ABSTRACT

TWO crucial aspects of organizational functioning are making decisions and allocating rewards. Separately, these two areas have received a great deal of theoretical and empirical attention, though participation and allocation rarely have been linked conceptually. However, the way in which decisions are made in an organization can influence both the allocation methods used and employees’ perceptions of allocation. Furthermore, both decision making and allocation systems can influence important individual and organizational outcomes such as satisfaction, performance, commitment, and organizational productivity.