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5. Organizational Justice
Organizational Behaviour (ADMS 2400)
York University
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Organizational Justice Individual Decision Making Organizational justice fairness in the workplace: how employees feel authorities and decisionmakers at work treat them. perception of fairness in an organization) Four dimensions: Distributive justice: concerned with the fairness of the outcomes such as pay and recognition, that employees receive (what outcomes are distributed) o Perceived fairness of the amount and allocation of rewards (e., equality, equity, need) Procedural justice: perceived fairness of process used to determine outcome o Care less if they get what they want o Presenting opinion, avoid bias, consistent manner fair Informational justice: whether managers provide employees with explanations for key decisions and keep them informed of important organizational matters o Degree to which employees are provided with truthful explanations for decisions Interpersonal justice: reflects whether employees are treated with dignity and respect. Distributive and procedural justice task performance Informational and interpersonal justice organizational citizenship behaviour Fairness is objective. theory: people prefer to feel they have control over their actions, so anything that makes a previously enjoyed task feel more like an obligation than a freely chosen activity will undermine motivation. Cognitive evaluation: hypothesis, that extrinsic rewards will reduce intrinsic interest in a task. HOW SHOULD DECISIONS BE MADE? Decision: choice made from two or more alternatives. Rational model (consistent, choices) 1. 2. 3. 4. 5. 6. Define the problem Identify the criteria: relevant to making the decision (preferences) Allocate weights to the criteria: which is more important than others Develop alternatives: that could succeed in resolving the problem Evaluates the alternatives: using criteria Selects the best alternative: selecting the best out of them The model suggest that we have full information, identified all the relevant options and choose the highest utility. (process which people should follow when optimizing and maximizing their outcome) How do individuals actually make decisions? Bounded rationality: construct simplified models that extract the essential features from problems without capturing all their complexity. o Satisfice: seek solutions that are satisfactory and sufficient (most acceptable) Intuition: based on experience Most common judgment shortcuts are mistakes that are often made when making decisions. Overconfidence Bias: being overly optimistic (thinking you can do something when you Usually out of area of expertise. Anchoring bias: tendency to fixate on initial information and fail to adequately adjust for subsequent information (basing decisions based on first information) o If you suggest a salary of consideration is between 50 and 60 o If you suggest a salary of 55 655, consideration is between 55 and 60 Confirmation Bias: represents a case of selective perception (only selects information that support our decisions) o go to collect evidence because we tend to seek out sources most likely to tell us what we want to hear o seek out information that reaffirms past choice o discount information that contradicts them Availability Bias: tendency for people to base their judgments on information that is readily available (recent and vivid) o Annual performance appraisals, giving recent behaviour than six months ago Escalation of Commitment: staying with a decision even when there is clear evidence that wrong (relationship is not going well but still going to marry) Randomness Error: create meaning in random events, particularly when we turn imaginary patterns into superstitions. o Tendency to believe we can predict the outcome of random events o never make important decisions on Friday the Risk Aversion: tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have a higher expected payoff o Tendency to prefer a sure thing over a risky outcome Hindsight Bias: believe falsely, after the outcome of an event is actually known, that we could have accurately predicted that outcome. Equity Theory (also part of motivation) Compare what they get from their job (outcome) to what they put into it (inputs: experience, education) This negative state of tension provides the motivation to do something to correct it. Equity Theory: comparing the outcomes (what you get) and inputs (what you put in your work) to another a ratio)
5. Organizational Justice
Course: Organizational Behaviour (ADMS 2400)
University: York University
