2/15/2016 1 Mandated Justice: The Potential Promise and Possible Pitfalls of Mandating Procedural Justice in The Workplace Yuval Feldman Bar-Ilan University and Tom R. Tyler New-York University This paper benefitted from comments made at the Annual meeting of the Law and Society Association and of the Conference on Empirical Legal Studies. In particular, we would like to thank Janice Nadler and Linda Demaine for valuable comments on those presentations. We also thank Amir Falk and Miri Katz for excellent research assistantship. Financial Support for this research was received from the EU Marie Currie Reintegration Grant. We would also like to thank several anonymous reviewers for their helpful comments. 2/15/2016 2 Abstract The literature on the new governance asks whether and how legal authorities ought to intervene in work organizations to most effectively regulate employee’s behavior. In this paper, the authors examine this question empirically by exploring how the influence of the procedural justice of employee pay and promotion procedures upon employee adherence to workplace rules differs depending upon whether or not those fair procedures are enacted within companies voluntarily or because they are mandated by law. This question is addressed using both a survey of employees and employee reactions to an experimental vignette. The results suggest that the influence of evaluations of the procedural justice of performance appraisal hearings on judgments of overall workplace fairness, perceptions of management legitimacy, and employee rule following behavior is greater when employees believe their workplace procedures are required by law. Two features of procedures, their prevalence and whether they were expected led employees to believe they were required and consequently enhanced their influence. Finally, reactions to the experimental vignette suggest that when workers believe that procedural changes enhance procedural justice they are more influential when they are believed to be mandated actions on the part of management. Overall the findings suggest that government interventions into business organizations in the form of legal requirements to make formal procedures for performance appraisal among employees are likely to enhance overall levels of rule following among employees. 2/15/2016 3 Introduction In recent decades law and society scholars have identified and investigated forms of “new governance” in the regulation of business organizations (Auld, Bernstein, & Cashore, 2008; Braithwaite, 2008; Gunningham, 2007; Lehmkuhl, 2008; Parker, 2002; Shamir, 2008). These new forms of legal regulation focus less upon formal legal regulation and more upon the voluntary efforts of both civic groups and market driven business organizations to create and maintain internal procedures for enforcing, among other things, standards of ethics and social responsibility. These new models highlight the importance of reconsidering the degree to which the state should intervene directly within work organizations by mandating appropriate procedures. This study addresses this question empirically by exploring how employee’s judgments concerning whether procedural protections are mandated by law shapes influence of those procedures upon employee’s attitudes and behaviors. Efforts to test the appropriate role of the state in facilitating new governance approaches are especially timely since recent corporate scandals and regulatory failures in the business community have drawn renewed scholarly attention to a long-term question within legal studies. That question is how to most effectively manage the behavior of people within market driven work organizations. In particular, both management researchers and legal scholars are revisiting the issue of how government can best act to control the actions of employees within work organizations so as to bring employee behavior into adherence with organizational rules and principles of ethical conduct. This approach is not a complete solution to problems of regulating behavior in work settings, since corporate rules can facilitate unethical conduct, but any general 2/15/2016 4 approach to minimizing malfeasance must include a strategy for bringing employee behavior into line with the type of formal rules and regulations that can be mandated by the law. One promising argument concerning an effective strategy for regulation develops from the now extensive literature on procedural justice in organizations (Lind & Tyler, 1988; Tyler, 2006; Tyler & Blader, 2000). That literature demonstrates that when employees experience procedural justice within their work organizations they view rules and authorities as more legitimate and more frequently obey them. This suggests that one approach that could be taken to increase employee rule adherence is to increase the procedural justice of work organizations and thereby heighten the motivation of workers to follow workplace rules and obey workplace authorities. In particular, employees who are provided with opportunities for participation and voice in decisions that influence their workplaces are found to be more rule adherent (Freeman & Rojers, 1999; Befort, 2004). These procedural justice findings suggest a clear and compelling strategy for legal authorities to follow in increasing rule following among employees in work organizations. That strategy is for the law to mandate that businesses utilize just procedures in different areas of their decision making. Such an approach is consistent with current legal approaches. The Sarbanes-Oxley law, like many legislative actions reflecting the “new governance” model, mandates that businesses create an ethical culture and provides sanctions for companies that fail to do so. However, a mandated procedural justice approach could utilize the substantial body of existing empirical research on procedural justice to design the specifics of such a model, rather than prescribing a vague 2/15/2016 5 “ethical culture”. According to such approach, mandatory participation in pay and promotion procedures may be required. Is such a strategy desirable? As already noted, a number of studies in work and other organizational environments suggests that when people feel that they are allowed to participate in decision making procedures by presenting evidence and expressing their views, they view those procedures as more just. Hence, the case for mandating fair procedures is clear (Lind & Tyler, 1988; Tyler, 2006; Tyler & Blader, 2000). However, an examination of the psychological models underlying procedural justice effects suggests a more complex picture. One perspective on mandating rights is that providing people with rights affirms their status within society and, as a consequence, encourages legitimacy and rule following (Tyler & Blader, 2000). It is widely demonstrated that treatment with respect by authorities, for example through their willingness to listen to and consider one’s arguments, as favorable motivational consequences. Further, the socio-legal literature argues that state recognition of a certain social practice is an index of the social prestige and importance of that practice. (e.g. Kagan, Gunningham & Thornton, 2003). Similarly, McAdams (1997) expressive law theory suggests that making a social norm into a law communicates to people that the practice is widely accepted within society. The argument that mandating a right might increase its effectiveness can also be linked to feelings of psychological ownership. In one of the most influential papers in behavioral economics, Kahneman, Knetch and Thaler (1991) have suggested that prospect theory (Kahneman & Tversky, 1984) leads to an endowment effect (Kahneman, Knetch & Thaler, 1990; Jolls, 2007) in which giving up things one owns is especially 2/15/2016 6 distressing. This suggests that rights that one legally owns should be especially psychologically valuable. People should not only be less willing to give up a right once they feel it is theirs, they should also be more likely to appreciate it (Rachlinski & Jourden, 1998; Sunstein & Thaler, 2003). In other words, enacting a law is likely to transform a social practice into a more psychologically important and beneficial one for those who are entitled to receive it. This perspective leads to the hypothesis that if employees believe that the state has mandated entitlements, rights and procedures for employees that work organizations are required to provide, this increases the value that employees will attribute to these rights and procedures. Consequently, voice procedures, which are associated with a legal requirement, will have a greater influence on employee’s allegiance to law, their support for rules and their willingness to obey them. Alternatively, however, mandating just procedures can be argued to undermine their