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Organizational equity perceptions, employee job satisfaction, and departmental absence and turnover rates
ORGANIZATIONAL BEHAVIOR AND HUMAN PERFORMANCE 24, 29--40 (1979)
Organizational Equity Perceptions, Employee Job Satisfaction, and Departmental Absence and Turnover Rates JOHN E.
DITTRICH
University of Colorado AND MICHAEL R. CARRELL
University of Louisville E m p l o y e e job satisfaction and perceptions of equitable treatment have been the topics of a great a m o u n t of behavioral research. Several theorists have suggested that one or the other m a y be related to organizational behaviors of e m p l o y e e s such as a b s e n c e and/or turnover. This longitudinal s t u d y e x a m i n e s the association of the two constructs, and, in a field setting, c o m p a r e s them as separate variables relating to a b s e n c e and turnover. E m p l o y e e perceptions of equitable t r e a t m e n t were found to be stronger predictors of a b s e n c e and turnover than were job satisfaction variables.
Extensive reviews of equity research by Lawler (1968), Pritchard (1969), Goodman and Friedman (1971), Adams and Freedman (1976), and Carrell and Dittrich (1978) have observed that Adams' (1965) equity theory has received considerable support in laboratory studies. There have been only a very limited number of field studies which identify dimensions of perceived equity, validate the equity norm, or study the longitudinal effects of equity and inequity. Equity theory assumes that employees compare their job inputs and outcomes with those of coworkers or reference groups. Employees who perceive themselves in an inequitable situation will seek to reduce the inequity by one or more of several methods which include absenteeism and turnover (Adams, 1965). The research on job satisfaction reviewed by Brayfield and Crockett (1955), Herzberg, Mausner, Peterson, and Capwell (1957), Vroom (1964), and Porter and Steers (1973) considers satisfaction in two ways. As an independent motivating variable, satisfaction is seen causally associated with productivity [Herzberg et al., (1957) and numerous studies reviewed by Brayfield and Crockett (1955) and Schwab and Cummings (1970)] or other dependent variables such as absence and turnover (Porter & Steers 1973). A second view of job satisfaction is as a somewhat more dependent R e q u e s t s for reprints should be sent to John E. Dittrich, College of B u s i n e s s and Administration, University of Colorado at Colorado Springs, Colorado Springs, CO 80907. 29
0030-5073/79/040029-12502.00/0 Copyright © 1979by AcademicPress, Inc. All rights of reproduction in any form reserved.
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AND CARRELL
variable, one which represents a longer term desirable motivational state, (French, 1974, pp. 112-113; Argyle, 1972, p. 223), dependent upon productivity, the rewards system, and perceptions of the equitability of such rewards. (Vroom, 1964, Lawler & Porter, 1968). Despite the close relationship seen between the concepts of job satisfaction and perceptions of equity, research on equity theory has almost entirely concentrated upon the behavioral consequences of inequity without concern for dissatisfaction, and has been conducted in the laboratory, a milieu in which perceptions of either inequity or dissatisfaction may be seriously limited or contrived. The purpose of this study is to explore the association and relative strength of the equity and job satisfaction constructs and their dimensions through field research. A brief review is conducted of the literature dealing in the relationships seen existing between perceptions of equity, job satisfaction, absence, and turnover. Two field studies bearing on these relationships are then discussed in some detail. Following this review, the equity dimensions are examined as variables useful in predicting overall job satisfaction. Data are then presented which empirically compare the equity dimensions and job satisfaction as separate variables relating to absence and turnover.
Conceptualized Relationships: Equity, Satisfaction, Absence, Turnover Adams (1965) proposes that perceived inequity is a source of tension which results from Input-Outcome discrepancies relative to some comparison Other and that the greater the feeling of inequity, the greater the drive to reduce the tension. He then states that inequity results in "dissatisfaction in an unpleasant emotional state" and that in addition there will be other effects of the tension arising from perceptions of inequity. To reduce perceived inequity a person may alter job inputs or outcomes, may cognitively distort inputs or outcomes, may leave the field, may act on another person, and may change the object of his comparison. Both absenteeism and turnover, as forms of withdrawal behavior, could represent a reduction in effort or leaving the field, two of these six forms of inequity resolution. Vroom (1970) also sees a strong conceptual link between perceptions of equity and job satisfaction and notes that satisfaction is "determined solely by the rewards he derives (outcomes) and the costs (inputs) he incurs from that membership" (p. 204). Porter and Steers (1973) see job satisfaction as an intervening variable. Equity comparisons serve to determine the degree of satisfaction or dissatisfaction which then apparently input into decisions to remain or to search for other job alternatives (pp.
156-157). March and Simon (1958) postulate that an overall balance of inducements utilities to contributions utilities affects the propensity to leave the
ORGANIZATIONAL
PERCEPTIONS
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organization. Three factors are cited as having an impact upon job satisfaction which in turn affects the perceived desirability of movement and subsequently the likelihood of movement. The three factors are: (1) conformity of job characteristics of the self-characterization held by the individual, (2) predictability of instrumental relationships on the job, and (3) the compatibility of work requirements with the requirements of other roles (March & Simon, 1958, pp. 94-95). These authors, therefore, also see a linked relationship between various inducements and contributions, job satisfaction, and decisions to participate or withdraw. Equity Research Field Studies Five field studies provide empirical support to the notion of an equity norm. Schuster and Clark (1970) found that employees try to balance pay with performance, and that older, higher paid, less educated, better performers feel more satisfied with their pay. Zedeck and Smith (1968) found that employees tend to assess equity based upon an "internal standard." Hinrichs (1969) found that perceptions of equitable pay are significantly affected by current pay level and earnings potential as assessed by education, age, and sex. The equity norm is further supported by Finn and Lee (1972) who found that for a low-relative compensation group the components of the equity model account for a substantial portion of the perceived inequity. In a longitudinal field study Carrell (1978) found that employee perceptions of equitable treatment were affected when an organization altered its pay system which resulted in pay increases for about 50% of its employees. However, the inequity perceptions diminished after a nine month period. Only two field studies have examined relationships between perceptions of equity and job satisfaction and turnover. Klein (1973) selected a large random sample of blue collar workers, then assessed their feelings of overall job satisfaction by means of four empirically selected questions and used high and low values (only) of three independent variables: reinforcement (two questions), expectancy (two questions), and equity (three questions). Three-way analysis of variance on the polarized independent variables revealed differences in overall job satisfaction between high and low equity groups significant at .01 or better in all three pay categories. Reinforcement was not found to be a significant independent variable. Klein notes that in using the entire population in a multiple regression model on overall job satisfaction, first order partial correlations for reinforcement, equity and expectancy range from .11 to .26 with an R 2 of almost .25 (significance level not reported), (Klein, 1973, footnote p. 604). In the research of Telly, French, and Scott (1971) relating equity to turnover, significantly higher (p < .001) average scores for perceptions of equity in five of eight areas of work environment measured (supervision, leadmen, working condition, intrinsic and social aspects) were found
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among employees in low turnover shops when compared to average scores for a similar random sample of employees in high turnover shops. Relationships among those variables were not studied, but the study suggests that turnover may be one method used by employees to alleviate perceived inequity. The causal link between equity, satisfaction, and absence or turnover has thus been strongly suggested. Research on job satisfaction and equity, however, has not as yet examined relationships between these variables or compared their strengths as predictors of absence or turnover.
