Premium Essay

Fairness in Reward Allocation

In:

Submitted By avijit1
Words 2540
Pages 11
Fairness in Reward Allocation
Name of the student:
Name of the University:
Course ID:
Author’s note:

Introduction
The discussion of the essay is associated with the fairness in reward allocation that depends on various processes. Most of the organizations are facing the problem to implement the transparent process during the reward allocation because of the individual perception. The theory regarding the fairness also suggest to implement a structured way that will adhere to the policy of the organization so that no employees remain with the dilemma that justice is coming in the proper way. The theory is used to understand the behavioral aspect of the employees and their superior where researchers have given several feedbacks that influence the process (Lund, Scheer and Kozlenkova 2013). The argument is structured in such a way that helps to understand the several aspects of the importance of the organizational fairness in the compensation management, role of organizational fairness in reward allocation, factors that are influencing fairness in reward allocation, impact of reward distribution on employees and how fairness can be achieved within the process. All the processes are discussed with the view of several researches that establish the fact of issues and solutions of the reward allocation. At the end of the essay, every topic is summarized with the findings that could help to enhance the reward allocation.
Discussion
Operating an organization always needs fairness to satisfy its employees because every employee have individual perception of their allocated reward that what they are getting form the company and what they are suppose to get. According to the Equity theory of fairness in reward allocation Olsen (2015) states that employees judge the fairness of their organizational superior based on their social comparison, which is relevant on the

Similar Documents

Free Essay

Hr 434 Week 3 Homework

...Ralph Lauren Polo Reward system This firm has adapted a reward system that will maximize employee performance alignment with Polo’s objective and promote fairness to the employees. Therefore, its reward system promotes implementation of organizational goals and compromises personal interests. It leads to motivation of active employees because they are rewarded higher than inactive employees. Clients argue that Ralph Lauren Polo employees possess customers’ relation’s skills because they are trained on selling clothes hence they are rewarded appropriately. Therefore, this system is effective and may lead to expansion of market share and retention of its employees (Spitzer, 2009). Ralph Lauren Polo Business environment The system delivers the value of performance to employees through aligning their goals to the reward system in order to center employees on organizational culture, perceptions and values. This involves positive feedback given by clients, which are compensated as bonuses or rewards. Polo’s reward system is consistent to the organizational culture to promote excellent reputation in the community because human resource is a feature of rewards system (Spitzer, 2009). This reward system equips Polo’s management with tools and strategies to reward employees according to the desired organizational culture. The organization culture of Polo is performance based to promote effectiveness of their reward system and fairness to the employees. This promotes...

Words: 743 - Pages: 3

Premium Essay

Monica

...This article was downloaded by: [The University Of Melbourne Libraries] On: 02 September 2015, At: 02:39 Publisher: Routledge Informa Ltd Registered in England and Wales Registered Number: 1072954 Registered office: 5 Howick Place, London, SW1P 1WG Accounting and Business Research Publication details, including instructions for authors and subscription information: http://www.tandfonline.com/loi/rabr20 Fairness in performance evaluation and its behavioural consequences a Mahfud Sholihin & Richard Pike a b Universitas Gadjah Mada , Indonesia b School of Management , Bradford University , Emm Lane, Bradford, BD9 4JL Phone: +44 (0)1274 234393 Fax: +44 (0)1274 234393 E-mail: Published online: 04 Jan 2011. To cite this article: Mahfud Sholihin & Richard Pike (2009) Fairness in performance evaluation and its behavioural consequences, Accounting and Business Research, 39:4, 397-413, DOI: 10.1080/00014788.2009.9663374 To link to this article: http://dx.doi.org/10.1080/00014788.2009.9663374 PLEASE SCROLL DOWN FOR ARTICLE Taylor & Francis makes every effort to ensure the accuracy of all the information (the “Content”) contained in the publications on our platform. However, Taylor & Francis, our agents, and our licensors make no representations or warranties whatsoever as to the accuracy, completeness, or suitability for any purpose of the Content. Any opinions and views expressed in this publication are the opinions and views of the authors...

