The influence of organizational justice on salesperson responses to merit pay decisions: an empirical investigation

Gorton, Stephen
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Merit pay is the most important component of extrinsic rewards received by sales employees. Its importance derives from the fact that satisfaction with merit pay has been linked to a number of important attitudinal and behavioral outcomes such as job satisfaction, organizational commitment, instrumentality and expectancy beliefs, and job performance. It is not surprising, therefore, that researchers have attempted to delineate the antecedent factors to merit pay satisfaction. A large number of antecedents have been identified in the literature thus far. These include individual differences, job characteristics, leadership characteristics, organizations structure, and other organizational climate factors. Only recently, however, have researchers begun to examine issues relating to fairness of merit pay decisions. These researchers have identified several facets of fairness, namely, procedural, distributive, and interactional, and have suggested that all these fairness aspects will influence how employees may evaluate the merit raises they get. No single study in the marketing literature has thus far attempted to evaluate the relevance of fairness factors for pay outcome evaluations of sales employees. The purpose of this study will be to fill this void. The study not only investigates the relationships between fairness dimensions and evaluation of pay outcome, it also examines whether fairness also determines global attitudes of employees toward their supervisors and the organization. Both normative and instrumental views of organizational justice are considered.

Business Administration Science