METHOD
Sample The sample consisted of 158 clerical employees in 20 departments of a large metropolitan area office. Eighty-three percent of respondents were female, predominantly of urban backgrounds. Over 40% were 25 years in age or younger, while the ages of the remainder ranged evenly to more than age 65. Over three quarters of respondents had been in their present job less than one year, and more than 80% fell into two pay categories. Departments ranged in size from a low of three employees (four departments) to a high of 16 (two departments). Individual questionnaires were used to obtain perceptions of equity and feelings of job satisfaction. The response rate for completed questionnaires was in excess of 90% overall, and in each department. Personnel records were the source of departmental absence and turnover figures.
Measures The Organizational Fairness Questionnaire (Dittrich & Carrell, 1976) is a 31-question, pencil and paper instrument designed to assess employee perceptions of equity or inequity. Responses range from "Strongly Agree" to "Strongly Disagree" in a five-point neutral-center scale to statements of the form: "The rules for giving pay raises are not fair to some employees." Five dimensions were factorially derived from an original set of 43 questions. Reliability analysis on the factored dimensions resulted in the deletion of 12 questions which had item to total correlations below .30. Definitions of the factored dimension, alpha reliability coefficients, and sample statements are shown in Table 1. The instrument was specifically designed for field research by allowing individuals to report their own perceptions of the net balance of the I/O ratio based upon internally derived standards. This method has been suggested by several equity researchers (Carrell & Dittrich, 1978; Goodman, 1974; Lane & Messe, 1972; Zedeck & Smith, 1968). The instrument had displayed evidence of construct validity and reliability in previous field research (Dittrich & Carrell, 1976).
ORGANIZATIONAL PERCEPTIONS
33
TABLE 1 ORGANIZATIONALFAIRNESS QUESTIONNAIREDIMENSIONS DEFINITIONS~ RELIABILITY COEFFICIENTS, AND SAMPLE STATEMENTS
PAYRULES (nine questions). Perceptions of the fairness of one's play relative to one's coworkers and the fairness of the rules for granting pay increases and promotions. Alpha = .89. Sample Statement: "The rules for giving pay raises are not fair to some employees." PAYADMIN (five questions). Perceptions of the fairness of the supervisor in administering the rules for pay raises and promotions. Alpha = .84. Sample Statement: " M y supervisor rates people unfairly in considering people for promotion." WORKPACE (eight questions). Perceptions of the fairness of the supervisor in maintaining a fair pace of work activity. Alpha = .79. Sample Statement: " M y supervisor sees to it that all of us meet work standards." PAYLEVEL (five questions). Perceptions of the fairness of one's pay relative to other's pay outside of the employing organization. Alpha = .70. Sample Statement: "Other companies in this area pay people doing my kind of job less than I am getting paid." RULEADMN (four questions). Perceptions of the fairness of supervisors in maintaining acceptable forms of general behavior in the workplace. Alpha = .71. Sample Statement: "My supervisor allows workers to tease other employees, be late to their work stations, and to act improperly in other ways."
The 20-item short form of the Minnesota Satisfaction Questionnaire (Dawis, England, & Lofquist, 1968) was used to assess employee feelings of job satisfaction. Factors labeled Intrinsic and Extrinsic Satisfaction have been identified in applications of this instrument. Intrinsic Satisfaction (12 Questions) includes questions on satisfaction with the Moral Values, Security, Social Service, Autonomy, Ability Utilization, Responsibility, Creativity, Achievement, and Activity associated with the job. Extrinsic Satisfaction (Six Questions) includes expressions of satisfaction with Supervision-Technical, Supervision-Human Relations, Company Policies and Practices, Compensation, Advancement, and Recognition. General Satisfaction (20 Questions) includes the variables mentioned above and adds feelings about Working Conditions and Co-Workers. Standardized item alpha reliability coefficients of .93, .83, and .95 were found for INTRINSIC, EXTRINSIC, and General Satisfaction measures respectively. Detailed departmental absence and turnover data were collected from personnel records for the 11 months immediately following the questionnaire administration. Total hours of absence per department for each of the 11 months were standardized for department size by computing absence hours per employee for each department. Total turnover (all voluntary) was also taken from personnel records, and was similarly standardized. Newly hired employees who did not complete the questionnaires were excluded from the absence and turnover data.
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Analytical Procedures Perceptions of equity and expressions of satisfaction represent unique sets of responses of individuals to tasks, working conditions, supervisors, and reward systems. Analysis at the level of the individual is required, therefore, and stepwise multiple regression of the five fairness variables on overall job satisfaction was used to construct combinations of individual equity perceptions as predictors of individual employee satisfaction. The necessity for anonymity of responses in this study precluded the use of individual absence or turnover data. Aggregation of individual responses at departmental level was needed for comparison with standardized departmental absence and turnover rates. While perceptions and feelings are individual in origin, the influence of one's peers and one's supervisor may contribute a unique departmental effect. In examining the measures, three of the five equity variables (PAYADMIN, WORKPACE, and RULEADMN) measure characteristics of the supervisor, a factor common to all members of a given department. The supervisor and co-workers also have an effect on employee perceptions of equity by either providing or withholding information and by means of personal persuasion. Thus, the aggregation of perceptual information by department has conceptual soundness in identifying individual responses to common experiences, a rationale supported by Cronback (Note 1). Empirical support for the use of the mean as an aggregative measure can be provided by an examination of between and within departments variance. One-way analysis of variance of each dimension by TABLE 2 MULTIPLE REGRESSION: FIVE FAIRNESS VARIABLES ON GENERAL SATISFACTION, STEPWISE INCLUSIONn = 126 ~
Variable
Mult R
PAYRULES WORKPACE Constant
.563 .581 31.68
Variables in the equation Unstd B Std Beta Std Error B .762 .498 .362 .158 Multiple R = .581
F (Each Var)
.123 .184
38.4 3.9 F = 31.34
Variables not in the equation
Variable PAYADMIN PAYLEVEL RULEADMN
Multi R (if included)
Beta (if included)
Partial corr. coeff, (if included)
F Value each var. (if included)
.582 .583 .583
.010 - .048 -.038
.010 -.048 -.036
.012 .280 .156
Reduced from 158 as the result of listwise deletion of an entire case for data missing on any of the 51 questions.