Words: 5714 - Pages: 23

Free Essay

Justice and Economic Distribution

...discrimination, prejudice or judging out of hunger. On the other hand, justice should not only be seen in terms of punishing the law breakers, but it also means treating people in an equal and fair way. For instance, in a family set up parents should treat their children in an equal manner. According to the family justice, parents should only punish their children in a way that correct the mistake but reward children when they do a positive thing. The laws or regulations that ensure every person practices justice have their roots may be in societal norms, religious ethics, and the constitution of a state. The primary goal of every rule of law is to ensure that all every member of a state or a society a gets just treatment. According to Maiese, M (210) what people see as injustice is capable of resulting into unrest, dissatisfaction, or even revolution. He goes on to claim that there are various types of justices, coming as a result of various ways through which guiding principles of justice are expressed by various levels. The term distributism is an economic theory that supports economic fairness by promoting largest distribution of national wealth to a possible bigger population Anderson, G (98). Distributism to a wider sense can also apply to government set up and its operation, in terms of politics it means that constitution disseminate political command or power within the society. Since the economy of a state is not only influenced by...

Words: 1484 - Pages: 6

Free Essay

Hrm533

...Date: November 26, 2011 Utley Food Markets Pay-for-Performance System Changing to a pay-for-performance pay system always has several implications. The most important of these are discussed in the succeeding paragraphs. The first implication is determining what to reward. Management must first align overall strategy with projected business outcomes, and decide what type of performance will be measured, analyzed and considered in a pay for performance program. Key factors such as support from the management, establishing a valid and fair measuring system, along with a credible evaluation system and projecting effectiveness of the program in the long term are all needed in order for the plan to function properly. “When used properly, merit pay will reinforce the accomplishment of individual contributions that are in line with the identity, strategic plan, and objectives of the organization” (WorldatWork, pg. 313). The second implication is documenting performance standards. A pay for performance system must be constructed according to guidelines and frameworks which when evaluated define standards and characteristics relating to the program. The program needs a baseline, expectations of progress and a rating system that is a valid determinant of performance. In addition, performance standards must be documented consistently and fairly among all peers. Specific criteria such as what to measure, how to measure and who to measure must...

Words: 1234 - Pages: 5

Free Essay

Ethical Issues in Hrm in Organizations

...ETHICS IN HUMAN RESOURCE MANAGEMENT QUESTION Identify any ethical issues most likely to take place in the function of HRM in an organization   Introduction The term ‘organizational justice’ refers to the extent to which employees perceive workplace procedures, interactions and outcomes to be fair in nature. These perceptions can influence attitudes and behavior for good or ill, in turn having a positive or negative impact on employee performance and the organization’s success. The concept of organizational justice extends traditional models of work behaviour that tend to conceptualize job demands, job control and social support as the main factors determining individual well-being and productivity. ‘Fairness’ is a largely subjective construct, which captures more basic elements of the social structure in which these other characteristics operate. Often the notion of organizational justice will only become relevant and tangible when a violation of said justice occurs. Examples of perceived injustices within an organization might include: • unequal pay for men and women doing the same job • performance reviews being conducted by someone with whom the employee has had little previous contact • the use of personality inventories to select new staff • arbitrary dismissals. Work psychologists have highlighted three distinct, though overlapping, types of organizational justice: distributive, procedural, and interactional. Each will be briefly described...