effectiveness. One of the important functions of enacting fair procedures is to demonstrate interest in and concern for those employees who are subject to the procedures, i.e. to show that managers are benevolent and caring and are motivated to do what is good for their employees. For example, when people are given an opportunity to voice their arguments, the motivational value of that voice develops out of the belief that the decision maker is sincerely motivated to consider the evidence presented and take it into account when making a decision (Tyler, 1987). If people do not believe that their evidence is considered in a sincere manner, voice has no favorable influence. Hence, when people believe that management is providing opportunities for them to participate, mainly or even partly, because they are required to do so, the value of those opportunities might diminish. People recognize that actions taken under coercion do not reflect the 2/15/2016 7 actor’s values and intentions, and they do not infer benevolent or favorable character from them. This proposition gains support from research conducted by Greenberg (2003) in the context of perceived fairness of payment schemes. Testing predictions derived from the Jones and Davis (1965) theory of correspondent inference, Greenberg demonstrated that employees who viewed their manager’s payment decisions as deriving from company policy were less likely to evaluate their managers as fair. This study utilizes a survey of employees working in various companies within Israel to test the competing predictions concerning the consequence of perceiving that the justice occurring within a work setting is mandated by law. In an ideal research design employees would be randomly assigned to mandated vs. voluntarily enacted procedural justice conditions1 or we would look at changes over time that resulted from a change in the law. However, as it often true in this study setting one set of legal standards governed all of the workplaces studied. Fortunately, however, the hypotheses outlined are concerned with the influence of employee’s perceptions that is whether employees believed that the procedures used in their workplace were mandated by the state.2 In this sample there was substantial variation in the degree to which employees felt that the procedures being used were required or freely chosen by their management, so it was possible to examine the consequences of these differing views of the source of these procedures. 1 See page 13 for further discussion of the part of the study that did include a manipulation and random assignment which was added to deal with the limitations discussed here. See also discussion of our usage of path analysis at page 16, which was used to deal with the potential problem of reverse causality. 2 According to Israeli law the law does not require any of these elements of pay talks, so those employees who indicate that pay talks are legally required have a subjective perception that is not correct. 2/15/2016 8 Our concern is with the influence of the perception that performance appraisal hearings were or were not mandated by law on the impact of these procedures on employee’s motivation and behavior. In particular, we examined whether perceiving that the fair procedures being used were required by law, rather than freely chosen by management, diminished, enhanced of had no influence upon the impact of those procedures upon employee’s judgments of workplace fairness; their assessments of the legitimacy of company rules; and their overall compliance with those rules. Method This study focuses upon the determination of pay and promotion in work organizations. The survey has two parts. In the first part employees complete a questionnaire about their current workplace. In the second part they read and respond to questions about an experimental vignette that varies whether a new voice procedure is being introduced in a way that is voluntary or mandated. Sample The sample used for this study is a representative sample of 599 Israeli employees drawn from an ongoing panel of respondents. The name of the firm is Midgam, which is a highly respected survey firm in Israel. The sample is representative of the Jewish population of Israel. The demographics are that 51% of the respondents were male; their median age was 35-44; and 85% of them were born in Israel. On average, respondents had worked 6.3 years for their current employer, and they worked 41.7 hours per week. The web-based questionnaire The right to have a voice with regard to one's salary and benefits, an element of procedural justice, is an ideal case study for testing the likely effect of mandatory voice 2/15/2016 9 procedures through a questionnaire, as the law in Israel currently doesn’t require it, but many employees have it on a regular basis due to social practices, collective agreements or internal requirements of the organization. Most importantly, among those employees who have regular pay talks, a substantial minority believe that those pay talks are mandated by the law. Hence, the focus of this study is upon the effect of the belief that the pay talks in one’s work organization are voluntary or are required by law. Questionnaire The focus of the questionnaire was on the procedures used for determining compensation in respondents' workplaces. These “pay talk” procedures varied in the manner in which they allowed employees to be involved in decisions about pay and promotion. This study looked at the impact of such procedures upon three dependent variables: Judgments about the overall procedural fairness of the workplace; evaluations of the legitimacy of management; and employee adherence to workplace rules. The legal requirement of voice. A four item scale was used to assess employee perception about whether their company is “required by law or by government regulations” to: give you an opportunity to provide information about your job performance (41% yes)”; “allow you to review the information used to make pay decisions for accuracy and completeness (42% yes)”; “have a meeting to discuss issues related to job performance before decisions are made (42% yes)”; and “explain to you how decisions concerning your pay were made (47% yes)”. These four items were combined into a single scale reflecting perceived legal requirements. Coefficient alpha was 0.84. 2/15/2016 10 Degree of voice experienced in decision making. A five item scale assessed employee judgments about their actual degree of voice in the procedures used in their company. The items concerned “how decisions concerning your pay and benefits are made in your current work organization”. The items were: “When your salary is being set, how much opportunity are you given to provide information about the method and quality of your work before the decision is made?”; “When your salary is being set, how much opportunity are you given to review the information used to make pay decision for accuracy and completeness?”; “After decisions are made, how much explanation are you given to help you understand how decisions concerning your pay were made?”; “How frequently is there a meeting in which you can discuss issues that are related to your job performance before decision are made”; and “How much opportunity are you entitled to have to voice your evaluations of your performance and deserved pay and benefits before decisions are made?”. Coefficient alpha was 0.88. General workplace evaluations. Outcome favorability. Five items: “How favorable is your pay”; “How favorable are the benefits you receive”; “Compared to what you expect from past jobs, how favorable is your compensation for the work you do?”; “Compared to what your coworkers receive, how favorable is your compensation for the work you do?”; and “How favorable is the compensation you receive based on the policies of your work organization?”. Coefficient alpha was 0.93. Procedural justice. Eight items measure procedural justice. Coefficient alpha was 0.92. 