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department revealed highly significant differences (p < .01) in means between departments on all eight measures. The use of a departmental level of analysis for studying the predictive power of equity and job satisfaction on employee absence and turnover rates, however, required a change in the analytic technique employed. Given seven independent variables and an n of 19 departments (absence and turnover data were not available for Department 6), simple regression of each variable on departmental absence and turnover rates, rather than stepwise multiple regression, was viewed as an adequate and conservative treatment of the data. SPSSH (Nie, Hull, Jenkins, Steinbrenner, & Bent, 1975) was used for all computations. RESULTS
1. Equity dimensions and job satisfaction. The stepwise multiple regression procedure for regressing five equity dimensions on General Satisfaction was stopped after the entry of the two predictor variables PAYRULES and WORKPACE. The two-predictor equation is significant atp < .01 as are the betas for each of the two variables entered. As can be seen in Table 2, beta weights and F values for the remaining three variables are very low at this step, and their addition to the equation would add very little to the proportion of variance explained. TABLE 3 BIVARIATE REGRESSION ANALYSIS; JOB SATISFACTIONAND FAIRNESS DIMENSIONS ON EMPLOYEE ABSENCE
Variable
R
GENSAT
-.216
INTSAT
-.444
EXTSAT
-.260
PAYRULES
-.467
PAYADMIN
-.292
WORKPACE
-.384
PAYLEVEL
-.583
RULEADMN
-.495
OAFAIR
-.479
* p < .05. **p < .01.
Analysis of variance Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual
D.F.
S.S.
F
1 17 1 17 1 17 1 17 1 17 1 17 1 17 1 17 1 17
1132 23107 4786 19454 1642 22598 5281 18959 2068 22171 3573 20666 8229 16011 5939 18301 5552 18688
.83 4.18 1.24 4.74* 1.58 2.94 8.74** 5.52* 5.05*
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D I T T R I C H AND CARRELL
2. Equity and satisfaction as predictors of absence and t u r n o v e r . Results of the procedure in which mean equity perceptions and job satisfaction scores were regressed on absence and turnover data are found in Tables 3 and 4. All equity and job satisfaction dimensions correlate negatively with absence, a finding consistent with earlier theoretical and empirical research. Three of the five equity dimensions are significant predictors of e m p l o y e e absence; P A Y L E V E L at r = .58 (p < .01), R U L E A D M N at r = .49 (p < .05), and P A Y R U L E S at r = .47 (p < .05). Intrinsic satisfaction, at r = .44 (p < . 10), is the only satisfaction measure to show regression approaching significance. The interrelationship of the two criterion variables was examined by means of simple correlation. A positive coefficient r of .53, significant at (p < .01) was obtained for the correlation of departmental absence and departmental turnover. The strength of all satisfaction and equity variables in predicting departmental turnover is much lower and less significant than in predicting departmental absence. P A Y L E V E L , at r = .42 (p < .10), is the only measure of the nine which has a regression on departmental turnover approaching significance. DISCUSSION Equity-Satisfaction Relationship In the regression of equity on satisfaction, P A Y R U L E S and WORKPACE are together the most significant fairness elements affecting the TABLE 4 BIVARIATE REGRESSION ANALYSIS: JOB SATISFACTIONAND FAIRNESS DIMENSIONS ON EMPLOYEE TURNOVER (n ~ 19 DEPARTMENTS)
Variable
R
Analysis of variance
D.F.
S.S.
F
GENSAT
-.282 - . 172
1 17 1 17
EXTSAT
-.316
.172 1.993 .064 2.101 .216 1.949
1.47
INTSAT
Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual
1
.071
.58
17
2.094 .138 2.028
1.13
1
.018
.15
17 1 17
2.147 .388 1.777 .021 2.144 .105 2.060
PAYRULES PAYADMIN WORKPACE
-.033 -.252 -.093
PAYLEVEL
- .424
RULEADMN
- .098
OAFAIR
-.221
1 17
1 17
1 17 1 17
.52 1.87
3.72 .16 .87
ORGANIZATIONAL
PERCEPTIONS
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expressed satisfaction of employees. These findings indicate that job satisfaction is most strongly influenced by equity comparisons made inside rather than outside the organization since both PAYRULES and WORKPACE are internal organizational comparisons. This result is consistent with the findings of Zedick and Smith (1968). The relationship of these dimensions to job satisfaction found here can be seen as support for the March and Simon (1958) assertion that "Predictability of Job Relationships" and "Conformity of Job to Self Image" as bearing directly on satisfaction with the job (p. 94). Predictability of job relationships may be related to several of the equity variables, but can be explained in terms of both P A Y R U L E S and WORKPACE. In inputs/outcomes ratio terms, PAYRULES relates directly to the reward structure, or outcomes, and WORKPACE to individual effort, or inputs. A pay structure and rules (e.g., PAYRULES) inconsistent in its rules (and thereby perceived as unfair) would not enable employees to predict present and future pay relationships. Similarly, a supervisor inconsistent in maintaining a fair pace of work (e.g., WORKPACE) would thereby prevent employees from predicting job relationships. A consistent but unfair pay structure, or a consistently unfair supervisor would permit prediction, but would result in an employee suffering a chronically inequitable situation. In both of these chronically unfair situations, the employee's self-image (one of several inputs in Adam's model) is not accorded an appropriate outcome in the form of pay treatment. Thus chronic inequity perceived by employees is a way of describing a low degree of conformity of job to self-image, and can result in lower levels of job satisfaction as well as attempts to reduce tension by changes in effort or withdrawal.
Equity-Absence and Turnover Relationship Employee satisfaction measures in this sample did not relate significantly to employee absence or turnover. Employee perceptions of equity, however, demonstrated a significant relationship to absence. Absence in turn had a significant relationship to employee turnover. The findings on perceptions of equity support the conceptual framework of the equity model (Adams, 1965) and earlier research. Absenteeism can serve as withdrawal, and also as a form of reduction of effort, particularly where the pace of work is closely controlled by technology or by supervision, Withdrawal by means of continued absences also has the effect o f " r e ducing the habituation, increasing the propensity to search for alternative work opportunities and increasing the salience of the extra-organizational work alternatives" (March & Simon, 1958, p. 105). The continued perception of inequity, therefore, can indirectly result in turnover. Perceived equity of pay level (compared externally) also affects turnover through direct, but external, comparison of inputs and outcomes, a comparison
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which can lead to job change decisions. The low predictive strength of all variables, job satisfaction and perceptions of equity, lends support to the argument that while absence and turnover originate from the same feelings, the decision to permanently withdraw may be more directly affected by opportunity; that is, by the perceived possibility of intra-organizational work transfer and by the number of extra-organizational alternatives perceived (March & Simon, 1958, p. 105).
