Untangling procedural and distributive justice - Their relative effects on gainsharing satisfaction

Prior studies on fairness have investigated the conditions under which either procedural or distributive justice is more important to employees. One view holds that procedural justice is mom important when the outcome is group-based, and distributive justice is more important when an outcome is individual-based. The second view is that distributive justice is more important when an outcome is high or positive, and procedural justice is more important when an outcome is low or negative. This study examined the effects of procedural and distributive justice on satisfaction with gainsharing, which involves a group-based outcome. The study was conducted with tare firms, one representing a high payout condition and one a low- and zero-bonus payment. The results suggest that level of payout is important in the determination. Implications for research and for corporate gainsharing are discussed.