COGNITIVE APPRAISAL AND PAY FAIRNESS PERCEPTION: THE MODERATING EFFECTS OF PREFERENCE FOR CONSISTENCY AND THE MERIT PRINCIPLE

Received:October 11, 2017  Revised:October 11, 2017

Key Words:  social comparison, deserved comparison, pay fairness, preference for consistency, preference for the merit principle

Author NameAffiliation
TAE-YEOL KIM China Europe International Business School 
JIE WANG* The University of Nottingham Ningbo China 
TINGTING CHEN Lingnan University 
YUE ZHU Zhejiang Gongshang University 
RUI SUN China Europe International Business School 

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Abstract:
      The latest theoretical advances provide an opportunity to extend the understanding of the forming of pay fairness by incorporating social and deserved comparisons. Results based on a sample of 167 employees demonstrated non-symmetric curvilinear relationships between social/deserved comparison and pay fairness. Specifically, pay fairness was low when employees received lower pay than similar others or than what they believed they deserved, increased as their pay exceeded that of a similar other or deserved pay to some extent, and then decreased when overpayment was considerable. In addition, results show the moderating effects of preference for consistency and the merit principle.

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