Words: 4413 - Pages: 18

Premium Essay

Role of Management in Creating Fairer Practices and Conditions at Work

...living conditions. In several organizations, inequality is experienced in many ways. The gaps range from the way remuneration is done, and the way promotions are offered to the way disciplinary actions are taken upon those who are involved in misconduct within the organization. Every employee enjoys a working environment where he or she is treated with fairness, dignity and respect. Through the provision of a favorable working environment, employees become motivated, and the result will be improved productivity and customer service. Therefore, a healthy working environment should be free from inequalities of any kind in the organization. The management of any organization has a huge role to play to ensure fair practices and conditions at work. This paper is going to outline the measures that can be taken by the management to ensure a working environment free of inequalities. The first thing the management of any organization can do to realize the fairness in the organization is to conduct equality trainings to all employees (Castaldo et al. 2009). All employees should be made aware of the justice issues related to resource allocation, performance appraisal, recruitment process and the process of promotion. On the other hand, training should be done to the employees to equip them with the knowledge of the equality policy of the organization and the meaning of the policy to them as employees (Castaldo et al. 2009). This is a move to make the employees aware of what is expected of them...

Words: 1058 - Pages: 5

Premium Essay

Organization Behavior

...Midterm Study Guide All definitions Chapter 1 A. Defining Organizational Behaviour Page 4 • A field of study that investigate the impact of individuals, groups, and structure on behaviour within organizations; its purpose is to apply such knowledge toward improving an organization’s effectiveness. B. Challenges in the Canadian Workplace Page 6 Challenges at the Individual Level 1. Individual Differences 2. Job Satisfaction 3. Motivation 4. Empowerment 5. Behaving Ethically Challenges at the Group Level 1. Working With Others 2. Workforce Diversity Challenges at the Organizational Level o Improving Customer Service o Stimulating Innovation and Change o The Use of Temporary (Contingent) Employees o Improving Quality and Productivity o Developing Effective Employees o Helping Employees with Work-Life Balance o Creating a Positive Work Environment o Responding to Globalization Chapter 2 A. Perception Page 38 What is Perception? • The process by which individuals organize and interpret their impressions to give meaning to their environment. Why is it important? • Because behaviour is based on perception of what reality is, not on reality itself. • The world as it is perceived is the world that is behaviourally important. Why we study perceptions? • To better understand how people make attributions about events. We don’t see reality. We interpret what we see and call it reality. The attribution...

Words: 2385 - Pages: 10

Premium Essay

People Management Mantra for Success

...Sec No | Group No | Name of the case | Name or names of the person created the final output | 4 | 3 | People Management, The Mantra For Success: The Case Of Singhania And Partners | Ashish.K.AgarwalKaran BabarChitra BenganiDebasmita NandyDeepak PoddarDhananjay DixitGourav Mukherjee | Problem Statement How can Singhania And Partners sustain its successful people management system in future? | System | EA Factor (Political, Economic, legal etc.) | Implications on the problem | Political : | As more and more countries (for ex. China, Korea) are increasingly liberalising their legal services, the Indian Government may also follow the path. Thus competition may increase immensely in the sector, an increase in the attrition rates has already created a scarce of resource of legal professionals. Thus Singhania And Partners can also face the heat. | Economic: | There is a scarcity of legal professionals in India, and the scope of work increasing consistently (Starting with the liberalisation of Indian Economy to current outsourcing scenario). Thus it is very important for Singhania And Partners to maintain its people management system. | Legal: | Currently foreign law firms are prohibited from giving any legal advice that could constitute practising Indian law. This is an advantageous situation for Indian law firms like Singhania And Partners as it increases their work horizon and decreases the competition. | Social: | As India’s legal system is slow, the companies...

Words: 1518 - Pages: 7

Premium Essay

Organizational Behaviour Assignment

...OB Chapter 4 Notes What are Values? * Values are a broad tendency to prefer certain states of affairs over others. * The preference aspect of this definition means that values have to do with what we consider good and bad. * Values are motivational, since they signal the attractive aspects of our environment that we seek and the unattractive aspects that we try to avoid or change. * They signal how we believe we should and should not behave. * Broad tendency means that values are very general and they do not predict behaviour in specific situations very well. * People tend to hold values structured around such factors as achievement, power, autonomy, conformity, tradition, and social welfare. * We learn values through the reinforcement process by parents, teachers, and representatives of religions. Generational Differences in Values * Generations are: 1. Traditionalists 2. Baby boomers 3. Generation X 4. Generation Y * Categorized by different ages, but also distinguished by growing up under different socialization experiences; which in result could cause different values. * Such values differences might underlie the differential workplaces assets and preferences of leadership style. * Some indication that Gen X and Y are more inclined to value money, status, and rapid career growth than are boomers. * Also evidence that Gen X and Y, compared to boomers, see work as less central, value leisure more, and are...

