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Pay Administration

Pay Administration. Procedural Justice. © Nancy Brown Johnson 2005. Exercise: Think of Something that was unfair. Write down what it is and why it was unfair. Organizational Justice. Defined: the perceived fairness of the organization Distributive: outcome fairness

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Pay Administration

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  1. Pay Administration Procedural Justice © Nancy Brown Johnson 2005

  2. Exercise: Think of Something that was unfair. • Write down what it is and why it was unfair.

  3. Organizational Justice Defined: the perceived fairness of the organization • Distributive: outcome fairness • Procedural: process fairness • Interactive: how you perceive your interactions • Were you treated with dignity and respect • Were you given an adequate explanation

  4. Procedural Justice • Influences citizenship behavior • Employees more likely to go above call of duty

  5. Leventhal’s Six Attributes of a Fair Procedure • Consistent • Bias Free • Accurate • Correctable in case of error • Representative of all concerned • Based upon prevailing ethical standards

  6. Elements of Administration • Culture: influences the interpretation of the compensation system • paternalistic, democratic, bureaucratic • general human resource philosophy • influences human resources: ASA-Attraction, Socialization, Attrition

  7. Elements of Administration: Openness of Communication System • Information available • Information kept secret

  8. Communications • Ask for employee input • jobs • labor markets • performance • Considerations • employee compensation expectations • benefits • administrative • equity perceptions

  9. Pay Secrecy • Better when poor system • Better to communicate when good system

  10. Employee Participation: Two ways to participate • System design • goals, major policies • System operation • how the system is carried out

  11. Grievance Systems • Appeals procedures that allow employees to complain about compensation issues • Attitude surveys- that give employees the opportunity to voice complaints • Hot lines

  12. Summary • Administrative issues influence commitment • Judged against backdrop of culture • Perceived fairness of system will influence employee willingness to engage in activities beyond job

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