What is perceived to exist when an employee receives rewards that they believe are fair?

Distorting perceptions: altering our perceptions of our own or the referents inputs and outcomes
Ex) justifying the situation by downplaying our own inputs; valuing our outcomes more highly; distorting the other person's inputs; distorting the other person's outcomes

Increase referent's inputs:
Ex) if other person brings more to the situation, then them getting more out of the situation would be fair; if that person can be made to work harder or work more complicated tasks, equity would be achieved

Reduce one's inputs:
Ex) if the lower paid person puts forth less effort, the perceived inequity would be reduced; people who perceive inequity reduce their work performance or quality of their inputs

Increasing one's outcomes:
Ex) legitimate means such as negotiating a pay raise
Ex) stealing to balance the scales

Changing the comparison person

Leaving the situation by quitting

Legal action:
Ex) if the main reason behind the pay gap is gender related, then the person may react to the situation by taking legal action because sex discrimination in pay is illegal in the US

Three main reward problems

1) Failure to produce desired behaviour 2) Product of desired behaviour and undesirable consequences 3) Production of reward dissatisfaction

when employees believe that the rewards they receive are not consistent with the contributions they are making to the organization or when they believe that the reward system is unfair

Three Key Employee Behaviours

Membership behaviour, Task behaviour, Organizational citizenship behaviour

Occurs when employees decide to join and remain with a firm

occurs when employees perform the specific tasks that have been assigned to them

Organizational citizenship behaviour

Occurs when employees voluntarily undertake special behaviours beneficial to the organization that go beyond simple membership and task behaviour

Three Key Employee Attitudes

Job Satisfaction, Work Motivation, Organizational Identification

the attitude one holds towards one's job and work place, either positive or negative

the attitude one holds towards good job performance, either positive or negative

Organizational Identification

has three interrelated elements a sense of shared goals and values with the organization, a sense of membership or belongingness and an intention to remain a member of the organization.

Causes of Reward Dissatisfaction

1) Violation of the psychological contract 2) Perceived inequity 3) Relative deprivation 4) Lack of organizational justice

the perception that overall reward outcomes are fair, which is what equity theory is all about

the perception that the process though which rewards are determined is fair

economic rewards meet employee needs and are considered fair

the perception that the process through which rewards are determined is fair

Satisfaction with supervisors

regards whether supervisors are seen as supportive, helpful, and fair in their treatment of employees

Satisfaction with co-workers

regards the extent to which co-workers are viewed as friendly, sociable, helpful, cooperative, and supportive.

What are the five dimensions of citizenship behavior?

Altruism, General compliance, courtesy, sportsmanship, civic virtue. 

suggests that individuals are motivated by a sense of fairness in rewards distribution (distributive justice)

Relative Deprivation Theory Suggests that employees experience dissatisfaction when:

1) There is a discrepancy between the outcome they want and what they actually receive 2) They see that a comparison " other" receives more than they do 3) Past experience has led them to expect more than they now receive. 4) Expectations for achieving better outcomes are low 5) They feel that they are entitled to more 6) They absolve themselves of personal responsibility for the lack of better outcomes

Content theories of motivation: 

theories that focus on understanding motivation by identifying underlying human needs

Process theories of motivation

theories that focus on understanding motivation by determining the processes through which different people choose different courses action in pursuit of the same needs 

states that the behavior will be repeated if valued outcomes flow from that behavior, or if performing performing the behavior reduces undesirable outcomes

states that motivation is the product of three perceptions. Expectancy: the perceived likelihood that increased effort will lead to increased performance Instumentality: the perceived likelihood that increased performance will lead to rewards Valence: the perceived value of the rewards Motivation= Expectancy X Instrumentality X Valence (if one is 0, motivation will be 0)

People often act without understanding their motives and afterward attempt to attribute motives for their actions. 

Employees will pursue their own interests rather than the interests of their employer unless they are closely monitored or their interests are aligned with the interests of their employer

suggest that above market wages are rational for some firms

What is fairness in reward system?

What is perceived fairness?

Why is fairness important in reward?

What is an overall perception of what is fair in the workplace?