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Book part
Publication date: 23 September 2014

Chong M. Lau and Vimala Amirthalingam

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement…

Abstract

Research on how performance measurement systems affect employees’ perceptions of workplace fairness is important. As organizations often rely on their performance measurement systems to communicate information to their employees, it is useful to ascertain if and how the developments of performance measurement systems that are far more comprehensive than traditional financial systems affect employees’ perceptions of informational fairness through the information communicated to employees. Informational fairness refers to employees’ perceptions of workplace fairness that is based on the amount and the truthfulness of information that organizations provide to their employees. Based on a sample of managers from manufacturing organizations, the Partial Least Square results indicate that comprehensive performance measurement systems (comprehensive PMS) have a significant direct effect on job-relevant information. They also indicate that comprehensive PMS have an indirect effect on informational fairness via job-relevant information. In contrast, systems that are based on financial measures have no significant effects on job-relevant information and informational fairness. These results demonstrate how comprehensive PMS (through the communication of a greater amount of job-relevant information) can be used to engender employees’ perceptions of high workplace fairness.

Article
Publication date: 8 April 2020

Sumreen Masood Khattak, Muhammad Zahid Iqbal, Malik Ikramullah and Muhammad Mustafa Raziq

This study examines the relationship between employees' perceptions of informational fairness and project performance. Furthermore, it examines if this relationship is…

Abstract

Purpose

This study examines the relationship between employees' perceptions of informational fairness and project performance. Furthermore, it examines if this relationship is sequentially mediated by (1) knowledge sharing and role clarity and (2) communication openness and role clarity.

Design/methodology/approach

Data are collected from 302 full-time employees of seven project-based construction organizations in Pakistan. Data are analyzed through variance-based structural equation modeling technique and the Preacher and Hayes' bootstrapping procedure.

Findings

Results indicate that project employees' perceptions of informational fairness positively predict project performance. Moreover, this relationship is sequentially mediated by (1) communication openness and role clarity and (2) knowledge sharing and role clarity.

Originality/value

This study provides further insights on the informational fairness and project performance relationship by examining their underlying mechanisms. It draws on the much ignored context of Pakistan, and offers some implications for managers and researchers with regard to how behavioral factors may further enhance project performance.

Details

International Journal of Productivity and Performance Management, vol. 70 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 15 September 2020

Gemma Newlands and Christoph Lutz

The purpose of this study is to contribute to current hospitality and tourism research on the sharing economy by studying the under-researched aspects of regulatory desirability…

Abstract

Purpose

The purpose of this study is to contribute to current hospitality and tourism research on the sharing economy by studying the under-researched aspects of regulatory desirability, moral legitimacy and fairness in the context of home-sharing platforms (e.g. Airbnb).

Design/methodology/approach

Three separate 2×1 between-subjects experimental vignette surveys are used to test the effects of three types of fairness (procedural, interpersonal and informational) on two outcomes: moral legitimacy and regulatory desirability.

Findings

The results of the research show that high perceived fairness across all three types increases moral legitimacy and reduces regulatory desirability. Respondents who perceive a fictional home-sharing platform to be fair consider it to be more legitimate and want it to be less regulated.

Research limitations/implications

Following established practices and reducing external validity, the study uses a fictional scenario and a fictional company for the experimental vignette. The data collection took place in the UK, prohibiting cultural comparisons.

Practical implications

The research is useful for home-sharing platform managers by showing how they can boost moral legitimacy and decrease regulatory desirability through a strong focus on fairness. It can also help policymakers and consumer protection advocates by providing evidence about regulatory desirability and how it is affected by fairness perceptions.

Originality/value

The study adds to hospitality and tourism research by offering theoretically meaningful and practically relevant conclusions about the importance of fairness in driving stakeholder opinions about home-sharing platforms.

Details

International Journal of Contemporary Hospitality Management, vol. 32 no. 10
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 14 June 2021

Kevin Baird, Sophia Xia Su and Nuraddeen Nuhu

This study examines the mediating role of the fairness of performance appraisal on the association between the extent of use of strategic performance measurement systems (SPMSs…

Abstract

Purpose

This study examines the mediating role of the fairness of performance appraisal on the association between the extent of use of strategic performance measurement systems (SPMSs) with SPMS effectiveness.

Design/methodology/approach

Data were collected using an online survey distributed to 656 Australian middle and lower level managers.

Findings

The findings reveal that informational fairness mediates the association between SPMSs (link to value drivers and the use of multidimensional performance measures) with performance-related outcomes; procedural fairness mediates the association between SPMSs (link to strategy and the use of multidimensional performance measures) with staff-related outcomes and distributive fairness mediates the association between the use of SPMSs (all three types) with both performance and staff-related outcomes.

Originality/value

The study provides a unique insight into the importance of fairness (the distributive, informational and procedural fairness of the performance appraisal system) in mediating the associations between the extent of use of SPMSs and SPMS effectiveness. The findings contribute to the human resource management (HRM) “black box” literature by providing an insight into the behavioural mechanism through which a specific human resource management practice (i.e. the SPMS) influences organisational performance.

