Procedural justice in promotion decisions: using perceptions of fairness to build employee commitment

Abstract

Although companies spend millions of dollars each year in their attempts to comply with fair employment laws, many firms continue to have problems with employees who perceive unfair treatment in promotion decisions. Procedural justice refers to the perceived fairness or equity of the procedures used in making decisions regarding the distribution of rewards, such as promotion. Previous research indicates a positive relationship between procedural justice and organizational commitment, but these findings relate to the effect of unfair selection decisions on organizational commitment, instead of specifically focusing on justice perceptions in promotion decisions. Because employee perceptions of unfairness may result in negative consequences for organizations, the purpose of this study was to examine the significance of procedural justice in promotion decisions in predicting organizational commitment. Regression analysis results indicate a significant main effect of the perceived fairness of the promotion‐decision system on organizational commitment. Implications for research and practitioners are discussed.