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Unions and procedural justice: an alternative to the 'common rule'

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  • Marsden, David

Abstract

Can unions substitute a procedural justice role for their traditional reliance on establishing a ‘common rule’? The decline of ‘bureaucratic’ models of employee management and the rise of performance pay and performance management conflicts with the common rule as management seek to tie rewards more closely to individual and organisational performance. CEP studies of performance pay in the British public services illustrate the potential for a procedural justice role to ensure that such pay systems are operated fairly, otherwise they risk demotivating staff. Evidence is presented to show that employees regard unions as effective vehicles for procedural justice. In this way, management can achieve better operation of their incentive schemes, and employees may experience less unfairness and poisoned work relations.

Suggested Citation

  • Marsden, David, 2004. "Unions and procedural justice: an alternative to the 'common rule'," LSE Research Online Documents on Economics 3633, London School of Economics and Political Science, LSE Library.
  • Handle: RePEc:ehl:lserod:3633
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    Cited by:

    1. James Arrowsmith & Paul Marginson, 2011. "Variable Pay and Collective Bargaining in British Retail Banking," British Journal of Industrial Relations, London School of Economics, vol. 49(1), pages 54-79, March.

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    JEL classification:

    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation

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