2/15/2016 11 Five assess quality of general workplace decision making: “How fair are the procedures used to make compensation decisions (19-1)”; “How fair are the procedures used to determine your pay?”; do the procedures “allow you an opportunity to express your views”; “ensure that decisions are made in the same way for all employees”; and “try to ensure that decisions are made based upon accurate information”. Three items measure quality of treatment: “How fair is the treatment that employees receive while decisions are being made”; “How fair is the treatment that you receive when decisions are being made?”; do the procedures “reflect a desire by the company to do what is best for employees like yourself”. Distributive justice. Six items measure the fairness of the outcomes of the pay talks. Those items were: “How fair is the amount of pay that you received”; “How fair is the number of opportunities you are given to do the work you want to do?”; “My employer wants me to receive the pay and benefits that I deserve”; “My employer places emphasis on rewarding me fairly”; “I am fairly pair for the work I do”; “My pay is linked to how well I do my job”. These items were combined to form an overall distributive fairness scale (alpha = 0.93). Values and behavior. Legitimacy of workplace rules. Five items: “I feel I should accept the decisions made by my supervisors, even when I think they are wrong”; “I think it hurts my work group when I disagree with my supervisors”; “I feel that it is wrong to ignore my supervisor’s instructions even when I can get away with it”; “I feel that I should follow my companies policies even when I think they are wrong”; and “I think it hurts my company when I break company rules”. Coefficient alpha was 0.83. 2/15/2016 12 Compliance with workplace rules. Four items: How often do you: “comply with organizational instructions and regulations”; “Use company rules to guide what you do on the job”; “Come to work on time”; and “Follow organizational instructions about how you should spend your time”. Coefficient alpha was 0.92. Pay talk features Two procedural features were measured: the prevalence of pay talk procedures in the employee’s work place and the whether those pay talk procedures are an expectation on the part of employees. Prevalence. Two items were used to measure prevalence: “How frequently do your coworkers have pay talks in your current workplace”; “How many of the employees in your current workplace have pay talks?”. (alpha = 0.71). Expectancy. Two items were used to measure employee expectations: “Is it expected in your company that employees will receive an opportunity to voice their view concerning their performance and deserved pay and benefits before decisions are made?” and “Is there a formal periodic procedure in your company in which you get to voice your views concerning your performance and deserved pay and benefits?” (alpha = 0.72). Demographics. Respondents were asked about their age, gender, economic status, income, education, and nationality. They were also asked how many years they had worked in the company, and how many hours a week they worked. The experimental vignette Two issues are not ideally addressed using a survey based questionnaire. The first is showing that variations in the mandated status of voice are the cause of changes in 2/15/2016 13 employee attitudes and behaviors. Second, presenting all respondents with a common definition of what a pay talk is. To address these concerns we used a vignette within the survey. That vignette presented a new, high voice procedure that respondents were told they should think of as being implemented in their workplace. One half of the sample was told that this new implementation was legally mandated, the other half that it was a new voluntary management initiative. The presentation of the vignettes exposed all participants to the same voice procedure, controlling for its source (whether it is mandated or manipulated). Employees were randomly assigned to receive one of two scenarios. In each case the employer implemented a new and very fair procedure for pay talks. The issue was whether that implementation is voluntary (n = 299) or is required by law (n = 300). The first, "voluntary" sub-group read the following description: "Your employer has voluntarily decided to implement the following procedure in your organization”. The second randomly chosen group was exposed to text which primed the notion of government initiated pay talk: “Following a new regulation which was passed by the Ministry of Industry and Labour. All work organizations in Israel are required to have pay talks”. All participants than read the same description of the pay talk: " At least one biannual meeting between each employee and a representative of the employer regarding his/her conditions in the company. At those meetings the employees will be given an opportunity: To review and comment on information in their employment file. o To present their own views about their performance. o To indicate the pay and benefits they feel they deserve. 2/15/2016 14 According to this procedure, the employer would still decide the level of pay and benefits the employee will receive. After decisions are made it is the responsibility of the employer to prepare a written summary of the meeting for the employees personnel file. Employees will receive a written copy of this summary and can include their own comments about it in their file. Post Manipulation Measure Participants in both groups were then asked about their evaluation of the new procedure as well as about their likely behavior, if such a procedure were to be enacted in their own workplace. A five item scale was created to reflect employee's anticipated attitudes/behavior assuming the new voice procedure was in place. The items each asked the employee to imagine that the change had occurred. They were first asked how likely it is that they would: “Be satisfied with your job” and “Be satisfied with this procedure”; “Would willingly go along with the decisions made by your supervisor”; “Would carefully carry out the instructions of your supervisor” and “Would willingly accept your supervisor’s decisions even when you disapprove of them”. These five items were used to create an overall acceptance scale (alpha 0.91). The sample was divided into four groups following a two by two design. The first division was the degree of voice that the employees felt they had in their workplace prior to the introduction of the procedural change (less than in the proposal; the same as the new proposal). The second was whether the procedural innovation they read in the above described vignette was legally mandated or voluntary. Results 2/15/2016 15 Mandated voice and creating views about the general level of procedural justice in the organization The underlying premise of this analysis is that voice has a positive influence upon employee’s attitudes and behaviors in the workplace. Unless that is true, then there would be little gain involved in mandating voice in the workplace. And, of course, the argument that voice encourages positive attitudes and favorable behaviors is central to the literature on procedural justice (Lind and Tyler, 1988). Does the voice effect occur within the employees who responded to the survey? We used regression analysis to test this basic idea, conducting an analysis in which the dependent variables were overall workplace fairness; fairness of decision-making; fairness of treatment and distributive fairness. The regression analysis, shown in Table 1, examined the influence of worker judgments concerning the amount of voice they received in their workplace on their evaluations of the overall fairness of their workplace. The results indicate that employee judgments about voice shaped employees’ evaluations of overall workplace fairness (beta = 0.36, p < .001, in the case of overall procedural fairness) In addition, the potential value of mandated voice depends upon finding that there are benefits of requiring organizations to provide opportunities for voice on the part of their employees. Did believing that voice was required by law lead employees to evaluate their workplace as more procedurally just? The results of the same regression analysis also indicate that there was a direct influence of whether voice was required on all three procedural justice evaluations and on the index of distributive justice. The findings indicate that required voice has more influence on these overall justice ratings (beta = 0.08, p < .05, for overall procedural justice). 