Article
Publication date: 13 February 2017

Ateeque Shaikh, Saswata Narayan Biswas, Vanita Yadav and Debiprasad Mishra

The purpose of this paper is to develop, test and validate a measure of fairness in the context of franchisor-franchisee relationship and test for the dimensionality of fairness.

Abstract

Purpose

The purpose of this paper is to develop, test and validate a measure of fairness in the context of franchisor-franchisee relationship and test for the dimensionality of fairness.

Design/methodology/approach

The authors surveyed 300 franchisees of a large-scale franchisor in India. The authors employ confirmatory factor analysis (CFA) to analyse the data.

Findings

The authors tested four models of the fairness construct through CFA using structural equation modelling. The three-factor corrected model of the fairness construct exhibits comparatively better goodness of fit indices as compared to the other correlated models of the fairness construct. It clears the threshold level of validity and reliability test. The findings of the study suggest that the factor structure of fairness is three-factor correlated model with aspects of procedural fairness and informational fairness getting subsumed into one construct.

Research limitations/implications

Factor structure of fairness construct differs with earlier empirical research findings with both interpersonal fairness and informational fairness subsuming into each other to form one construct.

Practical implications

This measure can be utilized by franchisee managers to track perceptions of fairness among franchisees to manage the franchise relationship in a better way. Franchisees expect information sharing from the franchisor and not the representative of the franchisor.

Originality/value

To the best of the authors’ knowledge, this study is the first to develop a valid and reliable measure of fairness construct in the context of franchise relationship. This study also identifies factor structure of fairness construct.

Details

International Journal of Retail & Distribution Management, vol. 45 no. 2
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 13 October 2020

Jee Eun Lee and Sang Suk Lee

The purpose of this study is to examine the effects of fairness on relationship quality and re-contract intention in the foodservice franchise industry and this paper intends to…

Abstract

Purpose

The purpose of this study is to examine the effects of fairness on relationship quality and re-contract intention in the foodservice franchise industry and this paper intends to delineate the implications of enhancing the mutual relationship between the franchisor and the franchisee in the future domestic foodservice franchise system.

Design/methodology/approach

To prevent the lack of reliability and to pursue the internal consistency of the measurement model, this study adopted SPSS (Ver.20.0) and derived Cronbach’s alpha. Additionally, this study conducted a confirmatory factor analysis by using AMOS (Ver.20.0) program to assess the unidimensionality of measurements. Finally, structural equation modeling was used to test the hypothesized research framework.

Findings

The results showed that distributive fairness and informational fairness increase the relationship quality, which franchisees perceive under the franchise system. Among the relationship quality factor, only the trust has a considerable impact on the (performance) re-contract intention. The effect of fairness on relationship quality does not show a statistically considerable difference between the two groups (global franchise vs domestic franchise). However, in terms of a global franchise, distributive fairness has a significant impact on relationship quality, whereas domestic franchise, distributive fairness directly affects performance (re-contract intention).

Research limitations/implications

This study provides readers with an effect of fairness in the franchise system. Results obtained in this study are useful for understanding the fairness and relationship quality in the franchise system.

Practical implications

Recently, as the foodservice franchise market is experiencing significant growth, government and franchise-related agencies are making considerable effort to improve the relationship between the franchisor and the franchisee and to offer a better system and policy concerning the protection of consumers. Government and franchise agencies should develop an adequate policy to improve the relationship between the franchisor and the franchisee by breaking away from the imprudent support.

Originality/value

This study investigates whether fairness in the franchise system has a significant effect on the relationship quality and the performance (re-contract intention) and provides implication about the mutual growth between franchisor and franchisee to the potential food service franchise in Korea.

Details

Management Research Review, vol. 44 no. 3
Type: Research Article
ISSN: 2040-8269

Keywords

Article
Publication date: 19 June 2019

Xiaoyun Han, Shujie Fang, Lishan Xie and Junfeng Yang

The purpose of this paper is to investigate the relationship between service fairness and customer satisfaction, and test the mediation role of customer psychological empowerment…

Abstract

Purpose

The purpose of this paper is to investigate the relationship between service fairness and customer satisfaction, and test the mediation role of customer psychological empowerment in this relationship.

Design/methodology/approach

A cross-sectional empirical study is designed to test the research model. Customers of retail bank in South China are surveyed. Regression analysis and structural equation model analysis are done with SPSS 21.0 and LISREL 8.72 separately.

Findings

The results indicate that: first, service fairness increases customer satisfaction. Specifically, distributive fairness, procedural fairness and interactional fairness affect customer satisfaction positively and directly, while informational fairness affects customer satisfaction indirectly. Second, customer psychological empowerment fully mediates the relationship between informational fairness and customer satisfaction, while plays a partial mediating role between distributive fairness, procedural fairness, interactional fairness and customer satisfaction. Third, four kinds of service fairness have different influences on three dimensions of customer psychological empowerment.

