The importance of justice perceptions on pay effectiveness: a two-year study of a skill-based pay plan

Lee, Cynthia; Law, Kenneth S.; Bobko, Philip

doi:10.1016/s0149-2063(99)00029-x

Cited by 16 publications

(8 citation statements)

References 41 publications

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“…Explaining personnel decisions to employees increases perceptions of fairness (Bies & Shapiro, 1988;Brockner, DeWitt, Grover, & Reed, 1990;DeCenzo & Robbins, 1994;Dulebohn & Martocchio, 1998;Folger & Bies, 1989;Gopinath & Becker, 2000;Greenberg, 1990bGreenberg, , 1993Greenberg, , 1996Lee, Law, & Bobko, 1999;Schaubroeck, May, & Brown, 1994). Although we were unable to locate any empirical evidence examining the relationship between communication and fairness associated with a reduction in benefit-related compensation, several studies show that explanations of existing personnel decisions lead to improved fairness perceptions (Bies & Shapiro, 1987Werner & Ones, 2000) and benefits satisfaction (Rabin, 1994;Tremblay et al, 1998;Williams, 1995).…”

Section: Distributive and Procedural Justicementioning

confidence: 96%

Employee reactions to a reduction in benefit-related compensation: A fairness perspective.

Shafiro¹,

Hanson²,

Truxillo³

et al. 2007

The Psychologist-Manager Journal

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Many organizations are shifting the financial burden of increased costs of medical benefits to employees. The effects of the changes in benefits on employee outcomes are not fully understood. The present study examined how employees reacted to a reduction in benefit-related compensation and how potential negative reactions can be minimized. Data from 229 employees showed that preference for how medical benefits should be distributed (equality versus need-based distributions) as well as past utilization of benefits were related to perceptions of distributive organizational justice. Perceptions of procedural organizational justice were predicted by employee perceptions of how well the benefit changes were communicated and by past utilization of benefits. Providing additional information to employees about changes in benefits, and providing employee voice, increased employee perceptions of informational justice.The provision of employee benefits is one of the major costs of human resource management and administration. Given the significant increases in health benefit Correspondence should be sent to Margarita V.

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Section: Distributive and Procedural Justicementioning

confidence: 96%

Employee reactions to a reduction in benefit-related compensation: A fairness perspective.

Shafiro¹,

Hanson²,

Truxillo³

et al. 2007

The Psychologist-Manager Journal

View full text Add to dashboard Cite

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“…Organizational commitment is defined as a strong desire to maintain employment in the organization (Mowday, Steers, and Porter 1979); loyalty to the organization; and mobilization of all employees in the development of its goals, purposes, and infrastructure (Lee, Law, and Bobko 1999). Satisfied employees and employees with high self-esteem are more likely to be attached to the organization (Pierce et al 1989).…”

Section: Organizational Commitmentmentioning

confidence: 99%

Internal Relationship Marketing: Korean Casino Employees’ Job Satisfaction and Organizational Commitment

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Lee

Abbott

2010

Cornell Hospitality Quarterly

132

119

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This study examined the relationship between the following key variables: internal service quality, self-efficacy, job satisfaction, self-esteem, and organizational commitment. The study sought to identify ways to improve casino employees' job satisfaction, further enhance employees' organizational commitment, and possibly decrease job turnover intention. A total of 328 Korean casino dealers responded to a survey questionnaire developed to test the study model. Results showed that all internal service quality dimensions (i.e., training, communication, and perceived benefits) positively influenced job satisfaction, as did self-efficacy. Job satisfaction subsequently and concurrently influenced self-esteem and organizational commitment. Based on study findings, management can glean practical implications for enhancing the quality of effective communication strategies, career development programs, and empowerment.

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“…Paying people to learn many skills encourages them to expand their capacities (Dierdorff and Surface, 2008;Gupta, 1997;Gupta and Shaw, 2001;Jenkins and Gupta, 1985;Lawler, 1990;Lee et al, 1999;Murray and Gerhart, 1998; Tosi and Tosi, 1986). When each employee can perform many different jobs, labor-related workflow irregularities can be resolved quickly and easily.…”

Section: Pay Plans and Workforce Flexibilitymentioning

confidence: 99%

A comparative examination of traditional and skill‐based pay plans

Mitra

Gupta

Shaw

2011

Journal of Managerial Psychology

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -The purpose of this paper is to make a comparative assessment of the relationship between types of pay plans and several workforce-level outcomes in 214 organizations. The plans include pay that is skill-based, job-based, and market-based. The types of workforce-level outcomes include workforce flexibility, attitudes, membership behaviors, and productivity. The paper also assesses the relationship between the success of pay plans and workforce productivity/membership behaviors. Design/methodology/approach -Survey data from 214 organizations are used to test the hypothesized relationships using hierarchical regression analysis and partial least square techniques. Findings -Results support a significant and positive relationship between skill-based pay plans, workforce flexibility, and workforce attitudes. Skill-based pay plans, when compared with market-based pay plans, are found to positively relate to workforce membership behaviors, and workforce attitudes mediate this relationship. Similarly, workforce flexibility mediates the positive relationship between skill-based plans and workforce productivity. The success of skill-based plans depends on significant improvements in workforce productivity and membership behaviors. The fit between the pay plan and the facility's climate/culture moderates the relationship between workforce productivity and the pay plan's success. Practical implications -The results indicate that skill-based pay plans are superior for achieving several organizational and employee outcomes. The authors discuss the implications of these results for research and practice. Originality/value -Limited comparative empirical evidence exists on the effects of different types of pay systems on organizational outcomes. The paper seeks to address this gap.

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The importance of justice perceptions on pay effectiveness: a two-year study of a skill-based pay plan

Cited by 16 publications

References 41 publications

Employee reactions to a reduction in benefit-related compensation: A fairness perspective.

Employee reactions to a reduction in benefit-related compensation: A fairness perspective.

Internal Relationship Marketing: Korean Casino Employees’ Job Satisfaction and Organizational Commitment

A comparative examination of traditional and skill‐based pay plans

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