chapter  9
24 Pages

Managing variable pay systems in smaller workplaces: The significance of employee perceptions of organisational justice


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Over the past two decades, the debate surrounding variable pay systems has moved on from managing traditional conceptions of occupational equity and fairness in collective bargaining processes, to influencing individual employees’ perceptions of their organisation. The notion of fairness has been colonised by organisational justice research operating within the psychology paradigm (Konovsky, 2000). Much work has focused on defining and classifying types of justice and explaining the antecedents and outcomes of different kinds of justice in respect of different employment practices. Remarkably few studies (Folger and Konovsky, 1989; Dulebohn and Martocchio, 1998; Lee et al., 1999) have focused on pay, thus making it particularly worthy of analysis.