UNTANGLING PROCEDURAL AND DISTRIBUTIVE JUSTICE - THEIR RELATIVE EFFECTS ON GAINSHARING SATISFACTION

Prior studies on fairness have investigated the conditions under which either procedural or distributive justice is more important to employ ees. One view holds that procedural justice is mom important when the outcome is group-based, and distributive justice is more important whe n an outcome is individual-based. The second view is that distributive justice is more important when an outcome is high or positive, and pr ocedural justice is more important when an outcome is low or negative. This study examined the effects of procedural and distributive justic e on satisfaction with gainsharing, which involves a group-based outco me. The study was conducted with tare firms, one representing a high p ayout condition and one a low- and zero-bonus payment. The results sug gest that level of payout is important in the determination. Implicati ons for research and for corporate gainsharing are discussed.