REWARD ALLOCATION PREFERENCES IN GROUPS AND ORGANIZATIONS

Abstract

This review article focuses on the factors that affect the selection and implementation of three principles of distributive justice (i.e., equity, equality, and need) to reward systems in group and organizational settings. After presenting an overview of the assumptions, goals, and possible consequences associated with each of the three perspectives, the article then describes the moderating factors influencing distribution rule preferences across four levels of analysis: (1) the interorganizational, (2) the intraorganizational, (3) the work group, and (4) the individual. Some of the variables discussed include cross‐cultural differences, reward system implementation, task interdependency, work group climate, and individual characteristics. This material is then summarized through the use of a new conceptual model for describing allocation rule preferences. The article concludes with suggestions for future research.

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