Intervening Variable Model The intervening variable model which relates equity perceptions and job satisfaction to withdrawal behavior can be explored by an examination of the results displayed in Tables 2, 3, and 4. The model suggests that equity perceptions lead to feelings of satisfaction which in turn lead to absence or turnover. If perceptions of equity directly affect job satisfaction, then a positive correlation should be found between these variables. The model would also suggest that the more direct relationship between satisfaction measures and withdrawal should be reflected in higher correlation coefficients between satisfaction and absence and turnover than between equity perceptions and these two variables. Consistent with the model, the data in this study reveal that a strong relationship exists between equity perceptions and job satisfaction measures. Contrary to the relationships posited by the model, however, several dimensions of equity perceptions are found to relate more strongly to absence (Table 3) than do feelings of job satisfaction. The data found in Table 4 relating satisfaction and equity perceptions to turnover are similar, but are not statistically significant and must be regarded as inconclusive. The findings may in part have been the result of differences in the focus of the two instruments. Employee satisfaction, as measured by the Minnesota Satisfaction Questionnaire, includes factors not addressed in the measurement of perceptions of equity, factors such as the intrinsic nature or value of the work itself. The lack of support for the model seen here may, therefore, reflect the broader array of elements measured by the job satisfaction instrument rather than providing a clear refutation of the intervening variable model. SUMMARY Employee withdrawal behaviors, so costly in terms of training, recruitment, and organizational dislocation, remain elusive and difficult to predict. A statistically significant predictive relationship with absence was found for three of the five fairness variables but not for any of the three job satisfaction measures. None of the fairness or satisfaction variables demonstrated statistically significant predictive strength on turnover, despite a supportive theoretical base and careful measurement of predictor and criterion variables.
ORGANIZATIONAL PERCEPTIONS
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Dimensionalized perceptions of equity displayed several interesting and significant predictive relationships. Their effects seem more important in organizational behavior than had been suspected, and are deserving of more research attention. Internally oriented equity perception dimensions were strongly related to job satisfaction, but externally oriented equity perceptions demonstrated a much stronger relationship to withdrawal behavior of both types. These results suggest that further theoretical development involving equity, job satisfaction, and withdrawal behaviors may call for a more careful definition of the foci of equity perceptions and greater specificity in expressions of job satisfaction if sound hypotheses are to be framed for testing. Continued exploration of the intervening variable model by comparing the relative predictive power of equity perceptions and job satisfaction should shed additional light on the linkage between equity, satisfaction and withdrawal, and may provide additional insights into the credibility of the intervening variable model. Research examining organizational equity variables and other criterion measures should also be undertaken. Of special interest are departmental grievance levels, performance, quality, and accident rates. Finally, experimental field studies addressing changes in levels of perceived fairness through educational and informational intervention would provide insights into the amenability of these perceptions to managerial action toward change. REFERENCES Adams, J. S. Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social phychology (Vol. 2). New York: Academic Press, 1965. Adams, J. S., & Freedman, S. Equity theory revisited, comments and annotated bibliography. In L. Berkowitz (Ed.), Advances in experimental social psychology. New York: Academic Press, 1976. Argyle, M. The social psychology of work. The Penguin Press, 1972. Brayfield, A. H., & Crockett, W. H. Employee attitudes and employee performance. Psychological Bulletin, 1955, 52, 396-424. Carrell, M. R. A longitudinal field assessment of employee perceptions of equitable treatment. Organizational Behavior and Human Performance, 1978, 21, 108-118. Carrell, M. R., & Dittrich, J. E. Equity theory: The recent literature, methodological considerations, and new directions. Academy of management review (Vol. 3, No. 2) April, 1978. Dawis, R. V., England, G. E., & Lofquist, L. H. A theory of work adjustment: A revision. Minneapolis: University of Minnesota, Human Relations Center, 1968. Dittrich, J. E., & Carrell, M. R. Dimensions of organizational fairness as predictors of job satisfaction, absence, and turnover. Academy of Management Proceedings '76, 1976, 79-83. Finn, R. H., & Lee, S. M. Salary equity: Its determination, analysis and correlates. Journal of Applied Psychology, 1972, 56, 283-292. French, W. L. The personnel management process. Boston: Houghton-Mifflin, 1974. Goodman, P. S. An examination of referents used in the evaluation of pay. Organizational Behavior and Human Performance, 1974, 3, 340-352.
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Goodman, P. S., & Friedman, A. An examination of Adams' theory of inequity. Administrative Science Quarterly, 1971, 16, 271-288. Herzberg, F., Mausner, B., Peterson, R. O., & Capwell, D. F. Job attitudes: Review of research and opinion. Pittsburgh: Psychological Service of Pittsburgh, 1957. Hinrichs, J. R. Correlates of employee evaluations of pay increases. Journal of Applied Psychology, 1969, 53,481-489. Klein, S. M. Pay factors as predictors to satisfaction: A comparison of reinforcement, equity, and expectancy. Academy of management Journal, 1973, 16, 598-610. Lane, I. M., & Messe, L. A. Distribution of insufficient, sufficient, and oversufficient rewards: A clarification of equity theory. Journal of Personality and Social Psychology, 1972, 20, 228-233. Lawler, E. E. Equity theory as a predictor of productivity and work quality. Psychological Bulletin, 1968, 70, 596-610. Lawler, E. E., & Porter, L. W. The effect of performance on job satisfaction. Industrial Relations. 1968, 7, 20-28. March, J. G., & Simon, H. A. Organizations. New York: Wiley, 1958. Nie, N. H., Hull, C. H., Jenkins, J. G., Steinbrenner, K., & Bent, D. H. SPSS, Statistical Package for the Social Sciences (2nd ed.). New York: McGraw-Hill, 1975. Nunnally, J. C. Psychometric theory. New York: McGraw-Hill, 1967. Porter, L. W., & Steers, R. M. Organizational, work and personnel factors in employee turnover and absenteeism. Psychological Bulletin, 1973, 80, 151-176. Pritchard, R. D. Equity theory: A review and critique. Organizational Behavior and Human Performance, 1969, 4, 172-211. Schuster, J. R., & Clark, B. Individual differences related to feelings toward pay. Personnel Journal, 1970, 23, 591-604. Schwab, D. P., & Cummings, L. L. Theories of performance and satisfaction: a review. Industrial Relations, 9, Issue No. 4, 1970. Telly, C. S., French, W. L., & Scott, W. G. The relationship of inequity to turnover among hourly workers. Administrative Science Quarterly, 1971, 16, 164-171. Vroom, V. H. Work and motivation. New York: Wiley, 1964. Vroom, V. H. Industrial social psychology. In G. Lindzey & E. Aronsen (Eds.). The handbook of social psychology (Vol. 5, 2nd ed.). Addison-Wesley, 1970. Pp. 200-208. Zedeck, S., & Smith, P. E. A psychophysical determination of equitable payment: A methodological study. Journal of Applied Psychology, 1968, 52, 343-347.
REFERENCE NOTE 1. Cronbach, L. J. Research on classrooms and schools: Formulation of questions, design, and analysis. 1976 Occasional Papers of the Stanford Evaluation Consortium. RECEIVED: February 17, 1978
Organizational Equity Perceptions, Employee Job Satisfaction, and Departmental Absence and Turnover Rates JOHN E.
