Organizational Justice: Theory, Types, and Real-Life Business Case

This presentation covers the concept of organizational justice, its types (distributive, procedural, and interactional), and a real-life business case example. It also discusses ways to promote organizational justice at the workplace, such as employee motivation, participation, communication, and justice climate. The presentation concludes with the effects of fair organizational justice on employee satisfaction, commitment, and organizational citizenship behavior.

Organizational Justice
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Table of content
• Introduction to organizational justice
• Equity Theory
• Specific business case or instances
• Synthesis of insights from the case study and
theory
• Member contribution
• References

Organizational Justice
• Organizational justice promotes fairness
• Defines as how an individual is being treated
by his top management
• Defines how an employee is being treated
with equal respect and dignity by project
authorities
• Fair treatment at the workplace is essential to
effectively working together Types of Justice:
• Commutative,
• distributive,
• social and legal

Organizational Justice
• Refers to the employees perception from
justice and fairness perspective
• Creates a sense of satisfaction,
engagement, and meaningfulness, and can
foster productivity, well-being, and health
• Directs management on how to behave
with an employee, so that they feel they
have been treated fairly

Model of organizational
justice

Equity Theory
Input
• Effort
• Experience
• Education
Output
• Pay
• Promotion
• Recognitio
n
Ratio Comparison Perception
O/I a < O/I b Under-rewarded (Equity
Tension)
O/I a = O/I b Equity
O/I a > O/I b Over-rewarded (Equity
Tension)
Outcome of an individual Outcome
of others’
Input of an individual =
Input of others’• Alteration in input
• Change quality in outcomes
• Select altogether a different
referent
• Leave the existing job
• Change self perception
• Change perception of others

Business case from real life
example
• Ainsley – student of university – perusing bachelor’s degree in finance (Robbins, et al., 2017).
• Summer Internship in x company – in finance department - Pharmaceutical company.
Pay: $15 an hour – Happy with the pay -which is more than her colleagues
• Josh - middle manager in x company – in finance department - Pharmaceutical company.
Pay: $30 an hour - Dissatisfied with pay – less than his colleagues working in other
companies
Issue : O/I a < O/I b Under-rewarded (Equity Tension)
Referent : Other-outside, comparing outside employee & organization.
Result : Quit the job and Switch to competitors

Assumptions
Assumption 1
Shows that individuals are concerned towards others’ rewards in
comparison to their own.
Assumption 2
Each individual expects a fair and equitable output (return) against their input
(contribution at jobs).
Assumption 3
An individual decides what their ideal or equitable return should be based on
their equitable ratio with their colleagues’ input and output
Assumption 4
Low equity ratio perceives demotivation and dissatisfaction in existing job
Assumption 5
Low equity ratio Distorts inputs and/or outcomes psychologically, changing
inputs and/or outputs, or leave the organization.

Process for promoting organizational justice
• Employee motivation : Motivate employee with
non monitory awards and recognition, monitory
rewards and bonuses ultimately boost Morales
High level
of
employee
participatio
n
Low level of
employee
participatio
n
• Employee participation : Involvement in critical
business scenario , opportunity to assess an
individual ability to think, improves once
perception of justice
• Communication :Provides accurate and
timely feedback , improves interpersonal
and informational justice , builds trust

Process for promoting organizational justice
• Justice climate : Sharing personal views and
perception on organizational justices, positive
views promotes organizational justice
• Conduct employee surveys: Surveys to
assess the existing level of justice as per
employees perception
• Suggestion box : Invites the factual
information of organizational justice without
referring to any position

Effect of fair organizational justice
• Invite employee opinion in decision making : Employee participation boosts the
internal cohesiveness and employee feels being valued (Cropanzano, et al., 2016)
• Build trust in the team : Improves team spirit and creates dependency in team,
build trust for critical scenario
• Motivate employees for better productivity : Build positive attitudes amongst team
members and improves efficiency
• Promote organizational citizenship behavior : supports company decision and work
beyond scope of their job description
• Job satisfaction and improves organizational commitment : Positively related with
the perception of organizational justice

Synthesis and key take aways from theory
Distributi
ve Justice
Equal
distribution of
resources
Outcome and
decision
satisfaction
Procedur
al Justice
Taking
decision free
from biasness
Satisfaction in
existing
System
Interactio
nal
Justice
Interpersonal
and
interactional
justice
Positive
perception
regarding
relationships
Organisational Justice
• Employee feels valued and respected
• Promotes positivity and contribute in building
fair environment incompany
• Follows management decision with equal
respect
• Supports organisations success and failure
Organizational Justice Theory

Important to
pay
employees
according to
their input
Follow fair
and
transparent
processes
within
system
Invite
employee
opinion and
encourage
participation
Appropriate
mode of
frequent
communicati
on in team
Synthesis and key take aways from case
Regular
feedback from
employees and
Improvement
suggestion
Open door
policy and
conflict
management
procedures
Ethical and
social
consideration
while looking
at justice
Leadership and
motivational
aspects to be
considered
Ways to
promote
organizational
justice at
workplace
Results in
employee
satisfaction

Member contribution
• Introductory
slides and theory
• Example
• Insights from
case example
Student 1
Student 2
Student 3

References
• Cropanzano, D., E. Rupp, M., Thornton &
Shao, 2016. Organisational justice and
oraganisational citizenship. s.l.:Oxford
University Press.
• Robbins, Stephen & Judge, T., 2017.
Essentials of Organisation Behaviour.
s.l.:Pearson education limited.

Thank you
Any Questions Please???