Words: 3520 - Pages: 15

Premium Essay

Managing Justly Across Cultures

...www.sciedu.ca/jms Journal of Management and Strategy Vol. 1, No. 1; December 2010 Managing Justly Across Cultures: The Problem of Fairness in International Business Rolf D. Dixon (Corresponding author) Weber State University 3802 University Circle, Ogden, Utah 84408, USA Tel: +1-(801)-626-7542 E-mail: rddixon@weber.edu Cam Caldwell University of Georgia G-2 Brooks Hall, Athens, GA 30602-6256, USA Tel: +1-(318)-446-0129 E-mail: camcaldw@uga.edu Apichai Chatchutimakorn College of Business, McNeese State University Kayla Gradney College of Business, McNeese State University Kochakan Rattanametangkul McNeese State University katekochakan@yahoo.com Received: September 14, 2010 Abstract The aim of this paper is to examine the relationships between organizational justice and the factors that characterize cultural differences. This paper begins by briefly summarizing the nature of organizational justice and by identifying how justice is perceived. Hofstede’s five factors of cultural dimension model, which he developed in his seminal 1980 research on national cultures, is utilized to present characteristics of cultural differences. Ten propositions are then offered which relate to organizational justice and differences in cultural perspectives. These propositions suggest specific management approaches that organizational leaders can adopt to be more effective in dealing with employees from respective cultures. This paper concludes by identifying the importance of understanding...

Words: 7281 - Pages: 30

Premium Essay

Organizational Behavior

...Motivation and organizational structure ——A study on Tongchuangtongde Company Preface * Why do we choose to analyze the aspects of motivation and organizational structure of Tongchuangtongde? At one time, employees were considered just another input into the production of goods and services. But research has shown the effect of different working environments on productivity. Employees are not motivated solely by money but it is also linked to employee behavior and their attitudes. From the interview with Mr. Chan, we have realized that Tongchuangtongde does well in motivating employees, especially intrinsically. As a result, motivation is one of our focuses. Organizational structure affects organizational action in two big ways. First, it provides the foundation on which standard operating procedures and routines rest. Secondly, it determines which individuals get to participate in which decision-making processes, and thus to what extent their views shape the organization’s actions (employee involvement). Structural inertia is one of the main resistances to change for Tongchuangtongde. The company is faced with a structural change so we’d like to look into depth on its structural redesign. So we look into motivation and organizational structure to make this report. Introduction Chan Zuohai is a young entrepreneur who started several companies on his own. The first was in 1998 Tongchuangtongde Construction and Decoration company. In 2002, he founded Tongchuangtongde...

Words: 4531 - Pages: 19

Premium Essay

Management

...Introduction From the article given, Volvo was suffered from several problems such as high degree of absenteeism, staff turnover, and so on. The main reason that led to such issues was because employees under Volvo were lack of motivation. Due to the high repetitive task and the employees in Volvo were not motivated, therefore, there was deterioration of the quality of cars produced which would have a negative impact on their reputation. To overcome those problems, Volvo decided to reorganize the working environment as well as job scopes of employees in order to fulfill their job satisfactions. Volvo starts to motivate its employees based on the combination of the early theories and contemporary theories of motivation. Designing Motivating Jobs The first contemporary motivation theory Volvo Company used is job design. Job design refers to the ways tasks are combined to form complete jobs. The main purpose of job design is to increase both employee motivation and productivity. In the case of Volvo, they enlarge the job’ scope by increasing the number of tasks an individual performs as well as increasing diversity of employee’s work as they came up with a new manufacturing system where small groups of between 5 to 12 employees were responsible for the assembly of a complete vehicle, from beginning to the end, rather than simply taking a role in one aspect of the production. While job enlargement increases job scope, job enrichment increases job depth and allows employees...

