Organizational Justice Impact Employee Job Commitment, Satisfaction, And Performance

Better Essays
Organizational justice is a concept that represents how fair employees feel they are being treated by their employer. This encompasses distributive justice, perceptions around outcomes such as pay and promotions, and procedural justice, how these outcomes are determined. Why is this important? An organization’s culture is defined by it. Organizational justice impacts employee job commitment, satisfaction, and performance. Employees perceptions of fairness will impact how successful a company is in their market. (Patrick, 2012) (Kreitner & Kinicki, 2013)

The concept of organizational justice was birthed out of equity theory. Pioneered by the psychologist John Stacey Adams, the theory holds that “motivation is a function of fairness in
…show more content…
As it sounds, pay transparency reflects on organizations decision to be open about the salary of each employee/position. In his Ted Talk, David Burkus (2016) challenges the traditional practice of secrecy around salaries. For Burkus (2016), pay transparency is the biggest way to combat inequity and pay discrimination. “Being open and transparent about how we compensate our team breeds trust amongst all people involved,” says Leo Widrich, CMO at Buffer (Baer, 2014). Buffer is a tech company focused on products and services to help organizations maximize their social media campaigns. Buffer publicly disclosed their salary formula and every employee is aware of what everyone makes, all the way up to the CEO. They consider the move to pay transparency as an “ethical imperative” and competitive advantage, highlighting their growth, profit, and company culture as proof. (Widrich, 2013)

Is pay transparency the answer to problems of inequity in the workplace? The results at Buffer seem to point in that direction. However, larger organizations such as Google don’t seem to embrace the idea of pay transparency. An informal initiative internally publishing salaries, led by a Google engineer, was less than welcomed resulting in the denial of the engineer’s bonuses. (Weinberger, 2015) Professor of Strategy and Strategic Leadership, Todd Zenger (2016) encourages organizations to count the cost. According to Zenger, organizations should consider if pay
Get Access