DITTRICH
University of Colorado AND MICHAEL R. CARRELL
University of Louisville E m p l o y e e job satisfaction and perceptions of equitable treatment have been the topics of a great a m o u n t of behavioral research. Several theorists have suggested that one or the other m a y be related to organizational behaviors of e m p l o y e e s such as a b s e n c e and/or turnover. This longitudinal s t u d y e x a m i n e s the association of the two constructs, and, in a field setting, c o m p a r e s them as separate variables relating to a b s e n c e and turnover. E m p l o y e e perceptions of equitable t r e a t m e n t were found to be stronger predictors of a b s e n c e and turnover than were job satisfaction variables.
Extensive reviews of equity research by Lawler (1968), Pritchard (1969), Goodman and Friedman (1971), Adams and Freedman (1976), and Carrell and Dittrich (1978) have observed that Adams' (1965) equity theory has received considerable support in laboratory studies. There have been only a very limited number of field studies which identify dimensions of perceived equity, validate the equity norm, or study the longitudinal effects of equity and inequity. Equity theory assumes that employees compare their job inputs and outcomes with those of coworkers or reference groups. Employees who perceive themselves in an inequitable situation will seek to reduce the inequity by one or more of several methods which include absenteeism and turnover (Adams, 1965). The research on job satisfaction reviewed by Brayfield and Crockett (1955), Herzberg, Mausner, Peterson, and Capwell (1957), Vroom (1964), and Porter and Steers (1973) considers satisfaction in two ways. As an independent motivating variable, satisfaction is seen causally associated with productivity [Herzberg et al., (1957) and numerous studies reviewed by Brayfield and Crockett (1955) and Schwab and Cummings (1970)] or other dependent variables such as absence and turnover (Porter & Steers 1973). A second view of job satisfaction is as a somewhat more dependent R e q u e s t s for reprints should be sent to John E. Dittrich, College of B u s i n e s s and Administration, University of Colorado at Colorado Springs, Colorado Springs, CO 80907. 29
0030-5073/79/040029-12502.00/0 Copyright © 1979by AcademicPress, Inc. All rights of reproduction in any form reserved.
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DITTRICH
AND CARRELL
variable, one which represents a longer term desirable motivational state, (French, 1974, pp. 112-113; Argyle, 1972, p. 223), dependent upon productivity, the rewards system, and perceptions of the equitability of such rewards. (Vroom, 1964, Lawler & Porter, 1968). Despite the close relationship seen between the concepts of job satisfaction and perceptions of equity, research on equity theory has almost entirely concentrated upon the behavioral consequences of inequity without concern for dissatisfaction, and has been conducted in the laboratory, a milieu in which perceptions of either inequity or dissatisfaction may be seriously limited or contrived. The purpose of this study is to explore the association and relative strength of the equity and job satisfaction constructs and their dimensions through field research. A brief review is conducted of the literature dealing in the relationships seen existing between perceptions of equity, job satisfaction, absence, and turnover. Two field studies bearing on these relationships are then discussed in some detail. Following this review, the equity dimensions are examined as variables useful in predicting overall job satisfaction. Data are then presented which empirically compare the equity dimensions and job satisfaction as separate variables relating to absence and turnover.
Conceptualized Relationships: Equity, Satisfaction, Absence, Turnover Adams (1965) proposes that perceived inequity is a source of tension which results from Input-Outcome discrepancies relative to some comparison Other and that the greater the feeling of inequity, the greater the drive to reduce the tension. He then states that inequity results in "dissatisfaction in an unpleasant emotional state" and that in addition there will be other effects of the tension arising from perceptions of inequity. To reduce perceived inequity a person may alter job inputs or outcomes, may cognitively distort inputs or outcomes, may leave the field, may act on another person, and may change the object of his comparison. Both absenteeism and turnover, as forms of withdrawal behavior, could represent a reduction in effort or leaving the field, two of these six forms of inequity resolution. Vroom (1970) also sees a strong conceptual link between perceptions of equity and job satisfaction and notes that satisfaction is "determined solely by the rewards he derives (outcomes) and the costs (inputs) he incurs from that membership" (p. 204). Porter and Steers (1973) see job satisfaction as an intervening variable. Equity comparisons serve to determine the degree of satisfaction or dissatisfaction which then apparently input into decisions to remain or to search for other job alternatives (pp.
156-157). March and Simon (1958) postulate that an overall balance of inducements utilities to contributions utilities affects the propensity to leave the
ORGANIZATIONAL
PERCEPTIONS
31
organization. Three factors are cited as having an impact upon job satisfaction which in turn affects the perceived desirability of movement and subsequently the likelihood of movement. The three factors are: (1) conformity of job characteristics of the self-characterization held by the individual, (2) predictability of instrumental relationships on the job, and (3) the compatibility of work requirements with the requirements of other roles (March & Simon, 1958, pp. 94-95). These authors, therefore, also see a linked relationship between various inducements and contributions, job satisfaction, and decisions to participate or withdraw. Equity Research Field Studies Five field studies provide empirical support to the notion of an equity norm. Schuster and Clark (1970) found that employees try to balance pay with performance, and that older, higher paid, less educated, better performers feel more satisfied with their pay. Zedeck and Smith (1968) found that employees tend to assess equity based upon an "internal standard." Hinrichs (1969) found that perceptions of equitable pay are significantly affected by current pay level and earnings potential as assessed by education, age, and sex. The equity norm is further supported by Finn and Lee (1972) who found that for a low-relative compensation group the components of the equity model account for a substantial portion of the perceived inequity. In a longitudinal field study Carrell (1978) found that employee perceptions of equitable treatment were affected when an organization altered its pay system which resulted in pay increases for about 50% of its employees. However, the inequity perceptions diminished after a nine month period. Only two field studies have examined relationships between perceptions of equity and job satisfaction and turnover. Klein (1973) selected a large random sample of blue collar workers, then assessed their feelings of overall job satisfaction by means of four empirically selected questions and used high and low values (only) of three independent variables: reinforcement (two questions), expectancy (two questions), and equity (three questions). Three-way analysis of variance on the polarized independent variables revealed differences in overall job satisfaction between high and low equity groups significant at .01 or better in all three pay categories. Reinforcement was not found to be a significant independent variable. Klein notes that in using the entire population in a multiple regression model on overall job satisfaction, first order partial correlations for reinforcement, equity and expectancy range from .11 to .26 with an R 2 of almost .25 (significance level not reported), (Klein, 1973, footnote p. 604). In the research of Telly, French, and Scott (1971) relating equity to turnover, significantly higher (p < .001) average scores for perceptions of equity in five of eight areas of work environment measured (supervision, leadmen, working condition, intrinsic and social aspects) were found
32
DITTRICH
AND CARRELL
among employees in low turnover shops when compared to average scores for a similar random sample of employees in high turnover shops. Relationships among those variables were not studied, but the study suggests that turnover may be one method used by employees to alleviate perceived inequity. The causal link between equity, satisfaction, and absence or turnover has thus been strongly suggested. Research on job satisfaction and equity, however, has not as yet examined relationships between these variables or compared their strengths as predictors of absence or turnover.
