Topic 6C - Organisational Justice
Week 4: Ethics, Organizational Justice & CSR
Speaker: Dr. Edward O'Connor
Institution: Maynooth University, School of Business
HRM Justice
Definition of Justice: The principle that people receive that which they deserve.
Interpretation influenced by various fields:
Ethics
Rationality
Law
Religion
Equity and fairness
Impact of Injustice: Injustice is harmful to individuals and organizations.
Morality: Justice refers to actions or decisions that are morally right.
Ethical Strategic Human Resource Management (SHRM)
Intended, Actual, and Perceived Practices
Intended Practices: Closely tied to an organization’s strategy as decided by leaders.
Actual Practices: What is implemented based on intended practices.
Perceived Practices: Employees’ subjective interpretations of actual practices.
Outcome Alignment: Effective talent management programs should have a high correspondence between intended, actual, and perceived practices, enhancing desired outcomes.
Perceived Organizational Justice
Definition: Personal assessment of the ethical and moral standards of managerial conduct.
Significance: Determines how employees judge organization behavior, influencing their attitudes and behaviors.
Foundational Theories of Organizational Justice
Equity Theory
Fundamental Concept: Employees prioritize perceived fairness over actual outcomes.
Input/Output Ratio: Employees compare their outcomes (rewards) to their inputs (efforts) in relation to their peers.
Perception Emphasis: Equity involves the subjective perception of balance, which can be distorted.
Social Exchange Theory (SET)
Basics: Explains social change as negotiated exchanges between parties.
Relationships built on cost-benefit analyses and comparative alternatives.
Underlying Principles: Relies on reciprocity and social obligations; interactions are contingent on actions of each party.
Assumptions:
Perceived situations influence real consequences.
Human attribution defines the meaning of social facts.
Behavior is viewed as exchanges aimed at maximizing rewards and minimizing costs.
Successful Relationships: Require equal give-and-take from both parties.
Cost-Benefit Analysis in SET
Costs: Negative aspects such as effort, time, and finances.
Rewards: Positive aspects like support and acceptance.
Profit Calculation: Relationship worth is calculated as Rewards - Costs.
Positive vs. Negative Relationships: A positive figure denotes a good relationship, while a negative figure indicates a poor one.
Forms of Organizational Justice in Ethical SHRM
Distributive Justice: Fairness of outcomes and allocation; based on:
Equity: Rewards based on contribution.
Equality: Equal outcomes for equal work.
Need: Benefits based on individual requirements.
Procedural Justice: Fairness in the allocation process determined by:
Voice: Employee input is heard.
Transparency: Clear understanding of processes.
Fairness: Respectful treatment throughout.
Impartiality: Neutrality in processes.
Interactional Justice: Quality of treatment from authority figures includes:
Interpersonal Justice: Dignity and respect.
Informational Justice: Sharing relevant information with employees.
Summary of Organizational Justice Dimensions
Distributive Justice: Balance in resource allocation without favoritism.
Procedural Justice: Fairness in decision-making processes involving employee input.
Interactional Justice: Care and respect in communication between employees and management.