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- Title
PERFORMANCE-BASED REWARD SYSTEMS AND PERCEIVED JUSTICE: A CASE OF MOTORBIKE DEALER IN PONTIANAK.
- Authors
Brata, Handi; Juliana, Lita
- Abstract
This paper discusses the practices of reward granting and the performance measurement systems in Dealer X and examines its success factors from perspectives of perceived justice. To explore the practice in depth, we employ intensive case study method to illustrate how performance measurement and reward systems are intertwined in Dealer X that creates satisfaction of pay and the system itself and analyze the satisfaction level from the context of justice. The analysis is then grouped into, based on, four dimensions of perceived justice, namely procedural justice, distributive justice, informational justice and interpersonal justice. From this study, we find that employees' satisfaction toward existing systems is mainly driven by the perception of justice in their workplace. Furthermore, pay satisfaction is found to be more enhanced by the feeling of distributive justice because it relates with the amount of reward received. Since there is self-interest bias, distributive justice is more dominant than other dimensions to shape the total perception of justice. Therefore, the control system designers should be aware of and consider the dimensions of perceived justice when installing performance measurement and reward systems into organizations.
- Subjects
AUTOMATIC control systems; PERFORMANCE evaluation; DEALERS (Retail trade); PROCEDURAL justice; DISTRIBUTIVE justice
- Publication
International Journal of Business & Society, 2014, Vol 15, Issue 2, p195
- ISSN
1511-6670
- Publication type
Article