Perceptions of Justice in Extrinsic Reward Patterns

Abstract

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. Keywordsperceptions of justice, extrinsic rewards, direct/indirect rewards, reward patterns, algorithmic/experiential pattern can help managers to create a climate of fairness and improve the effectiveness of granting rewards. Following a review of the literature related to reward patterns, we then investigate this issue in four separate businesses. Finally, we provide suggestions and implications for practitioners and future research.

Winning the War for Talent: Modern Motivational Methods for Attracting and Retaining Employees

“…[28][29][30][31][32] This is especially true in the current era of low unemployment where employees have many options available to them. To provide evidence for this argument, we begin by reviewing evolving trends in the use of tangible cash and cash-like rewards such as gift cards and vouchers to communicate appreciation and recognition [33][34][35][36][37][38] (see the appendix for definitions of key terms). Next, we argue that organizations should help employees achieve a sense of meaning and purpose at work through all types of rewards offered, by increasing recognition and appreciation as part of their total reward strategies.…”