Hai Ming Chen and Peng Chuan Fu, both of Tamkang University, published “Perceptions of Justice in Extrinsic Reward Patterns” on November 3rd, 2011 in Compensation & Benefits Review’s OnlineFirst section. To read other OnlineFirst articles, please click here.
Effective extrinsic rewards foster a positive culture within organizations. The current study reviewed algorithmic/ experiential reward patterns and perceptions of justice in four businesses to gain insight into the perceptions of employees with regard to justice. Results indicate that perceptions of justice vary according to patterns in extrinsic rewards. This study also discovered that employees perceive fairness according to characteristics specific to the organization and industry. Managers must understand how employees perceive justice to determine the most effective means with which to implement extrinsic rewards, according to two distinct patterns. Suggestions for practical implementation and future research are also provided.
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