The Background of Perceived Fairness of Rewards: How Employees Accept Unclearness in Their Rewards

Abstract

The purpose of this paper is to clarify the background of employees' perceived fairness of reward, by focusing on their opinions concerning rewards. For this purpose, an in-depth study of one firm's case was conducted where most employees were unable to understand how their reward is determined in line with the performance-based HRM policy. It was found, however, that in this firm some employees perceived fairness in their reward distribution. They believed that the reward process is inevitably covered, speculated that the reward was determined aptly, and weren't interested in issues concerning rewards. Employees' opinion concerning rewards are formed under the influence not only of factors concerning rewards, but also of factors embedded in employees' experience of daily working lives, such as the perception of fulfillment in work and the trust for their evaluators (their supervisors).