2/15/2016 16 Finally, there was no interaction with any justice evaluation, suggesting that whether voice was mandated did not influence the weight that employees placed upon their judgment about the amount of voice they had (beta = 0.00, n.s., for overall procedural justice). In other words, people put an equal weight upon whatever level of voice they had irrespective of whether they thought it was required. But, they also thought that a workplace in which voice was required was a more just workplace. What explains people’s judgments about whether voice was legally required in their workplace? In particular, we wondered whether procedural features of pay talks -their prevalence and the degree to which they were expected -- influenced whether people: (1) felt that they had voice and (2) that voice was required by law. Figure 1 shows the results of a causal model that examined the extent to which these procedural features shaped both judgments and, through them evaluations of the favorability of outcomes and the fairness of procedures. The analysis shown in Figure 1 is built upon the findings of Table 1, i.e. that perceived amount of voice; whether or not that voice is viewed as mandated; and assessments of outcome favorability in the workplace all independently shape the perceived overall procedural justice of one’s workplace. The analysis further assumes that evaluations of prevalence and expectedness of pay talks influence evaluations of the amount of voice; judgments about whether or not that voice is viewed as mandated; and assessments of the favorability of workplace outcomes. Further, evaluations of prevalence and expectedness are allowed to directly shape procedural justice judgments. Figure 1 shows all significant paths in the model. What do the results shown in Figure 1 indicate? They first suggest that the pervasiveness and expectedness of pay talk 2/15/2016 17 procedures influenced both perceived voice and perceived mandated justice. The prevalence of pay talk procedures was the primary factor shaping perceived voice; while whether pay talks were expected was the primary factor shaping whether employees believed that pay talks were legally mandated. Further, both prevalence and expectancy also directly shaped procedural justice judgments. Finally, both prevalence and expectancy shaped employee’s judgments about the favorability of the decisions resulting from pay talks, which also shaped procedural justice. All in all, the findings suggest that the prevalence and expectancy of pay talks influenced, but did not wholly determine perceived voice and perceived legality. These findings are also helpful because they support the suggestion that views about the legal status of pay talks are not a simple reflection of judgments concerning the amount of voice that exists in the workplace. The two judgments are related (r = 0.57). However, they have different antecedents: prevalence in the case of perceived voice and expectation with the legal status of pay talks. These distinct antecedents suggest that different issues were salient to employees when they were trying to decide how much voice they had and whether that voice was required by law. In summary, the first question addressed by us was whether the voluntary/mandated distinction is important when people were making judgments about overall workplace fairness. The findings indicated that both judging that you had voice and believing that voice was legally mandated had a positive effect in encouraging overall judgments of workplace fairness. However, these effects are additive in nature and do not interact. In other words, at any given level, voice has a particular strength of influence upon overall justice judgments and this effect is not influenced by whether the 2/15/2016 18 voice is believed to be mandated. Conversely, people think the workplace is more just if voice is mandated, but this effect does not vary depending upon the level of voice that they receive. Effect of receiving voice on legitimacy and compliance Beyond their influence on estimates of the general level of procedural justice in their company the level of perceived voice and whether employees thought that voice was legally mandated might shape views about the legitimacy of the organization and compliance with company rules. To test this possibility we used regression analyses with two dependent variables: overall evaluations of the legitimacy of workplace rules and general compliance with those rules. The independent variables were the same as those used in Table 1. Table 2 shows the results of an analysis similar to that already outlined in Table 1, but focused upon effects of degree of voice on legitimacy and compliance. Interestingly, the pattern was not the same as the one which was found with procedural justice. With both overall evaluations of legitimacy and general rule compliance the primary effect of voice emerges as an interaction between the degree of perceived voice and whether that voice was judged to be mandated. Here whether voice is viewed as required, shapes the weight it is given in influencing legitimacy and compliance. To determine the nature of the interaction effect, perceived voice was used to explain legitimacy and compliance separately within subgroups of employees who thought it was and was not required by law. In the case of legitimacy, the amount of perceived voice that employees thought they had received explained 1% of the variance in legitimacy when it was not required (p > .05) and 5% when it was required (p < .01). 2/15/2016 19 With compliance the amount of perceived voice that employees thought they had explained 0% of the variance in compliance when it was not required and 3% when it was required (p < .01). Hence, in both cases giving people voice had more influence upon their attitudes and behaviors when they thought they were legally entitled to the voice. When people thought that their voice opportunities were provided through the good graces of management, those voice opportunities did not influence neither their attitudes nor their behaviors. We can conducted a similar analysis to examine the influence of judgments of the prevalence and expectedness of pay talks. The influence of these factors is shown in columns 3-6 of Table 2. These analyses show a similar interaction to that detected with whether or not voice was viewed as legally mandated. This interaction was particularly strong in both cases in which the dependent variable was compliance. To determine the nature of the effect in the case of prevalence, perceived voice was used to explain legitimacy and compliance separately within subgroups who thought voice was and was not prevalent within the company. In the case of legitimacy, the amount of perceived voice that employees thought they had explained 0% of the variance in legitimacy when it was not prevalent (not significant) and 7% when it was prevalent (p < .001). With compliance the amount of perceived voice that employees thought they had explained 0% of the variance in compliance when it was prevalent (not significant ) and 6% when it was not prevalent (p < .01). Hence, in both cases giving people voice had more influence upon their attitudes and behaviors when they thought that voice was widespread within their company. 2/15/2016 20 To determine the nature of the effect with expectation perceived voice was used to explain legitimacy and compliance separately within subgroups who thought it was and was not an expected procedure within the company. In the case of legitimacy, the amount of perceived voice that employees thought they had explained 0% of the variance in legitimacy when it was not expected (not significant) and 6% when it was expected (p < .01). With compliance the amount of perceived voice that employees thought they had explained 0% of the variance in compliance when it was expected (not significant) and 5% when it was not expected (p < .05). Hence, in both cases giving people voice had more influence upon their attitudes and behaviors when they thought that voice procedures were expected. These findings suggest that whether or not employees have voice in making decisions about pay and promotion can influence their views about the overall legitimacy of rules and can impact upon their general compliance with workplace rules. The findings suggest that the influence of degree of voice is stronger when the voice people are receiving is perceived by them to be mandated by law. Effect of general level of procedural justice in the organization on legitimacy and compliance. We have shown that degree of voice that people feel they have in their workplace in the form of pay talk participation influences three general reactions to their organization: overall procedural justice judgments; legitimacy judgments and compliance behavior. The effect on overall procedural justice is a main effect, while the influence on legitimacy and compliance is an interaction of degree of voice and whether that voice was perceived to be mandated. 