Literature Review On Fairness

Fairness is an issue in most human resource decisions. You can hire or reject another and promote or demote one candidate. How employees react to these decisions and how they think the decisions and the processes were fair for them. Fairness is inseparable from what most people think of as justice. A company that is just is, among other things, equitable, fair, impartial, and unbiased in how it does things. With respect to employee relations, experts generally defined organizational justice in terms of at least two components which is distributive justice and procedural justice. Distributive Justice defined as the fairness and justice of the decision‘s result. For example, whether employee get equitable pay raise? Procedural Justice can explained

Fairness in organizations is essential due to it affects behaviors and results in the workplace, and can foster effective functioning of organizations (Cropanzano, Bowen, & Gilliland, 2007). Fairness theory is important in the management literature and been put forward as a means of integrating much of the relevant justice research (Folger & Cropanzano, 1998). Supervisors or managers take action earlier can have greatest significant impact on judgments related to fairness (Lind, 2001). Uncertainty is likely to be high and fairness judgments are most likely to be reevaluated, when the organizational environment, internally or externally, is undergoing strategic changes (Lind & van den Bos, 2002). In this situation, a manager’s actions encouraging fair treatment are more likely to be incorporated into the general fairness impression of employees in the workplace than would be the case in more stable times (Williamson & Williams, 2011). Research on fairness in the workplace notes that employees, before engaging in meaningful behavior, usually evaluate actions on the part of organizational representatives as well as the resulting outcomes (Bernerth, Armenakis, Feild, & Walker, 2007). In addition, other research has shown that individuals

In a study conducted by Aidla, (2013) examining how perception of negative inequity at work influence individual behavior at work adopted fairness, unfairness and situation as indicators for measuring inequity. However, the study concludes that employees will decreased performance when they experience inequity by change their outcome. Sharma, Borna & Steams, (2009) suggests that if employees value fair treatment by the organization and perceive that they are indeed treated fairly, they will be committed to the organization. Thus feel grateful to respond by providing something of value in return. Likewise, Nadiri, Tanova, (2010) suggest that the fairness of personal outcomes that employees receive may have more impact on their performance and turnover intentions. Gino and Pierce (2010) states that distress in a perceived inequity can lead to a different emotional reaction that motivate individual to dishonestly favor or hurt others which further shows that negative inequity may produce feelings of envy towards referent other, and these feelings, might motivate individual to hurt the referent other through dishonest behavior. In contrast, positive inequity may generate guilt which might motivate the individual to dishonestly help the referent other. However, both over reward and under reward generate an emotional feeling between workers in an organization.