C. Lee et al., The importance of justice perceptions on pay effectiveness: A two-year study of a skill-based pay plan, J MANAG, 25(6), 1999, pp. 851-873
We conducted a survey across a two-year period to examine the attitudinal e
ffects of skill-based pay (SBP) plans in a consumer products company in the
Northeast region of the United States. We examined the relationship betwee
n SEP plan characteristics and employees' evaluation of (and reactions to)
the pay system; fairness perceptions were consider-ed as the explanatory me
diating variable. The results demonstrate that SEP plans, which provide tra
ining and are better understood and communicated, will lead to an increased
general perception of fairness which, in turn, will lead to more positive
evaluations of the plans a year later: implications for the relationships b
etween fairness perception and pay system design are discussed (C) 1999 Els
evier Science Inc. All rights reserved.