<abstract xmlns="http://www.w3.org/1999/xhtml"><p>The transformation in international business landscape has changed organizational management especially reward administration. This is done in order to maintain the organization’s competitiveness in global market place. In the field of reward administration, an emerging trend can be observed whereby most organizations are moving toward the application of psychological elements in administering organizational reward system. The ultimate objective of this study is to investigate the association between performance-based reward administration and interactional justice. The proposed model was empirically tested using a sample of 113 employees from fire and rescue agency in Peninsular Malaysia. This study found an evidence that performance-based reward administration (i.e., communication, participation and performance appraisal) is positively and significantly associated with interactional justice. This findings proves that the ability of administrators to appropriately implement communication openness, inspire participative decision-making and organize fairness performance appraisal in administering performance-based reward have significantly evoked the feeling of interactional justice when employees perceived that they are being fairly treated in the reward system.</p></abstract>

The transformation in international business landscape has changed organizational management especially reward administration. This is done in order to maintain the organization’s competitiveness in global market place. In the field of reward administration, an emerging trend can be observed whereby most organizations are moving toward the application of psychological elements in administering organizational reward system. The ultimate objective of this study is to investigate the association between performance-based reward administration and interactional justice. The proposed model was empirically tested using a sample of 113 employees from fire and rescue agency in Peninsular Malaysia. This study found an evidence that performance-based reward administration (i.e., communication, participation and performance appraisal) is positively and significantly associated with interactional justice. This findings proves that the ability of administrators to appropriately implement communication openness, inspire participative decision-making and organize fairness performance appraisal in administering performance-based reward have significantly evoked the feeling of interactional justice when employees perceived that they are being fairly treated in the reward system.

Performance-based Reward Administration Enhancing Employees’ Feelings of Interactional Justice

Studies in Business and Economics

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

The transformation in international business landscape has changed organizational management especially reward administration. This is done in order to...

Performance-based Reward Administration Enhancing Employees’ Feelings of Interactional Justice

Published Online: Jun 15, 2017

Page range: 5 - 18

DOI: https://doi.org/10.1515/sbe-2017-0001

Keywords
Communication, job satisfaction, participation, performance appraisal

© 2017 Azman Ismail et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Performance-based Reward Administration Enhancing Employees’ Feelings of Interactional Justice

Published Online: Jun 15, 2017

Page range: 5 - 18

DOI: https://doi.org/10.1515/sbe-2017-0001

KeywordsCommunication, job satisfaction, participation, performance appraisal

© 2017 Azman Ismail et al., published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Communication, job satisfaction, participation, performance appraisal