METHOD
Sample The sample consisted of 158 clerical employees in 20 departments of a large metropolitan area office. Eighty-three percent of respondents were female, predominantly of urban backgrounds. Over 40% were 25 years in age or younger, while the ages of the remainder ranged evenly to more than age 65. Over three quarters of respondents had been in their present job less than one year, and more than 80% fell into two pay categories. Departments ranged in size from a low of three employees (four departments) to a high of 16 (two departments). Individual questionnaires were used to obtain perceptions of equity and feelings of job satisfaction. The response rate for completed questionnaires was in excess of 90% overall, and in each department. Personnel records were the source of departmental absence and turnover figures.
Measures The Organizational Fairness Questionnaire (Dittrich & Carrell, 1976) is a 31-question, pencil and paper instrument designed to assess employee perceptions of equity or inequity. Responses range from "Strongly Agree" to "Strongly Disagree" in a five-point neutral-center scale to statements of the form: "The rules for giving pay raises are not fair to some employees." Five dimensions were factorially derived from an original set of 43 questions. Reliability analysis on the factored dimensions resulted in the deletion of 12 questions which had item to total correlations below .30. Definitions of the factored dimension, alpha reliability coefficients, and sample statements are shown in Table 1. The instrument was specifically designed for field research by allowing individuals to report their own perceptions of the net balance of the I/O ratio based upon internally derived standards. This method has been suggested by several equity researchers (Carrell & Dittrich, 1978; Goodman, 1974; Lane & Messe, 1972; Zedeck & Smith, 1968). The instrument had displayed evidence of construct validity and reliability in previous field research (Dittrich & Carrell, 1976).
ORGANIZATIONAL PERCEPTIONS
33
TABLE 1 ORGANIZATIONALFAIRNESS QUESTIONNAIREDIMENSIONS DEFINITIONS~ RELIABILITY COEFFICIENTS, AND SAMPLE STATEMENTS
PAYRULES (nine questions). Perceptions of the fairness of one's play relative to one's coworkers and the fairness of the rules for granting pay increases and promotions. Alpha = .89. Sample Statement: "The rules for giving pay raises are not fair to some employees." PAYADMIN (five questions). Perceptions of the fairness of the supervisor in administering the rules for pay raises and promotions. Alpha = .84. Sample Statement: " M y supervisor rates people unfairly in considering people for promotion." WORKPACE (eight questions). Perceptions of the fairness of the supervisor in maintaining a fair pace of work activity. Alpha = .79. Sample Statement: " M y supervisor sees to it that all of us meet work standards." PAYLEVEL (five questions). Perceptions of the fairness of one's pay relative to other's pay outside of the employing organization. Alpha = .70. Sample Statement: "Other companies in this area pay people doing my kind of job less than I am getting paid." RULEADMN (four questions). Perceptions of the fairness of supervisors in maintaining acceptable forms of general behavior in the workplace. Alpha = .71. Sample Statement: "My supervisor allows workers to tease other employees, be late to their work stations, and to act improperly in other ways."
The 20-item short form of the Minnesota Satisfaction Questionnaire (Dawis, England, & Lofquist, 1968) was used to assess employee feelings of job satisfaction. Factors labeled Intrinsic and Extrinsic Satisfaction have been identified in applications of this instrument. Intrinsic Satisfaction (12 Questions) includes questions on satisfaction with the Moral Values, Security, Social Service, Autonomy, Ability Utilization, Responsibility, Creativity, Achievement, and Activity associated with the job. Extrinsic Satisfaction (Six Questions) includes expressions of satisfaction with Supervision-Technical, Supervision-Human Relations, Company Policies and Practices, Compensation, Advancement, and Recognition. General Satisfaction (20 Questions) includes the variables mentioned above and adds feelings about Working Conditions and Co-Workers. Standardized item alpha reliability coefficients of .93, .83, and .95 were found for INTRINSIC, EXTRINSIC, and General Satisfaction measures respectively. Detailed departmental absence and turnover data were collected from personnel records for the 11 months immediately following the questionnaire administration. Total hours of absence per department for each of the 11 months were standardized for department size by computing absence hours per employee for each department. Total turnover (all voluntary) was also taken from personnel records, and was similarly standardized. Newly hired employees who did not complete the questionnaires were excluded from the absence and turnover data.
34
D I T T R I C H AND CARRELL
Analytical Procedures Perceptions of equity and expressions of satisfaction represent unique sets of responses of individuals to tasks, working conditions, supervisors, and reward systems. Analysis at the level of the individual is required, therefore, and stepwise multiple regression of the five fairness variables on overall job satisfaction was used to construct combinations of individual equity perceptions as predictors of individual employee satisfaction. The necessity for anonymity of responses in this study precluded the use of individual absence or turnover data. Aggregation of individual responses at departmental level was needed for comparison with standardized departmental absence and turnover rates. While perceptions and feelings are individual in origin, the influence of one's peers and one's supervisor may contribute a unique departmental effect. In examining the measures, three of the five equity variables (PAYADMIN, WORKPACE, and RULEADMN) measure characteristics of the supervisor, a factor common to all members of a given department. The supervisor and co-workers also have an effect on employee perceptions of equity by either providing or withholding information and by means of personal persuasion. Thus, the aggregation of perceptual information by department has conceptual soundness in identifying individual responses to common experiences, a rationale supported by Cronback (Note 1). Empirical support for the use of the mean as an aggregative measure can be provided by an examination of between and within departments variance. One-way analysis of variance of each dimension by TABLE 2 MULTIPLE REGRESSION: FIVE FAIRNESS VARIABLES ON GENERAL SATISFACTION, STEPWISE INCLUSIONn = 126 ~
Variable
Mult R
PAYRULES WORKPACE Constant
.563 .581 31.68
Variables in the equation Unstd B Std Beta Std Error B .762 .498 .362 .158 Multiple R = .581
F (Each Var)
.123 .184
38.4 3.9 F = 31.34
Variables not in the equation
Variable PAYADMIN PAYLEVEL RULEADMN
Multi R (if included)
Beta (if included)
Partial corr. coeff, (if included)
F Value each var. (if included)
.582 .583 .583
.010 - .048 -.038
.010 -.048 -.036
.012 .280 .156
Reduced from 158 as the result of listwise deletion of an entire case for data missing on any of the 51 questions.
