Video Case Study

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6-2f Justice

Justice (Fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others) is fair treatment and due reward in accordance with ethical or legal standards, including the disposition to deal with perceived injustices of others. The justice of a situation is based on the perceived rights of individuals and on the intentions of the people involved in a business interaction. In other words, justice relates to the issue of what individuals feel they are due based on their rights and performance in the workplace. For this reason, justice is more likely to be based on deontological moral philosophies than on teleological or utilitarian philosophies.

Three types of justice provide a framework for evaluating different situations (see Table 6-3). Distributive justice (Based on the evaluation of the outcomes or results of a business relationship) is based on the evaluation of the outcomes or results of a business relationship. If some employees feel they are paid less than their coworkers for the same work, they have concerns about distributive justice. Distributive justice is difficult to effect when one member of the business exchange intends to take advantage of the relationship. A boss who forces his employees to do more work so he can take more time off would be unjust because he is taking advantage of his position. Situations such as this cause an imbalance in distributive justice.

Table 6-3

Types of Justice

Justice Type Areas of Emphasis

Distributive justice: Based on the evaluation of outcomes or results of the business relationship

Benefits derived Equity in rewards

Procedural justice: Based on the processes and activities that produce the outcome or results

Decision making process Level of access, openness, and participation

Interactional justice: Based on relationships and the treatment of others

Accuracy of information Truthfulness, respect, and courtesy in the process

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Procedural justice (Considers the processes and activities that produce a particular outcome) considers the processes and activities that produce a particular outcome. A climate that emphasizes procedural justice positively influences employees’ attitudes and behaviors toward work-group cohesion. The visibility of supervisors and the work groups perceptions of its own cohesiveness are products of a climate of procedural justice. When there is strong employee support for decisions, decision makers, organizations, and outcomes, procedural justice is less important to the individual. In contrast, when employees’ support for decisions, decision makers, organizations, or outcomes is not very strong, then procedural justice becomes more important. For example, property and casualty insurer Acuity has a corporate culture that focuses on employees. Acuity offers a number of employee incentives, including tuition reimbursement, unlimited sick days, and a strong 401 (k) plan. Long-tenured employees serve on committees and participate in the company’s strategic planning process. As a result of its strong employee culture, employee turnover at the firm is a mere 1 percent. Thus, Acuity uses methods of procedural justice to establish positive stakeholder relationships by promoting understanding and inclusion in the decision making process. The United Nations consumer protection guidelines adopt a highly procedural justice outlook with its concerns for safety, the right to be heard, and the right to privacy. Evaluations of performance not consistently developed and applied can lead to problems with procedural justice. Employee expectations of conditions with a high degree of procedural justice can weaken perceptions of integrity and create increased job tension. For instance, employees’ concerns about unequal compensation relate to their perceptions that the processes of justice in their company are inconsistent.

Interactional justice (Based on the relationships between organizational members, including the way employees and management treat one another) is based on the relationships between organizational members, including the way employees and management treat one another. Interactional justice is linked to fairness within member interactions. It often involves an individual’s relationship with the accuracy of the information a business organization provides. Although interactional justice often refers to how managers treat their subordinates, employees can also be guilty in creating interactional justice disputes. For example, many employees admit they stay home when they are not really sick if they feel they can get away with it. Such workplace absenteeism costs businesses millions of dollars each year.

All three types of justice—distributive, procedural, and interactional—could be used to measure a single business situation and the fairness of the organization and individuals involved. One study found that distributive justice is more important in shaping the total perception of justice. This may be because distributive justice relates to important considerations like pay satisfaction. In general, justice evaluations result in restitution seeking, relationship building, and evaluations of fairness in business relationships. Using the example of Sam Colt, Sam would feel obligated to tell all affected parties about the bolt defect rate and the possible consequences in order to create a fair transaction process.