Why Justice Matters In Compensation Decision Making

    Authors

    V. Scarpello;F. F. Jones

    Comments

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    Abbreviated Journal Title

    J. Organ. Behav.

    Keywords

    PROCEDURAL JUSTICE; AGENCY; ORGANIZATION; SATISFACTION; INFORMATION; INCENTIVES; ISSUES; MODELS; COSTS; FIRM; Business; Psychology, Applied; Management

    Abstract

    Using agency theory and the stakeholder fairness concept as the conceptual base, this study confirmed three agency theory hypotheses about differential relationships between four sets of pay procedures and evaluations of pay, supervision and the employing organization. Education and seniority related variables were also found to moderate the relationships between procedural justice perceptions and evaluations of supervision and the employing organization. The study used a stratified random sample of 612 occupationally heterogeneous employees of a large County government in South Eastern United States. Results suggest that agency theory provides a parsimonious explanation for why justice matters in compensation decision making.

    Journal Title

    Journal of Organizational Behavior

    Volume

    17

    Issue/Number

    3

    Publication Date

    1-1-1996

    Document Type

    Article

    Language

    English

    First Page

    285

    Last Page

    299

    WOS Identifier

    WOS:A1996UM85300006

    ISSN

    0894-3796

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