Abstract
Injustice is a common phenomenon which has a negative impact on not only the employees’ job involvement, but also their career success, and ultimately has an undesirable impact on the organization. Furthermore, managers and employees mostly are concerned about pay situation among many factors that cause the perception of unfairness. Nowadays, the majority of studies empirically verified how pay dispersion between subordinate relationship affects employees’ behavior. Few scholars explained the relationship between perception of justice affected by pay dispersion and job involvement based on equity theory. Thus, this study helps enterprises to understand the employees’ psychological perception of pay dispersion, so that managers can balance the internal salary gap and ameliorate the employees’ justice perception, and motivate employees to involve into work.
Highlights
Establishing a motivating salary system related to employees working motivation is one of the core competitive capabilities in organizations
Few scholars explained the relationship between perception of justice affected by pay dispersion and job involvement based on equity theory
Economic benefits is one of resources of motivation of employees’ justice perception [11], When employees realize that current salary status quo (SQ) is fair compared to the minimum salary requirement in current position (MR) and the salary goal (G) that is pay dispersion, individuals will be more confident on achieving salary goal (G), more motivated as well as higher job involvement
Summary
Establishing a motivating salary system related to employees working motivation is one of the core competitive capabilities in organizations. In the past few decades, the majority of studies focused on pay dispersion between supervisors and subordinates based on tournament theory which points out that the wage increase associated with a given promotion will affect the motivation of employees who are below the job level. This study empirically verifies how pay dispersion affects individuals’ job involvement mediated by perception of justice based on equity theory, which supports a statement that less competitive bonus and pay dispersion, justice salary distribution encourage more cooperation among employees, and promote organizational performance. These scholars mainly focus on the impact of pay dispersion on employees’ perception of fairness as well as behavior. When employees can’t receive adequate perception of justice, they will reduce their job involvement at work [3]
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