ADM 2336 Lecture Notes - Lecture 7: Equity Theory
4 Oct 2017
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Justice- the perceived fairness of an authority"s decision making. Reflects the perceived fairness of decision making outcomes, allocated using proper norms: equality is the norm in most businesses, related to the equity theory of management (2) procedural justice. Fostered when authorities adhere to rules of fair process: voice- allow employees to express views, correctability- employees can request appeals. Making procedures neutral and objective: consistency, bias suppression, representativeness, and accuracy rules. Yes, people care about more than just outcomes. When you do poorly, outcome not in your favour. Not as important when you do well: ex. Perceived fairness of the treatment received by employees from authorities. Fostered by the following: respect rule- authorities treat employees in dignified/sincere manner, propriety rule- authorities refrain from improper/offensive remarks (4) informational justice. Increases when: justification rule- procedures/outcomes are explained, truthfulness rule- communications are honest and candid. Trust- the willingness to be vulnerable to a trustee based on positive expectations about the authority"s actions and intentions.