2/15/2016 21 Here we address a further question. Once people have formed an overall procedural fairness judgment about their workplace what is the impact of that judgment upon their views about legitimacy and upon their compliance? Our findings suggest that those who viewed their workplace as more procedurally just were more likely to rate workplace rules as being legitimate (r = .29, p < .001) and also more likely to comply with those rules (r = .12, p < .01). Hence, procedural fairness contributed to a rule following organizational climate. Is that influence affected by whether or not the initial view about the overall level of procedural justice in the workplace was created in a situation in which employees thought their voice was voluntary or required? In other words, do the conditions under which overall judgments of procedural justice are formed shape the impact of those judgments? We can examine this possibility through a regression analysis similar to those shown in the prior tables. The results are shown in Table 3. They suggest that there is an interaction between whether overall judgments of procedural justice are or are not due to what employees believed to be legally required voice, and the impact of such overall procedural justice judgments on legitimacy and compliance. What is that impact? When procedural justice resulted from required voice, it explains 13% of the variance in legitimacy; 11% of the variance in compliance (both significant, p < .001). When procedural justice resulted from voice that the employee thought was voluntary, it explained 5% of the variance in legitimacy (p < .05); 0% of the variance in compliance (not significant). An examination of the pattern with prevalence and expectation supports the general argument already outlined. There are interactions for both in the case of 2/15/2016 22 compliance. With low prevalence procedural justice explains 4% (p < .05) of the variance in legitimacy and 0% (not significant) of the variance in compliance. With high prevalence procedural justice explains 12% of the variance in legitimacy (p < .001); 6% of the variance in compliance (p < .001). Similarly, with low expectancy procedural justice explains 6% of the variance in legitimacy (p < .01); 0% of the variance in compliance. With high expectancy procedural justice explains 9% of the variance in legitimacy (p < .001), 6% of the variance in compliance (p < .01). These findings suggest that whether voice was viewed as being required played an important role in the degree to which employee judgments about the overall level of procedural fairness in the organization shaped employee’s compliance with workplace rules. When employees believed that the voice that led to their heightened assessments of the level of procedural justice in their organization was mandated by law, they were more strongly influenced by overall procedural justice. Is voluntary voice sometimes better? While the results outlined suggest that legally requiring voice gives it more impact, it is also possible that under some circumstances voluntary voice might be more valuable. The second stage of the study which was based on experimental vignette examines this possibility. It also tests the causal argument that the mandated/voluntary distinction has an influence upon attitudes and behaviors and allows the influence of voice to be tested in a situation in which everyone receives the same level of (hypothetical) voice. The dependent variables in the vignette analysis is a summary index in which employees estimate how their attitudes and behaviors would change following the 2/15/2016 23 introduction of a new procedure in their workplace. Table 4 shows the results of an analysis of variance with two independent variables: whether the change is an increase in the level of procedural justice they would receive or is equivalent to their current level of voice (something the employee estimates) and whether the "new" procedure described in the vignette is being implemented voluntarily or by mandate of law. The dependent variable is the summary index of legitimacy/compliance (i.e. how often would you follow the rules after such a procedure is implemented). The results of the analysis indicate that there is a main effect, with required voice having more influence (F(1,595) = 11.18, p < .001). This is consistent with the findings of the survey based stage of the study. There is also an interaction between whether the procedure increases voice and whether it is mandatory (F(1,595) = 4.08, p < .05). The means for the four cells are shown in Table 5. They indicate that when a new procedure does not increase the level of voice then it has a greater impact if it is voluntary (mean = 4.65 vs. 4.88 for voluntary change). In contrast, if the procedure increases the level of voice, it has more influence if it is mandatory (5.03 vs. 5.24 for voluntary change). Hence, these findings suggest that mandating voice is effective in enhancing rule following in situations in which it provides people with increased levels of voice. The interaction finding hints at a possible limit to the generally ringing endorsement of mandated procedural justice that emerged from the survey based analysis, presented in previous sections. The experimental analysis suggests that mandated justice has the most influence upon those employees who feel that the law has created a new and more just procedure that they might not otherwise have enjoyed. In the case in which the law is already providing employees with voice, the experimental evidence suggests that 2/15/2016 24 people react most strongly to evidence of employer good character in the form of a new voluntary procedural fairness procedure. New mandated procedures do not have a strong impact upon those who are already have the proposed level of voice. Discussion The findings presented in the first part of the findings section, which were based regression analyses, suggest that among the workers studied, those who felt that the voice provided was not required were not significantly influenced by the level of voice they received. They did not view workplace rules as more legitimate and they were not higher in compliance if they felt they received higher levels of voluntarily provided voice. This would initially seem to contradict the widespread finding in procedural justice studies that voice has positive effects on workers (Lind and Tyler, 1998). It is important, first, to note that overall the degree to which employees thought voice was provided was linked to legitimacy (r = 0.17, p < .001) and to compliance (r = 0.10, p < .01). While it is beyond the scope of this paper that focus on regulation of justice, perceived voice was also related to commitment to the workplace (r = 0.39, p < .001) and to extra-role behavior (r = 0.16, p < .001). Hence, the findings of this study are consistent with previously reported findings. However, the findings of this study suggest that the favorable effects of voice reported in prior studies may have been concentrated among employees who felt that the voice they were experiencing was mandated by law or was in some other way made prevalent or expected within workplaces. It is also possible that this workforce is one in which mandated voice might be especially important. The employees in this study were found to be generally suspicious of the motives of management. For example, when asked whether the “procedures used 2/15/2016 25 to make decisions about pay in your current work organization” “reflect a desire by the company to do what is best for employees like yourself” only thirty-one percent agreed. Similarly, only twenty seven percent agreed that they reflected a desire by management to “make sure your needs are taken into consideration”. Finally, only twenty two percent agreed that the compensation procedures used were “generally fair”. Hence, the employees studied, who constituted a random sample of Israeli employees, were generally suspicious and mistrustful of the motivations of their management. It is possible that a group of employees who began with higher levels of trust in the motivations of the management of their companies would be more positively influenced by voice that occurred without the force of legal mandate. As has been noted, the force of such voluntary voice would be as an indicator of benevolence and concern by management, something that might be more powerful in a population of employees with more positive views of the benevolence and concern generally reflected in the motivation of their managers. Policy implications If one is interested in being able to shape the rule related behavior of employees in work organizations these findings suggest an important mechanism for achieving that objective. The overall conclusion of the findings of this study is that mandating the use of fair procedures when companies are evaluating employees for pay increases or promotions has positive consequences in terms of increased employee rule following behavior. The answer to the general question of the required role of the state in shaping new governance techniques seem to be straightforward. Participants in our study associated business practices which are driven and shaped by the state as more 2/15/2016 26 meaningful and reliable procedures. While the dangers of mandating voice are clear on a theoretical level, this study did not find that they occurred in actuality. Three findings support this general argument. First, when employees believe that their voice opportunities are mandated by law, that belief enhances their evaluation of the general procedural justice of their workplace. Second, when employees believe that their voice opportunities are mandated by law, the occurrence of voice is linked to legitimacy