Building a ‘just’ organisation

Organisational justice refers to the extent to which people consider that their organisation allocates resources, makes decisions, and distributes rewards and punishments fairly (Cohen-Charash & Spector, 2001; Colquitt et al., 2005). Its roots are in equity theory, whereby employees expect a fair balance between what they believe they contribute (the input) and what they get in return (the output).

Inputs include hard work, skills and motivation, while outputs encompass respect and recognition as well as more tangible rewards such as salary and promotion opportunities. Making sure that practitioners perceive their workplace as fair will help to build a strong, collective sense of mission and vision.

Practitioners’ perceptions of organisational justice

Employees’ perceptions of justice generally fall into one of three categories:

• Distributive justice: where outcomes are in proportion to inputs. For example, salary, promotion and career opportunities should be relative to people’s training, experience and effort and not awarded through favouritism.

• Procedural justice: where processes that lead to outcomes are transparent. For example, practitioners have opportunities to contribute to decision-making. Activities outlined in this workbook (e.g. open-door policies, ‘walking the floor’ and Appreciative Inquiry) can all help to ensure that practitioners feel they have a voice. Another important aspect of procedural justice is that decisions and resource allocations are made consistently, neutrally, accurately and ethically.

• Interactional justice: where interpersonal interactions and treatment are perceived to be equitable. For example, the degree to which people in an organisation are treated with respect when procedures are implemented. Leaders should ensure information is presented:

• Truthfully (realistically, accurately and openly)
• Respectfully (practitioners are treated with dignity and courtesy), and
• With propriety (without prejudice such as racism or sexism)

Involving practitioners in shaping communications and gaining feedback before distributing more widely will help increase a sense of interactional justice in an organisation.

People who feel a stronger sense of organisational justice and fairness will be more satisfied, committed and trusting (Colquitt et al., 2001), and those who see their organisation as equitable also tend to be more physically and mentally healthy and have a better work-life balance (Robbins et al., 2012).

Research has found strong links between perceptions of organisational justice and employees’ mental health; a sense of workplace equity was found to help practitioners manage anxiety and reduce the negative effect of long-term role stress (Ndjaboue et al., 2012).

Conversely, injustice is a major source of work-related stress and burnout. A sense of unfairness can also be highly contagious, with serious implications for wellbeing and performance throughout the organisation. Feelings of injustice can also encourage ‘retaliation’ against the organisation such as gossip, bullying, reduced effort and minor theft (Robbins et al., 2012).

Employee voice

It is clearly important for leaders to be vigilant for signs of injustice in their organisation and encourage people to report any violations. Policies and procedures should be reviewed regularly to ensure they are equitable and do not disadvantage any groups or individuals.

If a perceived injustice has occurred, providing justification (an explanation or apology) at an early stage can reduce or eliminate any anger or frustration generated. Providing practitioners with an accessible, responsive and non-adversarial way to gain support and resolution is also crucial.

The importance of employee ‘voice’ is highlighted throughout KFP2 Sense of Appreciation, so making sure people have opportunities to suggest ways to promote organisational justice will be particularly beneficial. This might involve incorporating their views into performance appraisal systems, disciplinary procedures, conflict resolution processes, and selection and promotion criteria, as well any plans for organisational change. KFP5 Wellbeing also considers ways to work with groups of practitioners to identify sources of reward that can offset the demands they can experience.

For helpful guidance from the CIPD on the benefits of ‘employee voice’ and influence can bring to an organisation, see here.