Procedural justice criteria in salary determination

Abstract

Purpose The purpose of this research is to identify the dimensionality of the procedural justice construct and the criteria used by employees to assess procedural justice, in the context of salary determination. Design/methodology/approach Based on a survey of 297 Canadian workers, the paper uses confirmatory factor analysis (CFA) to test the dimensionality and the discriminant and convergent validity of our procedural justice construct. Convergent and predictive validity are also tested using hierarchical linear regressions. Findings The paper shows the multidimensionality of the procedural justice construct: justice of the salary determination process is assessed through the perceived characteristics of allocation procedures, the perceived characteristics of decision‐makers, and system transparency. Research limitations/implications Results could be biased towards acceptance; this is discussed. The results also suggest possible extensions to the study. Practical implications Knowledge of the justice standards improves the ability of organizations to effectively manage the salary determination process and promote its acceptance among employees. Emphasizes the need to adequately manage the selection, training, and perception of decision makers. Originality/value The paper identifies the standards of procedural justice for salary determination processes. It contributes to the theoretical literature by providing a new multidimensional conceptualization, which helps to better understand the psychological process underlying the perception of procedural justice. The presence of a dimension associated with decision makers is novel and critical for compensation studies.