and compliance. Third, when employees believe that their workplace has overall procedural justice, a belief enhanced when they believe voice is mandated by law, overall procedural fairness is linked to legitimacy and compliance. Hence, mandated justice is more influential in several ways. However, our findings also hint at a limit of mandated justice. The experimental vignette based manipulation of a procedural change presents employees with a highly fair procedure for performance appraisal, a procedure which they are asked to imagine is being enacted in their workplace. When employees believe that they already have a mandated procedure, they are only influenced by additional actions when they are voluntary. Hence, beyond a certain level of voice employees focus upon actions that reflect the good intentions of management. This part of our findings corroborates the findings of Greenberg (2003) on the inferences employees make about mangers who are following voluntary procedures. Finally, our study suggests several features of a procedure that are linked to employee views that it is fair and that it is mandated. These features are prevalence and expectancy. Employees are more likely to indicate that procedures are fair when they believe that most employees in the workplace receive them. They also indicate that they 2/15/2016 27 are fair when they are expected. As demonstrated in the path analysis, both of these features also lead employees to believe that procedures are mandated by law. The distinctness of the antecedents of procedural fairness judgments and judgments about whether procedures are mandated addresses one of the key aspects of concern in this study: the fact that it deals with perceived legality. In reality none of the employees studied were in a jurisdiction in which pay talk procedures are actually mandated by law. Hence, it is important to show that such judgments are distinct from procedural justice evaluations. Two factors suggest that they are distinct. First, separate effects are found for perceived procedural justice and of whether justice is believed to be mandated. If these two judgments were the same, they would not lead to independent effects. Second, the antecedents of the two judgments are not the same. When we distinguish between prevalence and expectancy, we find that the influence of these two factors upon perceived amount of voice and upon whether voice is mandated differs, suggesting that the two judgments have distinct antecedents. Hence, we believe that this study does a reasonable job of examining legal mandates as a distinct issue. Psychological implications The key finding of the study is that employees were found to be indifferent to the motivations of their employer. In fact, they were more affected by voice in situations in which it revealed less about the motives of their managers and other organizational authorities. When voice was legally mandated by the government it had a stronger influence. This finding seems to contradict Greenberg's (2003) correspondent inference theory of fairness evaluation, discussed earlier. Nonetheless, the reader should note few major differences between our study and that of Greenberg. First, his focus was on 2/15/2016 28 distributive justice judgment rather than the effect of a given voice procedure. Second, his study focused on a corporate mandate, rather than the state level mandate explored in this study, so his approach raises different levels of rights' entitlement and social values. Third, his study focused mainly on employee’s perceptions of the manger’s motivation, while our study focused on the effect of voice procedures on employee’s attitudes and behaviors. One possible explanation for the fact that employees seemed to be indifferent to the motivation of the employer is a key social psychological argument – the fundamental attribution error (Ross, 1977). That argument is that people underestimate the role of situational pressures in shaping behavior. Hence, when a person is compelled to take some action by external pressure, observers nonetheless infer that the action reflects his character. Here, employees are not discounting the mandated nature of the justice provided. Instead, they are using the provision of a fair hearing procedure to infer that their employer is just. One question in particular is illuminating in this regard: Do the procedures of your company “reflect a desire by the company to do what is best for employees like yourself?”. In the mandated condition the mean is 4.02, while in the voluntary condition it is 3.02 (t(499) = 6.12, P < .001). In other words, employees suggested that management was more concerned about their well being when they provided more procedural justice if they believed that it was mandated by the law. Hence, employees did not connect the legal mandate to inferences about manager character, suggesting that the mandated nature of procedures was not a salient feature. 2/15/2016 29 Another possible explanation for this finding is that employees are focused upon issues of trust, but their focus is at the government level. While mandated procedures may not speak to the motivations of managers, they do speak to the intentions of the law and legal authorities, i.e. those who mandated justice. A consequence of legally mandating procedures is that people believe that they can trust government. They also feel that government and law recognize and protect them and their rights. If so, the greater impact of mandated procedures does not indicate that people do not care about inferences of character. It rather suggests that the focus of those inferences can vary. If management voluntarily creates a procedure, then that procedure leads to a focus on the character and trustworthiness of management. If legal authorities create the procedure, they become the focus of attention. Finally, we have shown using experimental manipulation that employees with varying experience with voice procedures differed substantially in their appreciation for a new state initiated voice procedure. Those who viewed the change in procedures as an improvement in relation to their current situation reacted more favorably to a mandate requiring voice in comparison to the group which was told that the procedure was a voluntary initiative of their employer. This suggests that they lack confidence in voluntary pronouncements from an employer who is currently not providing them with voice. On the other hand, if the employer is currently providing a high level of voice, a voluntary provision of new voice has the most influence. Implications for behavioral analysis of law The findings outlined have implications that go beyond psychology. One of the main debates among behavioral economists who study the interaction between formal 2/15/2016 30 laws and social norms are related to the possible effect of law on social norms. The research on this area seem to suggest conflicting views, while some lines of scholarship suggest that formal laws carry negative effects for social practices and norms, while other lines of literatures present the opposite view. One studied effect within the "negative" view is related to the ability of formal law to crowd out internal motivation and to distract social capital, hence suggesting caution with regard to external legal intervention in social practices. In contrast, the "positive" effect was hailed as well. The law was shown in recent years to carry an expressive effect where making a social norms into a law send an important message to citizens of the social importance of the norm. Behavioral economists argue that an important motivation for rule following is adherence to social norms. Hence, it is damaging if the enactment of a legal rule undermines the role of social norms in shaping compliance (e.g. Bernstein, 1996; Brown, 2001; Kagan, Gunningham & Thornton, 2003; Posner, 1996). This section reviews some of the mechanisms suggested by legal scholars and economists to account for this potentially destructive effect of transforming a socially regulated behavior into a legally mandatory one. Crowding out. Employees are motivated to follow rules both for instrumental reasons (rewards and punishments) and to adhere to social norms. If employees believe that their employers are enacting “fair” procedures because those employers are required to do so and are, hence, more likely to be themselves motivated by concern about punishments for noncompliance, then employees themselves will be less likely to view rule following as a social norm, and less likely to comply because they think it is 2/15/2016 31 normative and appropriate. Hence, if legal requirements “crowd out” the influence of social norms on behavior in employers and employees, their overall effect on employee behavior will be negative. Frey is the leading experimental