Practical implications

The findings provide suggestions for managers to improve customer psychological empowerment by treating customer fairly, and to increase customer satisfaction through empowering customer in services, especially for state-owned banks.

Originality/value

It is recognized that service fairness leads to customer satisfaction in marketing literature; however, the empirical research studies about this are rare. This research not only contributes to service fairness theory, but also enriches our understanding of customer empowerment in service process.

Details

Journal of Contemporary Marketing Science, vol. 2 no. 1
Type: Research Article
ISSN: 2516-7480

Keywords

Article
Publication date: 9 April 2021

Sophia Xia Su, Kevin Baird and Nuraddeen Nuhu

This study aims to examine the mediating role of the fairness of the performance evaluation system on the association between the controllability of financial and non-financial…

Abstract

Purpose

This study aims to examine the mediating role of the fairness of the performance evaluation system on the association between the controllability of financial and non-financial measures and managerial performance.

Design/methodology/approach

Data was collected using an online survey questionnaire, with 220 responses received from middle and lower-level managers in Australian manufacturing organisations. Covariance-based structural equation modelling using software AMOS 25 was applied to analyse the data. Specifically, Anderson and Gerbing’s (1988) two-step approach was followed with confirmatory factor analyses first conducted to ensure that the measurement model was valid and reliable before running the structural model.

Findings

The findings reveal that the influence of managers’ controllability of performance measures on managerial performance is enacted through their perceptions of fairness. Specifically, the impact of controllability of financial (non-financial) measures on managerial performance is enacted through managers’ perceptions of distributive (interpersonal) fairness.

Originality/value

The empirical findings contribute to the literature investigating the empirical consequences of managers’ controllability of performance measures on performance evaluation processes, with the results revealing that the controllability of both financial and non-financial performance measures is positively associated with managerial performance via managers’ perceptions of different dimensions of fairness. Such results suggest that organisations, most of which do not prioritise the use of controllable performance measures in the design of their performance evaluation systems, need to reconsider the importance of the controllability of both financial and non-financial measures in the performance evaluation processes.

Article
Publication date: 12 April 2019

Melinda Laundon, Abby Cathcart and Paula McDonald

Employee reward is central to contemporary debates about work and employment relations; and in the context of ongoing wage stagnation, benefits represent a growing proportion of…

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Abstract

Purpose

Employee reward is central to contemporary debates about work and employment relations; and in the context of ongoing wage stagnation, benefits represent a growing proportion of total reward value. Past studies have shown that when employees perceive benefits as unfair, this has a negative impact on engagement, performance and retention. Yet no previous studies have explored the components of a benefits system that influence employees’ fairness concerns. Using organisational justice as a theoretical lens, the purpose of this paper is to examine how dimensions of an employee benefits system influence the fairness perceptions of employees.

Design/methodology/approach

This paper reports on a qualitative, inductive case study of the benefits system in a large finance and insurance company, drawing on three data sources: interviews with the company’s benefits managers, organisational documents and open-text responses from a benefits survey.

Findings

Three dimensions of the benefits system strongly influenced fairness perceptions – constraints on accessing and utilising benefits; prosocial perceptions about the fairness of benefits to third parties; and the transparency of employee benefits.

Practical implications

The study informs organisations and benefits managers about the important role of supervisors in perceived benefits usability, and how benefits may be managed and communicated to enhance employee fairness perceptions.

Originality/value

This study makes a conceptual contribution to the benefits literature through a detailed exploration of the type of organisational justice judgements that employees make about benefits; and identifying for the first time prosocial fairness concerns about the impact of benefits on third parties.

Details

Employee Relations: The International Journal, vol. 41 no. 4
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 10 August 2012

Yu‐Qian Zhu and Houn‐Gee Chen

The purpose of this paper is to explore and empirically test fairness in predicting online customer satisfaction in the internet banking context. The paper also aims to further…

6085

Abstract

Purpose

The purpose of this paper is to explore and empirically test fairness in predicting online customer satisfaction in the internet banking context. The paper also aims to further explore the mechanism through which fairness influences customer satisfaction online, i.e. identifying the mediators.

Design/methodology/approach

A survey is used to validate a research model based on equity theory and relationship marketing theory that incorporates fairness, trust, perceived value and customer satisfaction. A total of 331 surveys were analyzed using Partial Least Square.

Findings

In internet banking, fairness that includes distributive fairness, procedural fairness and informational fairness is positively related to customer satisfaction. Trust is identified as the key mediator of fairness to customer satisfaction.

Research limitations/implications

In an online context, where human interactions are replaced by graphic user interfaces, fairness still plays an important role in customer satisfaction. Further comparison of online and offline context could be conducted.

Practical implications

For online service managers, it is crucial to incorporate the fairness perspective into operations, which involves topics like segmented marketing efforts, consistency in procedures, and providing ample information to customers.

Originality/value

This research is one of the first attempts to examine fairness in internet banking, as well as to delineate the mediating process of fairness to satisfaction online.

Details

Internet Research, vol. 22 no. 4
Type: Research Article
ISSN: 1066-2243

Keywords

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