35
ORGANIZATIONAL PERCEPTIONS
department revealed highly significant differences (p < .01) in means between departments on all eight measures. The use of a departmental level of analysis for studying the predictive power of equity and job satisfaction on employee absence and turnover rates, however, required a change in the analytic technique employed. Given seven independent variables and an n of 19 departments (absence and turnover data were not available for Department 6), simple regression of each variable on departmental absence and turnover rates, rather than stepwise multiple regression, was viewed as an adequate and conservative treatment of the data. SPSSH (Nie, Hull, Jenkins, Steinbrenner, & Bent, 1975) was used for all computations. RESULTS
1. Equity dimensions and job satisfaction. The stepwise multiple regression procedure for regressing five equity dimensions on General Satisfaction was stopped after the entry of the two predictor variables PAYRULES and WORKPACE. The two-predictor equation is significant atp < .01 as are the betas for each of the two variables entered. As can be seen in Table 2, beta weights and F values for the remaining three variables are very low at this step, and their addition to the equation would add very little to the proportion of variance explained. TABLE 3 BIVARIATE REGRESSION ANALYSIS; JOB SATISFACTIONAND FAIRNESS DIMENSIONS ON EMPLOYEE ABSENCE
Variable
R
GENSAT
-.216
INTSAT
-.444
EXTSAT
-.260
PAYRULES
-.467
PAYADMIN
-.292
WORKPACE
-.384
PAYLEVEL
-.583
RULEADMN
-.495
OAFAIR
-.479
* p < .05. **p < .01.
Analysis of variance Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual
D.F.
S.S.
F
1 17 1 17 1 17 1 17 1 17 1 17 1 17 1 17 1 17
1132 23107 4786 19454 1642 22598 5281 18959 2068 22171 3573 20666 8229 16011 5939 18301 5552 18688
.83 4.18 1.24 4.74* 1.58 2.94 8.74** 5.52* 5.05*
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D I T T R I C H AND CARRELL
2. Equity and satisfaction as predictors of absence and t u r n o v e r . Results of the procedure in which mean equity perceptions and job satisfaction scores were regressed on absence and turnover data are found in Tables 3 and 4. All equity and job satisfaction dimensions correlate negatively with absence, a finding consistent with earlier theoretical and empirical research. Three of the five equity dimensions are significant predictors of e m p l o y e e absence; P A Y L E V E L at r = .58 (p < .01), R U L E A D M N at r = .49 (p < .05), and P A Y R U L E S at r = .47 (p < .05). Intrinsic satisfaction, at r = .44 (p < . 10), is the only satisfaction measure to show regression approaching significance. The interrelationship of the two criterion variables was examined by means of simple correlation. A positive coefficient r of .53, significant at (p < .01) was obtained for the correlation of departmental absence and departmental turnover. The strength of all satisfaction and equity variables in predicting departmental turnover is much lower and less significant than in predicting departmental absence. P A Y L E V E L , at r = .42 (p < .10), is the only measure of the nine which has a regression on departmental turnover approaching significance. DISCUSSION Equity-Satisfaction Relationship In the regression of equity on satisfaction, P A Y R U L E S and WORKPACE are together the most significant fairness elements affecting the TABLE 4 BIVARIATE REGRESSION ANALYSIS: JOB SATISFACTIONAND FAIRNESS DIMENSIONS ON EMPLOYEE TURNOVER (n ~ 19 DEPARTMENTS)
Variable
R
Analysis of variance
D.F.
S.S.
F
GENSAT
-.282 - . 172
1 17 1 17
EXTSAT
-.316
.172 1.993 .064 2.101 .216 1.949
1.47
INTSAT
Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual Regression Residual
1
.071
.58
17
2.094 .138 2.028
1.13
1
.018
.15
17 1 17
2.147 .388 1.777 .021 2.144 .105 2.060
PAYRULES PAYADMIN WORKPACE
-.033 -.252 -.093
PAYLEVEL
- .424
RULEADMN
- .098
OAFAIR
-.221
1 17
1 17
1 17 1 17
.52 1.87
3.72 .16 .87
ORGANIZATIONAL
PERCEPTIONS
37
expressed satisfaction of employees. These findings indicate that job satisfaction is most strongly influenced by equity comparisons made inside rather than outside the organization since both PAYRULES and WORKPACE are internal organizational comparisons. This result is consistent with the findings of Zedick and Smith (1968). The relationship of these dimensions to job satisfaction found here can be seen as support for the March and Simon (1958) assertion that "Predictability of Job Relationships" and "Conformity of Job to Self Image" as bearing directly on satisfaction with the job (p. 94). Predictability of job relationships may be related to several of the equity variables, but can be explained in terms of both P A Y R U L E S and WORKPACE. In inputs/outcomes ratio terms, PAYRULES relates directly to the reward structure, or outcomes, and WORKPACE to individual effort, or inputs. A pay structure and rules (e.g., PAYRULES) inconsistent in its rules (and thereby perceived as unfair) would not enable employees to predict present and future pay relationships. Similarly, a supervisor inconsistent in maintaining a fair pace of work (e.g., WORKPACE) would thereby prevent employees from predicting job relationships. A consistent but unfair pay structure, or a consistently unfair supervisor would permit prediction, but would result in an employee suffering a chronically inequitable situation. In both of these chronically unfair situations, the employee's self-image (one of several inputs in Adam's model) is not accorded an appropriate outcome in the form of pay treatment. Thus chronic inequity perceived by employees is a way of describing a low degree of conformity of job to self-image, and can result in lower levels of job satisfaction as well as attempts to reduce tension by changes in effort or withdrawal.
Equity-Absence and Turnover Relationship Employee satisfaction measures in this sample did not relate significantly to employee absence or turnover. Employee perceptions of equity, however, demonstrated a significant relationship to absence. Absence in turn had a significant relationship to employee turnover. The findings on perceptions of equity support the conceptual framework of the equity model (Adams, 1965) and earlier research. Absenteeism can serve as withdrawal, and also as a form of reduction of effort, particularly where the pace of work is closely controlled by technology or by supervision, Withdrawal by means of continued absences also has the effect o f " r e ducing the habituation, increasing the propensity to search for alternative work opportunities and increasing the salience of the extra-organizational work alternatives" (March & Simon, 1958, p. 105). The continued perception of inequity, therefore, can indirectly result in turnover. Perceived equity of pay level (compared externally) also affects turnover through direct, but external, comparison of inputs and outcomes, a comparison
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DITTRICH AND CARRELL
which can lead to job change decisions. The low predictive strength of all variables, job satisfaction and perceptions of equity, lends support to the argument that while absence and turnover originate from the same feelings, the decision to permanently withdraw may be more directly affected by opportunity; that is, by the perceived possibility of intra-organizational work transfer and by the number of extra-organizational alternatives perceived (March & Simon, 1958, p. 105).
