pp. 525-553. Lawrence Erlbaum Associates, Inc., Hillsdale, NJ
11. Brown, M. (2001) Merit pay preferences among public sector employees. Human Resource Management Journal, 11, pp. 38-54.
12. Bullock, R. J. and Tubbs, M. E. (1990) A case meta-analysis of gainsharing plans as organization development interventions. Journal of Applied Behavioral Science, 26, pp. 383-404.
13. Campbell, D. J., Campbell, K. M. and Ho-Beng, C. (1998) Merit pay, performance appraisal, and individual motivation: An analysis and alternative. Human Resource Management, 37, pp. 131-147.
14. Cohen-Charash, Y. and Spector, P. E. (2001) The role of justice in organizations: A meta-analysis. Organizational Behavior and Human Decision Processes, 86, pp. 278-321.
15. Colquitt, J. A. (2001) On the dimensionality of organizational justice: A construct validation of a measure. Journal of Applied Psychology, 86, pp. 386-400.
16. Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H. and Yee, K. (2001) Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86, pp. 425-445.
17. Cropanzano, R., Byrne, Z. S., Bobocel, D. R. and Rupp, D. E. (2001) Moral virtues, fairness heuristics, social entities, and other denizens of organizational justice. Journal of Vocational Behavior, 58, pp. 164-209.
18. Cummings, R. C. (1982) Leader - member relations as a moderator of the effects of leader behaviour and attitude. Personnel Psychology, 25, pp. 655-660.
19. Dutch Central Bureau for Statistics (2002) Loonstructuuronderzoek 2002 [Pay structure study 2002]
20. Dutch Knowledge Centre for Government Personnel (2003) Kerngegevens overheidspersoneel [Core data government personnel]
21. Eskew, D. and Heneman, R. L. (1996) A survey of merit pay plan effectiveness: End of the line for merit pay or hope for improvement?. Human Resource Planning, 19, pp. 12-19.
22. Evans, M. G. (1985) A Monte Carlo study of the effects of correlated method variance in moderated multiple regression analysis. Organizational Behavior and Human Decision Processes, 36, pp. 305-323.
23. Fisher, C. D., Schoenfeldt, L. F. and Shaw, J. B. (1990) Human resource management, Houghton Mifflin, Boston
24. Folger, R. and Cropanzano, R. (1998) Organizational justice and human resource management, Sage, Thousand Oaks, CA
25. Folger, R. and Konovsky, M. A. (1989) Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32, pp. 115-130.
26. Fong, S. C. L. and Shaffer, M. A. (2003) The dimensionality and determinants of pay satisfaction: A cross-cultural investigation of a group incentive plan. International Journal of Human Resource Management, 14, pp. 559-580.
27. Fox, J. (1991) Regression diagnostics, Sage, Newbury Park, CA, London, and New Delhi, India
28. Garland, H. (1973) The effects of piece-rate underpayment and overpayment on job performance: A test of equity theory with a new induction procedure. Journal of Applied Social Psychology, 3, pp. 325-334.
29. Greenberg, J. (1993) The social side of fairness: Interpersonal and informational classes of organizational justice. Justice in the workplace: Approaching fairness in human resource management, pp. 79-103. Lawrence Erlbaum Associates, Inc., Hillsdale, NJ
30. Greenberg, J. (2003) Creating unfairness by mandating fair procedures: The hidden hazards of a pay-for-performance plan. Human Resource Management Review, 13, pp. 41-57.
31. Greenberg, J. (2006) Losing sleep over organizational injustice: Attenuating insomniac reactions to underpayment inequity with supervisory training in interactional justice. Journal of Applied Psychology, 91, pp. 58-69.
32. Heatherton, T. F. and Polivy, J. (1991) Development and validation of a scale for measuring state self-esteem. Journal of Personality and Social Psychology, 60, pp. 895-910.
33. Heneman, R. L., Greenberger, D. B. and Strasser, S. (1988) The relationship between pay for performance perceptions and pay satisfaction. Personnel Psychology, 41, pp. 745-759.
34. Kuhn, K. M. and Yockey, M. D. (2002) Variable pay as a risky choice: Determinants of the relative attractiveness of incentive plans. Organizational Behavior and Human Decision Processes, 90, pp. 323-341.