Words: 1358 - Pages: 6

Premium Essay

Examining Enron's Failure

...Examining Enron's Failure Organizational-behavior theories help to understand the effects of leadership, objectives, individual characteristics and action, and employee behavior and attitudes within an organization. It also explains the effects of internal environments, such as culture, the structure of the organization, resource and task allocation, and external environments such as competition or government regulation. These factors contribute to the performance, success or failure, and survival or fall of an organization. Organizational-behavior theories help to explain the collapse of Enron and how leadership, management, and organizational structure contributed to its failure. Organizational Structure With a market capitalization of nearly $74 billion, Enron was one of the world’s leading energy companies by the late 1990s. However, it had gained this status through the perpetration of illegal activities at the very highest levels of the organization. Enron’s fall was because of the organizational-level corruption that grew from its structure and trickled down to the collective behavior of its employees. Enron’s top-down, hierarchical structure by unit grouping meant that the top management team either directly or indirectly through their subordinates influenced the actions of the organization. For example, the structure of the accounting department allowed it to disregard legal requirements through “structural secrecy” that Enron’s executives could exploit (Beenen &...

Words: 1183 - Pages: 5

Premium Essay

Ethics and Business Strategy

...Corporate Ethics: The Moral element of business :  Corporate Ethics: The Moral element of business Defining Ethics :  Defining Ethics Understanding of right and wrong Ability to distinguish between the right and the wrong. Integral part of life Running a business is a part of life Corporate Ethics :  Corporate Ethics Based on principles of integrity and fairness Focuses on - Stakeholders, and employees. Quality of product and services Customer satisfaction. Community and environment Corporate Ethics are implemented to- :  Corporate Ethics are implemented to- Define the framework of the acceptable behavior. Follow high standards of practice. Create benchmarks for self evaluation. Enhance sense of community. Create transparency in the business activities. Foster higher standards of business ethics. Comply with government laws and norms. Who is responsible for ethics in the company? :  Who is responsible for ethics in the company? “Everyone” An ethical problem can’t be resolved unless it’s first recognized as a ‘dilemma’ :  An ethical problem can’t be resolved unless it’s first recognized as a ‘dilemma’ Reward or punishment to ethical integrity and moral courage decide the act of an individual Corporate ethics: The global perspective :  Corporate ethics: The global perspective Study by Columbia University 1990 Half of 1,000 business executives admitted being rewarded for taking action on the job that they considered unethical.  One in three reported that refusing to take...

Words: 781 - Pages: 4

Free Essay

Wip Paper

...WORK IN PROGRESS PAPER Individual-level Cultural values and Workplace Attitudes and Behaviours: Examining the moderating effects of individual-level cultural values on social exchange relationships involving organizational justice and organizational citizenship behaviour (OCB) in Pakistani organizations Samina Quratulain* Abdul Karim Khan* CERGAM, Université Paul Cézanne Aix-Marseille-III, France ABSTRACT The relationships among employee’s work related variables, cultural variables and OCB are investigated in Pakistani work setting. Based on the review of literature it has been observed that perceived organizational justice (procedural, distributive & interactional justice) is an important antecedent of OCB. This study intends to extend the previous research by assessing the validity of social exchange theory within Pakistan where norms of reciprocity (social exchange ideology) may play a lesser role in social exchange relationships. The primary objective of the study will be to compare the influence of individual differences in values using Hofstede’s cultural value framework (collectivism-individualism, uncertainty avoidance, masculinity-femininity, Power distance) as moderators of generally well established positive relationships between OCB & employee’s perception of organizational justice. The results will provide insights into the influences of employees value differences on relationships established in management literature. Keywords: Organizational citizenship behaviour;...

Words: 7023 - Pages: 29