Unfair rewards, poorly performing organizations and perceptions of deservingness as explanations of diminished job performance

Abstract

PurposeThis study aims to detail how employees’ experience of distributive injustice may compromise their job performance, with specific attention to how this detrimental process may be explained in part by their beliefs about organization-level underperformance and moderated by their own psychological entitlement.Design/methodology/approachThe research hypotheses were tested with three-round, time-lagged data collected among employees and their supervisors.FindingsA critical channel through which employees’ perceptions that their organization’s reward system is unfair translates into thwarted job performance is a conviction that their organization does not meet its own performance targets. As a mediator, such organizational underperformance beliefs have particularly salient effects on employees who believe they are more deserving than others.Practical implicationsThis study gives HR managers insights into how they can reduce the danger that unfair reward practices escalate into a reduced propensity by employees to complete their job tasks diligently. HR managers should make employees aware of their possible entitlement and discourage them from expecting that things always must go their way.Originality/valueThis research unpacks the connection between distributive injustice and job performance, by delineating the unique roles of two pertinent factors (organizational underperformance beliefs and psychological entitlement) in this connection.

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“…The study accounted for statistical analysis for the effect of two demographic variables and this study used to control, the gender (male =0 and female =1) and total experience in the organization. Researchers claim that employees hold about their performance level depending upon their gender as well as how long they have been working in the organization (De Clercq et al, 2023;Edgar et al, 2021).…”

“…Job performance explained by Rotundo and Sackett (2002) behavior that is under control by any individual to permit the consideration of objective (Zeb et al, 2020). One of the most important cited variables in human resource literature is job performance (De Clercq et al, 2023), and this is partly due to some significant reasons. It is important for organizational outcomes and human resource management (HRM).…”