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Not All Fairness Is Created Equal: Fairness Perceptions of Group vs. Individual Decision Makers

Author

Listed:
  • Maryam Kouchaki

    (Kellogg School of Management, Northwestern University, Evanston, Illinois 60208)

  • Isaac H. Smith

    (Johnson Graduate School of Management, Cornell University, Ithaca, New York 14853)

  • Ekaterina Netchaeva

    (Bocconi University, 20136 Milan, Italy)

Abstract

Drawing on fairness heuristic theory and literature on negative group schemas, we develop and empirically test the idea that, given the exact same decision outcome, people perceive groups to be less fair than individuals when they receive a decision outcome that is unfavorable, but not when they receive one that is favorable or neutral (Studies 1 and 2). To account for this difference in fairness perceptions following an unfavorable outcome, we show that the mere presence of a group as a decision-making body serves as a cue that increases the accessibility of negative group-related associations in a perceiver’s mind (Study 3). Moreover, in a sample of recently laid-off workers—representing a broad range of organizations and demographic characteristics—we demonstrate that those who received a layoff decision made by a group of decision makers (versus an individual) are marginally more likely to perceive the decision as unfair and are marginally less likely to endorse the organization (Study 4). Taken together, the results of all four studies suggest that, in response to the same unfavorable decision outcome, a group of decision makers is often perceived to be less fair than an individual.

Suggested Citation

  • Maryam Kouchaki & Isaac H. Smith & Ekaterina Netchaeva, 2015. "Not All Fairness Is Created Equal: Fairness Perceptions of Group vs. Individual Decision Makers," Organization Science, INFORMS, vol. 26(5), pages 1301-1315, October.
  • Handle: RePEc:inm:ororsc:v:26:y:2015:i:5:p:1301-1315
    DOI: 10.1287/orsc.2015.0992
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    References listed on IDEAS

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    1. Daniel Kahneman, 2003. "Maps of Bounded Rationality: Psychology for Behavioral Economics," American Economic Review, American Economic Association, vol. 93(5), pages 1449-1475, December.
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    Cited by:

    1. Anna Trunk & Hendrik Birkel & Evi Hartmann, 2020. "On the current state of combining human and artificial intelligence for strategic organizational decision making," Business Research, Springer;German Academic Association for Business Research, vol. 13(3), pages 875-919, November.
    2. Isaac H. Smith & Andrew T. Soderberg & Ekaterina Netchaeva & Gerardo A. Okhuysen, 2023. "An Examination of Mind Perception and Moral Reasoning in Ethical Decision-Making: A Mixed-Methods Approach," Journal of Business Ethics, Springer, vol. 183(3), pages 671-690, March.
    3. Li, Yadong & Guan, Zhenzhong & Ren, Jianbiao, 2023. "Channel coordination under retailer's (sub)conscious preferences of loss aversion and fairness," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).

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