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1. Self-interest versus Justice?
2. Organizational justice: What and Why?
3. How to influence perceived fairness?
4. Perceived fairness directs motivation
and shapes behavior
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What does the ultimatum game teach us?
In some situations, humans value justice more than
rational self-interest (Money talks, but it doesnt say it
all)
Rather than simply enjoying the benefits of receivedoutcomes, our satisfaction often depends upon a sense of
whether outcome distributions are fair
People are even willing to give up received outcomes to
punish the unfair allocator
This differentiates us from chimpanzees, who are more
rational maximizers(Jensen, Call, & Tomasello, 2007)
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Concerns with justice are not restricted to humans
https://www.youtube.com/watch?v=meiU6TxysCg
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Trust, cooperation, and interdependence
Other chooses C Other chooses D
You choose C
You choose D
+ 3 !
+ 3 !
- 6 !
+ 6 !
+ 6 !
- 6 !
- 1 !
- 1 !
Businesses and organizations have an interdependent rewardstructure because peoples outcomes depend on the decisions of
others
Social dilemma!Prisoner dilemma
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Trust, cooperation, and interdependence
Two versions of the exact same prisoner dilemma game:
The Wall Street Game:
The Community Game:
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Trust, cooperation, and interdependence
Two versions of the exact same prisoner dilemma game:
The Wall Street Game:
33% cooperators (67% defectors)
The Community Game:
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Trust, cooperation, and interdependence
Two versions of the exact same prisoner dilemma game:
The Wall Street Game:
33% cooperators (67% defectors)
The Community Game:
71% cooperators (29% defectors)
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Trust, cooperation, and interdependence
Two versions of the exact same prisoner dilemma game:
The Wall Street Game:
33% cooperators (67% defectors)
The Community Game:
71% cooperators (29% defectors)
The world as it is perceived, is the world that is behaviorally
relevant (Robbins & Judge)
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1. Self-intrest or Justice?
2. Organizational justice: What and Why?
3. How to influence perceived fairness?
4. Perceived fairness directs motivationand shapes behavior
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Toward a behavioral science of justice
Prescriptive approach
For centuries, justice has been the exclusive domain of
philosophers (e.g., business ethics)
What managers should do and should not do!What is fair managerial conduct?
Discussion killer!everybody sticks to their own values
Need for a less normative approach
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Descriptive approach to justice
Examining actual managerial conduct and decision-making
and how it is perceived by the parties affected by theiractions
perceptions ofwhether or not organizational agents have
acted fairly
Understand why people view certain events as just or unjust,
and what the consequences are that follow from theseevaluations
Bounded rationality!bounded ethicality
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Two cases of handling organizational downsizing
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Why do employees care about justice?
Personal (long range) considerations
!Justice signals certainty/control regarding future treatments/
benefits/outcomes
Social considerations!Justice signals good relationships with the organization and its
members. It shows that the organization and/or supervisor valuesyou
Ethical considerations! Justice is the morally appropriate way others should be treated
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Three components of justice
Distributive justice:Perceived fairness of the amount and allocation of rewards/punishments (equity, equality, need)
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Three components of justice
Distributive justice:Perceived fairness of the amount and allocation of rewards/punishments (equity, equality, need)
Proceduraljustice
Perceived fairness of the process used to determine the distribution
of these outcomes (voice, accuracy, consistency etc.)
!quality of the decision-making process Interactionaljustice
The extent to which one considers to be treated with dignity,
concern, and respect (quality of interpersonal treatment )
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When are procedures/interactions seen as fair?
1.
Voice/input in the decision process
Am I listened to?
Does my opinion matter?
2.
How decisions are made and implemented
Are decisions based on accurate information?
Are procedures applied in a consistent manner?
Is self-interest corrected for?
Am I getting advanced notice of changes?
Is the decision process transparent?
3. How decision-makers behave
Is the why of decisions explained?
Am I treated with dignity and respect?
Is there active listening to my worries and is my perspective/situationtaken into consideration?
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Perceived injustice versus perceived justice
Relevant to wide range of managerial tasksHiring,reward systems, conflict management, layoffs, performance
appraisal
Influence on employee behaviorPerceived injustice
retaliation, decreased performance and morale
Perceived justice
cooperation, increased performance and trust
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1. Self-intrest or Justice?
2. Organizational justice: What and Why?
3. How to influence perceived fairness?
4. Perceived fairness directs motivationand shapes behavior
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Power, Focus, and Motivation
High power: WHAT
focus on the outcomes (What do I want to get done?)
!goal-setting
Low power: HOW & WHY
focus on how to obtain those outcomes and why it matters
(How do I proceed to get it done? Why is it important ?)
!goal-striving
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Results in a common problem:
Mismatch between what managers and subordinates
regard as fair!
Managers tend to overemphasize outcome information,
whereas subordinates are more interested inprocessinformation
As a result, managers often are seen as less fair than they
consider themselves to be
Thus, it is not enough for a manager to be fair. A manager
should act in ways that subordinates can recognize as fair
!Take subordinates perspective
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1. Self-interest or Justice?
2. Organizational justice: What and Why?
3. How to influence perceived fairness?
4. Perceived fairness directs motivation
and shapes behavior
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Decision compliance versus decision support
Process fairness influences motivation, even when decisions
include unfavorable outcomes for oneself
Low PF makes recipients only comply with decisions: Doing only what is minimally required (in-role behavior)
The energizing source of motivation lies outside of the agent
High PF makes them support decisions:
Doing more than what is required (extra-role behavior)
The energizing source of motivation lies within the agent
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Social exchange
Justice Organizational Citizenship Behavior
!More effective organizational functioning
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Justice matters more than ever!
Justice is even more important in times of uncertainty andhardship
If you think of yourself as an agent of change, you have a
chance to really make a difference now Moreover, managers who act fairly evoke the same
conduct in others and have a huge impact on
organizational functioning as a whole