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.