35. Lawler, E. E. (1974) Pay and organizational effectiveness: A psychological view, McGraw Hill, New York
36. Leventhal, G. S. (1980) What should be done with equity theory? New approaches to the study of fairness in social relationships. Social exchange: Advances in theory and research, pp. 27-55. Plenum, New York
37. Leventhal, G. S., Allen, J. and Kemelgor, B. (1969) Reducing inequity by reallocating rewards. Psychonomic Science, 14, pp. 295-296.
38. Leventhal, G. S., Weiss, T. and Long, G. (1969) Equity, reciprocity, and reallocating rewards in the dyad. Journal of Personality and Social Psychology, 13, pp. 300-305.
39. Mark, M. M. and Folger, R. (1984) Responses to relative deprivation: A conceptual framework. Review of personality and social psychology, 5, pp. 192-218. Sage, Beverly Hills, CA
40. McClelland, G. H. and Judd, C. M. (1993) Statistical difficulties of detecting interactions and moderator effects. Psychological Bulletin, 114, pp. 376-390.
41. Morgeson, F. P., Reider, M. H. and Campion, M. A. (2005) Selecting individuals in team settings: The importance of social skills, personality characteristics, and teamwork knowledge. Personnel Psychology, 58, pp. 583-611.
42. Morrison, E. W. (1994) Role definitions and organizational citizenship behavior: The importance of the employee's perspective. Academy of Management Journal, 37, pp. 1543-1567.
43. Mulaik, S. A., James, L. R., van Alstein, J., Bennett, N., Lind, S. and Stilwell, C. D. (1989) Evaluation of goodness-of-fit indices for structural equation models. Psychological Bulletin, 105, pp. 430-445.
44. Organ, D. W. (1994) Organizational citizenship behavior and the good soldier. Personnel selection and classification, pp. 53-67. Lawrence Erlbaum Associates, Inc., Hillsdale, NJ
45. Patton, K. R. and Daley, D. M. (1998) Gainsharing in Zebulon: What do workers want?. Public Personnel Management, 27, pp. 117-132.
46. Ployhart, R. E., Ryan, A. M. and Bennett, M. (1999) Explanations for selection decisions: Applicants' reactions to informational and sensitivity features of explanations. Journal of Applied Psychology, 84, pp. 87-106.
47. Scarpello, V. and Jones, F. F. (1996) Why justice matters in compensation decision making. Journal of Organizational Behavior, 17, pp. 285-299.
48. Skitka, L. J. (2003) Of different minds: An accessible identity model of justice reasoning. Personality and Social Psychology Review, 7, pp. 286-297.
49. St-Onge, S. (2000) Variable influencing the perceived relationship between performance and pay in a merit pay environment. Journal of Business and Psychology, 14, pp. 459-481.
50. Sweeney, P. D. (1990) Distributive justice and pay satisfaction: A field test of an equity theory prediction. Journal of Business and Psychology, 4, pp. 329-341.
51. Thibaut, J. W. and Walker, L. (1975) Procedural justice: A psychological analysis
52. Tremblay, M. B., Sire, B. and Balkin, D. B. (2000) The role of organizational justice in pay and employee benefit satisfaction, and its effects on work attitudes. Group and Organization Management, 25, pp. 269-290.
53. Tremblay, M. B., Sire, D. B. and Pelchat, A. (1998) A study of the determinants and the impact of flexibility on employee benefit satisfaction. Human Relations, 51, pp. 667-688.
54. Van den Bos, K., Lind, E. A., Vermunt, R. and Wilke, H. A. M. (1997) How do I judge my outcome when I do not know the outcome of others? The psychology of the fair process effect. Journal of Personality and Social Psychology, 72, pp. 1034-1046.
55. Vermunt, R., Blaauw, E., van Knippenberg, D. and van Knippenberg, B. (2001) Self-esteem and outcome fairness: Differential importance of procedural and outcome considerations. Journal of Applied Psychology, 86, pp. 621-628.
56. Walster, E., Walster, G. W. and Berscheid, E. (1978) Equity: Theory and research, Allyn & Bacon, Boston and London