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

  1. 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.

  2. 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.

  3. 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.