The fairness of managerial pay can be judged in terms of its distributive justice properties and its procedural justice properties. While both types of justice have been studied extensively in the organizational literature, their relative importance in predicting work-related outcomes is still open to debate. In this paper, we provide field evidence that the relationship between pay justice and managers’ intrinsic motivation is moderated by pay transparency, which is the extent to which managers know each other’s pay levels. In a homogeneous sample of Brundi’s bank managers, we find that procedural justice is a better predictor of intrinsic motivation when pay transparency is low, and that distributive justice is a better predictor of intrinsic motivation when pay transparency is high. These findings that are congruent with fairness heuristic theory suggest the importance of considering pay transparency for understanding and designing fair managerial pay systems.
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In-Text Citation: (Joelle, 2018)
To Cite this Article: Joelle, K. E. (2018). The Moderation Effect of Pay Transparency for the Relationship between Justice Judgments and Intrinsic Motivation. International Journal of Academic Research in Business and Social Sciences, 8(12), 361–376.
Copyright: © 2018 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
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