Publication Date

Fall 2015

Degree Type

Thesis

Degree Name

Master of Science (MS)

Department

Psychology

Advisor

Megumi Hosoda

Keywords

organizational justice, pay satisfaction

Subject Areas

Psychology; Organizational behavior

Abstract

Pay satisfaction has been linked to important organizational outcomes such as work performance and turnover intentions. One way to predict employees’ pay satisfaction is through organizational justice. The purpose of this study was to examine the role of organizational justice perceptions in predicting various pay satisfaction dimensions. A sample of 107 employees participated in an online survey. Consistent with the hypotheses, results showed that pay-related distributive justice perceptions were a stronger predictor of pay level satisfaction than pay-related procedural justice perceptions, and that benefits-related procedural justice perceptions were a stronger predictor of benefits determination satisfaction and benefits administration satisfaction than benefits-related distributive justice perceptions. Additionally, results showed that pay-related distributive justice perceptions and procedural justice perceptions significantly and equally predicted pay structure satisfaction, pay raises satisfaction, and variable pay procedure satisfaction, and that benefits-related distributive justice perceptions and procedural justice perceptions significantly and equally predicted benefits level satisfaction. These findings suggest that organizations should make fairness a priority when distributing compensation outcomes and making compensation decisions to maintain a high level of pay satisfaction.

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