economist to explore possible destructive effects of law on social norms, marked by the crowding out of internal and non-calculative motivations that can occur when external motivations are introduced. In one of this famous studies, Frey (1998) found that community residents focused most heavily upon economic issues, and diminished their attention to social norms, when compensation was a central issue in a policy decision. More generally, this argument suggests that when people are led to focus on instrumental reasons for engaging in some action, their internal motivations for engaging in that action become less important. The related “fine is a price” mechanism describes a phenomenon that Gneezy and Rustichini (2000) documented in the context of daycare centers that assessing fines upon parents who were late in picking up their children at the end of the day. Imposing a fine on late parents was counterproductive, resulting in an increased number of late pickups. Apparently, the fine led parents to feel that they buy the right to arrive late. In this sense, law undermined the preexisting social norm of arriving on time. Parents felt that this norm was less relevant to their behavior when the issue was defined as an economic one. Following a similar line of reasoning, Cohen (1991) discusses the negative impact of legality on social capital via the concept of the “Good Samaritan.” One of the arguments he uses is that the positive reputation associated with being a Good Samaritan will disappear if helping becomes a legal requirement. The implications of this argument 2/15/2016 32 is that if employers are forced by law to behave in a certain way to their employees the social reputation that employers gain from behaving in a fair way to their employees is lost. Employees will not infer that their employer is a good person because that employer provides them with voice if it is required, so they will not infer that there is a social norm of employer concern in the workplace. Knowing that their efforts will go unappreciated, employers consequently have no reason to act on behalf of employees, since they will receive no credit for such helpful behavior. Similarly, people may be less confident that their own actions are a reflection of their values when those actions are required by law (Stout and Blair, 2001). To sum up, this line of studies suggests that when the law requires employers to create mandatory voice procedure to listen to employees in the workplace this can influence both employers and employees. First, employers focus on their own instrumental motivations, for example avoiding fines for noncompliance, rather than upon the desire to help employees. Employees, in turn, focus upon employer’s instrumental reasons for providing the procedure and do not view it as expressing social values and practices that they might be motivated to adopt and follow voluntarily Positive effects of legality. The literature in experimental economics makes it equally possible to view government intervention as something that might have positive motivational consequences on employees. One advantage of a law over a social practice is that a law is an entitlement that is due to all. This has two favorable consequences for employees, demonstrated empirically in our study. The first is permanence and predictability. For example, in the context of employment relations, since the law creates an entitlement people do not have to worry about whether that entitlement will disappear 2/15/2016 33 depending on the whims of their employer. In a similar way the second consequence is prevalence. Because it is due to law, the entitlement to voice will go to all workers, not just stronger employees. Hence, employees need not worry that if their skills become less valued they will lose their rights. If procedures are provided for market reasons, they are subject to the choices of managers concerning when they will be granted and who will receive them. These choices will be driven by economic considerations, not by matters of right. Studies suggest that employers are concerned about employees. For example, they do not lower wages during a recession (Bewley, 1999). However, those concerns are shaped by employer’s judgments about the influence of their policies upon worker productivity, and do not necessarily reflect any desire to behave ethically. Expressive effects. The relationship between the law and the social meaning of behaviors is also discussed in the literature on the expressive functions of the law (Sunstein, 1996; Cooter, 2000). The expressive function of the law is usually referred to as the effect of law on behavior that is mediated by social norms. In other words, expressive law focus on the ways through which the law communicates and hence strengthen the social norms of a given society, leading the provision of some right to be viewed by those who receive it as signaling a highly acceptable social norm. For the reasons already outlined, this is important because highly consensual social norms, in turn, shape rule following behavior (see Feldman, 2008 for a review). When the law defines a social procedure as a legal requirement, the message which is conveyed to society is that this right is linked to social status and standing in the society, and this is likely to increase the value that all members of society will assign to this right. This value is going to be derived both from the message that many members of 2/15/2016 34 society consider this right as important, as well as from the public association with the state and state actors (Cooter, 1998; McAdams, 1997; Kahan, 1996; Lessig, 1995;). According to the expressive perspective, people will appreciate a procedure that becomes mandatory, as the transformation to a required procedure will inform members of society that the government views this procedure as socially desirable and reflective of societies’ values. Requiring that employees receive justice is a statement about the worth that government places upon citizen’s rights and well being. Implications for legal policy making The results address a key question in law, both on the general level and in particular in the context of voice procedures. The specific question, we attempted to answer is whether the law should intervene in work settings and mandate desirable procedures. The findings suggest that designing legal institutions so that they require authorities to act via the principles of procedural justice is likely to be beneficial (Tyler, 2007). We have shown that a law that mandates that authorities provide fair procedures and the perceived provision of those procedures leads to heightened legitimacy and greater employee compliance with workplace rules. Indeed, our findings suggest that the effect of voice is likely to be especially positive in situations where employees widely experience fair procedures for pay talks and have come to view such procedures as an expected part of their workplace. Our findings further suggest that it is important for procedures to be mandated across the organization. One consequence of legal regulation is that voice in pay talks becomes a right or entitlement, something that everyone in the workplace receives by virtue of their status in society. In contrast, with voluntary voice procedures management 2/15/2016 35 is free to provide such voice only to highly valued employees. Our findings also suggest that when voice procedures are consistent and prevalent in the organization, employees infer that the procedure is legally mandated. Thus, the legal policy maker should not only engage in mandating justice, but also make sure it is implemented in an equal and consistent way in organization. We believe that our findings apply also to the general question, of the pros and cons of legal intervention in voluntary social practices. In the general debate discussed above between the positive expressive effects of law and its ability to crowd out motivation, our study does seem to make a contribution. When focusing on those who are likely to use certain procedures, the benefit from knowing that they are legally entitled to a certain procedure overshadows the costs associated from their inference on the good nature of those who operate this procedure. At the same time, for those who have no doubt about their entitlement to a certain procedure, they reach a stage, where voluntary procedure will be more appreciated. However, this motivational inference seems to occur only for the more privileged members of society who are less likely to benefit from state assurance of their procedural rights. Limitations The main limitation of this paper is related to the fact that the independent factors we measured were self-reported. The effect of mandatory justice was measured by asking participants a series of questions regarding their perception of whether the law required that their employer consult with them with regard to the option of giving them voice. In reality, voice was not mandated under Israeli law, so the perception of a legal mandate, which psychologically real, was a departure from legal reality. 