Recent social psychological work on procedural justice suggests that people given the opportunity to participate in a decision are more likely to see that decision as just than those given no such opportunity. The operation of this “fair process effect” in legal settings contributes to the legitimacy of those settings and to the stability of their structure over time. A similar, limited opportunity for participation by experimental subjects playing the role of employee in situations designed to model hierarchical, profit-oriented business enterprises produces a similar effect in some cases, but a 'frustration” effect in others. In this latter case, limited participation leads people to see the decision as less just than when no participation is allowed. Previous interpretations of these data neglect the possibility that those in the role of employees recognize a basic conflict of interest with employers in such enterprises and see limited participation as a strategic device to induce loyalty and commitment. This paper reinterprets these data in light of that possibility and argues that various forms of participation may benefit or harm the interests of employers and employees differently.
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