Pay Administration

1. Pay Administration Procedural Justice © Nancy Brown Johnson 2005

2. Exercise: Think of Something that was unfair. • Write down what it is and why it was unfair.

3. Organizational Justice Defined: the perceived fairness of the organization • Distributive: outcome fairness • Procedural: process fairness • Interactive: how you perceive your interactions • Were you treated with dignity and respect • Were you given an adequate explanation

4. Procedural Justice • Influences citizenship behavior • Employees more likely to go above call of duty

5. Leventhal’s Six Attributes of a Fair Procedure • Consistent • Bias Free • Accurate • Correctable in case of error • Representative of all concerned • Based upon prevailing ethical standards

6. Elements of Administration • Culture: influences the interpretation of the compensation system • paternalistic, democratic, bureaucratic • general human resource philosophy • influences human resources: ASA-Attraction, Socialization, Attrition

7. Elements of Administration: Openness of Communication System • Information available • Information kept secret

8. Communications • Ask for employee input • jobs • labor markets • performance • Considerations • employee compensation expectations • benefits • administrative • equity perceptions

9. Pay Secrecy • Better when poor system • Better to communicate when good system

10. Employee Participation: Two ways to participate • System design • goals, major policies • System operation • how the system is carried out

11. Grievance Systems • Appeals procedures that allow employees to complain about compensation issues • Attitude surveys- that give employees the opportunity to voice complaints • Hot lines

12. Summary • Administrative issues influence commitment • Judged against backdrop of culture • Perceived fairness of system will influence employee willingness to engage in activities beyond job