Intervening Variable Model The intervening variable model which relates equity perceptions and job satisfaction to withdrawal behavior can be explored by an examination of the results displayed in Tables 2, 3, and 4. The model suggests that equity perceptions lead to feelings of satisfaction which in turn lead to absence or turnover. If perceptions of equity directly affect job satisfaction, then a positive correlation should be found between these variables. The model would also suggest that the more direct relationship between satisfaction measures and withdrawal should be reflected in higher correlation coefficients between satisfaction and absence and turnover than between equity perceptions and these two variables. Consistent with the model, the data in this study reveal that a strong relationship exists between equity perceptions and job satisfaction measures. Contrary to the relationships posited by the model, however, several dimensions of equity perceptions are found to relate more strongly to absence (Table 3) than do feelings of job satisfaction. The data found in Table 4 relating satisfaction and equity perceptions to turnover are similar, but are not statistically significant and must be regarded as inconclusive. The findings may in part have been the result of differences in the focus of the two instruments. Employee satisfaction, as measured by the Minnesota Satisfaction Questionnaire, includes factors not addressed in the measurement of perceptions of equity, factors such as the intrinsic nature or value of the work itself. The lack of support for the model seen here may, therefore, reflect the broader array of elements measured by the job satisfaction instrument rather than providing a clear refutation of the intervening variable model. SUMMARY Employee withdrawal behaviors, so costly in terms of training, recruitment, and organizational dislocation, remain elusive and difficult to predict. A statistically significant predictive relationship with absence was found for three of the five fairness variables but not for any of the three job satisfaction measures. None of the fairness or satisfaction variables demonstrated statistically significant predictive strength on turnover, despite a supportive theoretical base and careful measurement of predictor and criterion variables.
ORGANIZATIONAL PERCEPTIONS
39
Dimensionalized perceptions of equity displayed several interesting and significant predictive relationships. Their effects seem more important in organizational behavior than had been suspected, and are deserving of more research attention. Internally oriented equity perception dimensions were strongly related to job satisfaction, but externally oriented equity perceptions demonstrated a much stronger relationship to withdrawal behavior of both types. These results suggest that further theoretical development involving equity, job satisfaction, and withdrawal behaviors may call for a more careful definition of the foci of equity perceptions and greater specificity in expressions of job satisfaction if sound hypotheses are to be framed for testing. Continued exploration of the intervening variable model by comparing the relative predictive power of equity perceptions and job satisfaction should shed additional light on the linkage between equity, satisfaction and withdrawal, and may provide additional insights into the credibility of the intervening variable model. Research examining organizational equity variables and other criterion measures should also be undertaken. Of special interest are departmental grievance levels, performance, quality, and accident rates. Finally, experimental field studies addressing changes in levels of perceived fairness through educational and informational intervention would provide insights into the amenability of these perceptions to managerial action toward change. REFERENCES Adams, J. S. Inequity in social exchange. In L. Berkowitz (Ed.), Advances in experimental social phychology (Vol. 2). New York: Academic Press, 1965. Adams, J. S., & Freedman, S. Equity theory revisited, comments and annotated bibliography. In L. Berkowitz (Ed.), Advances in experimental social psychology. New York: Academic Press, 1976. Argyle, M. The social psychology of work. The Penguin Press, 1972. Brayfield, A. H., & Crockett, W. H. Employee attitudes and employee performance. Psychological Bulletin, 1955, 52, 396-424. Carrell, M. R. A longitudinal field assessment of employee perceptions of equitable treatment. Organizational Behavior and Human Performance, 1978, 21, 108-118. Carrell, M. R., & Dittrich, J. E. Equity theory: The recent literature, methodological considerations, and new directions. Academy of management review (Vol. 3, No. 2) April, 1978. Dawis, R. V., England, G. E., & Lofquist, L. H. A theory of work adjustment: A revision. Minneapolis: University of Minnesota, Human Relations Center, 1968. Dittrich, J. E., & Carrell, M. R. Dimensions of organizational fairness as predictors of job satisfaction, absence, and turnover. Academy of Management Proceedings '76, 1976, 79-83. Finn, R. H., & Lee, S. M. Salary equity: Its determination, analysis and correlates. Journal of Applied Psychology, 1972, 56, 283-292. French, W. L. The personnel management process. Boston: Houghton-Mifflin, 1974. Goodman, P. S. An examination of referents used in the evaluation of pay. Organizational Behavior and Human Performance, 1974, 3, 340-352.
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Goodman, P. S., & Friedman, A. An examination of Adams' theory of inequity. Administrative Science Quarterly, 1971, 16, 271-288. Herzberg, F., Mausner, B., Peterson, R. O., & Capwell, D. F. Job attitudes: Review of research and opinion. Pittsburgh: Psychological Service of Pittsburgh, 1957. Hinrichs, J. R. Correlates of employee evaluations of pay increases. Journal of Applied Psychology, 1969, 53,481-489. Klein, S. M. Pay factors as predictors to satisfaction: A comparison of reinforcement, equity, and expectancy. Academy of management Journal, 1973, 16, 598-610. Lane, I. M., & Messe, L. A. Distribution of insufficient, sufficient, and oversufficient rewards: A clarification of equity theory. Journal of Personality and Social Psychology, 1972, 20, 228-233. Lawler, E. E. Equity theory as a predictor of productivity and work quality. Psychological Bulletin, 1968, 70, 596-610. Lawler, E. E., & Porter, L. W. The effect of performance on job satisfaction. Industrial Relations. 1968, 7, 20-28. March, J. G., & Simon, H. A. Organizations. New York: Wiley, 1958. Nie, N. H., Hull, C. H., Jenkins, J. G., Steinbrenner, K., & Bent, D. H. SPSS, Statistical Package for the Social Sciences (2nd ed.). New York: McGraw-Hill, 1975. Nunnally, J. C. Psychometric theory. New York: McGraw-Hill, 1967. Porter, L. W., & Steers, R. M. Organizational, work and personnel factors in employee turnover and absenteeism. Psychological Bulletin, 1973, 80, 151-176. Pritchard, R. D. Equity theory: A review and critique. Organizational Behavior and Human Performance, 1969, 4, 172-211. Schuster, J. R., & Clark, B. Individual differences related to feelings toward pay. Personnel Journal, 1970, 23, 591-604. Schwab, D. P., & Cummings, L. L. Theories of performance and satisfaction: a review. Industrial Relations, 9, Issue No. 4, 1970. Telly, C. S., French, W. L., & Scott, W. G. The relationship of inequity to turnover among hourly workers. Administrative Science Quarterly, 1971, 16, 164-171. Vroom, V. H. Work and motivation. New York: Wiley, 1964. Vroom, V. H. Industrial social psychology. In G. Lindzey & E. Aronsen (Eds.). The handbook of social psychology (Vol. 5, 2nd ed.). Addison-Wesley, 1970. Pp. 200-208. Zedeck, S., & Smith, P. E. A psychophysical determination of equitable payment: A methodological study. Journal of Applied Psychology, 1968, 52, 343-347.
REFERENCE NOTE 1. Cronbach, L. J. Research on classrooms and schools: Formulation of questions, design, and analysis. 1976 Occasional Papers of the Stanford Evaluation Consortium. RECEIVED: February 17, 1978