Home > Risk-Taking > When fairness neither satisfies nor motivates: The role of risk aversion and uncertainty reduction in attenuating and reversing the fair process effect

When fairness neither satisfies nor motivates: The role of risk aversion and uncertainty reduction in attenuating and reversing the fair process effect

When fairness neither satisfies nor motivates: The role of risk aversion and uncertainty reduction in attenuating and reversing the fair process effect

Organizational Behavior and Human Decision Processes
Article in Press

Sreedhari D. Desai Harris Sondak and Kristina A. Diekmann

Abstract
It is widely acknowledged that procedural justice has many positive effects. However, some evidence suggests that procedural justice may not always have positive effects and may even have negative effects. We present three studies that vary in method and participant populations, including an archival study, a field study, and an experiment, using data provided by the general American population, Indian software engineers, and undergraduate students in the US. We demonstrate that key work-related variables such as people’s job satisfaction and performance depend on procedural justice, perceived uncertainty, and risk aversion such that risk seeking people react less positively and at times negatively to the same fair procedures that appeal to risk averse people. Our results suggest that one possible reason for these effects is that being treated fairly reduces people’s perception of uncertainty in the environment and while risk averse people find low uncertainty desirable and react positively to it, risk seeking people do not. We discuss the implications of our findings for theories of procedural justice including the uncertainty management model of fairness, the fair process effect, and fairness heuristic theory.

Highlights
► We examine effects of procedural justice on job performance and satisfaction. ► We find that procedural justice may sometimes fail to lead to positive effects. ► In particular, risk seekers are less likely to respond positively to fairness. ► We argue that bring treated fairly reduces perceived uncertainty. ► Risk seekers dislike this reduction in uncertainty.

Keywords: Procedural justice; Uncertainty; Risk aversion; Performance; Job satisfaction

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Categories: Risk-Taking
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