Transcript Examining Layoff Survivors Changes in Targets of

Perceptions and Consequences
of Organizational Injustice
Organizational Practices

Performance evaluation

Pay cuts

Drug testing

Smoking bans

Layoffs
What Do Employees Consider
Fair (Unfair)?

Distributive justice
• Outcome favorability

Procedural justice
• Perceptions of the methods and procedures used in
the decision making process
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–
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Appropriate criteria
Consistent
Without personal bias
Accurate information
Voice
Reactions to Procedural
Injustice
 Distancing responses
• Commitment declines
• Intention to quit increases
– High cost of turnover
Reactions to Procedural
Injustice (cont.)
 Retaliatory responses
•
•
•
•
Extending lunch & coffee breaks
Personal work on company time
Wasting company materials
Damaging property or processes
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)
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
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
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
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
Study of Responses to
Interpersonal Injustice

15% pay cut at 2 plants for a period of 10 weeks
• Plant A:
– “...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:
– “...This is an unfortunate fact of life in our business. I’ll answer
one or two questions but then I have to leave”
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
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