2/15/2016 36 Ideally we would create a situation in which employees are randomly assigned to work in situations that do or do not require pay talks. However, this was not possible. This problem is typical of difficulties confronting those who want to study the impact of legal regulations. Legal authorities are seldom willing to randomly assign legal procedures of different types across people or jurisdictions, since the equal application of the law is a core element of objective legal fairness. Hence, the use of indirect approach such as ours is common. We attempted to control for this issue in three ways. First, we controlled for the level of perceived voice in pay talks in our analyses of the effect of mandated justice. If the two issues are confounded in employee’s minds, i.e. if they simply thought voice was required because they received a lot of it, no independent effect of mandates should emerge. However, distinct mandate effects were consistently found. Second, the study showed that antecedent conditions – prevalence and expectations – did not have the same influence upon judgments about the amount of voice and of whether voice was mandated. If the two processes are the same, they should have similar antecedents. Third, the experimental vignette indicates that the issue of mandated vs. voluntary voice has a direct influence upon attitudes and behaviors. The fact that we have used a representative sample of israeli employees while having some advantages could obviously carry some limitations, in terms of generalizability to United States employees, as well as to other societies beyond Israel. Unfortunately, there are very few studies that have attempted to compare the prevalence of values such as fairness and of the factors shaping the rule of law among israeli and Americanemployees. Overall it could be said that in comparison to the Unitee States 2/15/2016 37 studies have found that Israeli society has deeper roots in solidarity-based collective action, as well as a more pluralist attitude toward the sources of norm-generating authorities, including the state, religion, and military (Shprinzak 1987; Smith et al. 2002). Correspondingly, some studies find deference to legal authority in Israel to be generally low relative to other societies (Yagil & Rattner 2002). A recent comparative study (Feldman and Lobel, 2008) has indeed demonstrated pervasive gaps both in behaviors and attitudes in the context whistle-blowing between israeli and U.S employees. Hence, it is our hope that further studies will be conducted in other cultures on this important question of employee’s evaluations of legal interventions to establish whether mandated justice has a positive effect similar to that found in this study in societies besides Israel. Summary Given the numerous studies showing the many positive influences of procedural justice, it would be natural if legal authorities thought of requiring them within organizations where rule following is important. One example is work organizations, where recent corporate corruption scandals have made clear the costs to both businesses and to society when employees violate rules of appropriate conduct. So, should procedural justice be mandated by law? We outline theories for and against that approach and then used both surveys and experimental survey with a representative sample of employees in Israel, to test among them. We believe that the findings we presented suggest that at least in this context, employees' associate legal requirement with a positive impact of voice procedures. Those employees who believed that the voice they have received was legally required were more likely to be positively influenced by voice, above and beyond the current level of 2/15/2016 38 voice they had in their current workplace. Based on these further analyses the normative recommendations we wish to take from this study are more refined than simply calling for increased regulation of voice. On the other hand, it is our belief, that while the empirical findings are based on the specific context of voice – pay-talks, some of the normative implications could be generalized to all forms of voice interactions. 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Boulder, Colorado: Westwood Press. Yagil, D. & Rattner, A. (2002). Between commandments and laws: Religiosity, political ideology and legal obedience in Israel. Crime, Law, and Social Change, 38, 185-209. 2/15/2016 45 Table 1: Relationship between Judgments about the Degree of Voice In Pay-Talks, Judgments About Whether That Voice is Legally Mandated and Employees' Evaluations of the Overall Procedural and Distributive Justice of The Workplace. Is the procedure believed to be legally mandated?(A) How much voice do people believe they have ? (B) A*B Perceived quality of outcomes (C) A*C Gender Age Income Economic Status Native? Education Years working Hours working Adj. R.sq. Column 1 Overall Procedural Justice .08* Column 2 Quality of Decision Making .09* Column 3 Quality of Treatment .13** Column 4 Distributive Fairness .09** .36*** .28*** .23*** .10*** .00 .50*** .05 .00 .03 -.10 -.05 -.05 -.01 -.10** -.02 58% .01 .53*** .04 .01 .00 -.02 -.01 -.01 .00 -.11* -.02 54% .02 .54*** -.01 -.01 .02 -.06 -.07 -.01 .02 -.12* -.01 53% -.01 .78*** -.02 -.08** .00 -.01 -.04 -.01 -.01 .00 -.01 76% Note. The dependent variables are evaluations of the justice of the workplace. *p < .05; **p < .01; ***p < .001. 2/15/2016 46 Table 2. Relationship between Judgments about the Degree of Voice in Pay-talks, Judgments about Whether That Voice is Legally Mandated and the Legitimacy of Workplace Rules and Compliance with Those Rules. How much voice do employees believe they have? (A) Is the procedure believed to be legally mandated (B) Prevalence of voice(BB) Expectation (BBB) A*B A*BB A*BBB Quality of outcomes (C) B*C BB*C BBB*C Gender Age Income Economic Status Native? Education Years working Hours working Adj. R.sq. Column 1 Legitimacy -.04 Column 2 Compliance -.03 Column 3 Legitimacy -.03 Column 4 Compliance .06 Column 5 Legitimacy .03 Column 6 Compliance -.05 -.07 -.10 --- --- --- --- ----.13* ----.33*** -.07 -----.07 .05 .02 -.05 .00 .04 -.07 .05 13% ----.15* ----.20*** -.02 ----.03 .11 .01 .07 -.06 -.02 -.06 .03 5% -.06 ----.12^ --.30*** --.04 ---.05 .09 .04 .01 .01 .05 -.06 .06 13% -.22*** ----.19** --.16** --.05 --.04 .13* .07 .13* -.08 -.01 -.05 .06 7% ---.05 ----.03 .30*** ----.05 .06 .08 .00 -.03 -.01 .06 -.05 .08 11% ---.24*** ----.13* .17** ----.08 .02 .11* -.01 .06 -.05 .00 -.05 .07 6% Note. The dependent variables in this analysis are the employee’s overall ratings of the legitimacy of workplace rules and their compliance with those rules. *p < .05; **p < .01; ***p < .001. 2/15/2016 47 Table 3. Relationship between Ratings of Overall Workplace Justice, Judgments of the Legitimacy of Workplace Rules and Compliance with those Rules. How procedurally just is the workplace ? (A) The the voice procedure believed to be required (B) Prevalence of voice(BB) Expectation of receiving voice (BBB) A*B A*BB A*BBB Quality of outcomes (C) B*C BB*C BBB*C Gender Age Income Economic Status Native? Education Years working Hours working Adj. R.sq. Column 1 Legitimacy Column 2 Compliance Column 3 Legitimacy Column 4 Compliance Column 5 Legitimacy Column 6 Compliance .13 .03 .06 .01 .10 .02 -.08 -.08 --- --- --- --- ----- ----- -.04 --- -.11 --- --.09 --.17** .12^ ----.24** -.10 -----.05 .04 .02 -.03 -.01 .05 -.03 .05 13% .28*** ----.17* -.14 ----.05 .10 .01 .08 -.08 .00 -.05 .02 7% ---.03 --.27*** --.12 ---.06 .05 .06 -.02 .00 .03 -.03 .05 13% --.17* --.18* --.02 --.05 .12* .06 .09 -.06 -.04 -.06 .04 6% ----.06 .24*** ------.09 -.07 .04 .02 -.06 .00 .04 -.03 .06 13% -----.12^ .16* -----.05 .02 .09 -.02 .01 -.05 -.02 -.04 .04 6% Note. The dependent variables in this analysis are the employee’s overall ratings of the legitimacy of workplace rules and their compliance with those rules. *p < .05; **p < .01; ***p < .001. 2/15/2016 48 Table 4. Effect of Prior Voice and Manipulated Voice Procedure on Legitimacy/Compliance Index. Amount of voice prior to the new procedure(A) Whether the new voice is voluntary or required (B) A*B Residual Total *p < .05; **p < .01; ***p < .001. d.f. 1 1 MS 20.34 0.00 F 11.18*** 0.00 1 595 598 7.43 9.31 4.08* 2/15/2016 49 Table 5. Effect of the Comparison between Prior Voice and Manipulated Voice on Legitimacy/Compliance Index. "New" (manipulated) voice procedure Voluntary Required Overall mean Difference The new procedure increases employee voice 5.03 5.24 5.14 0.21 Prior voice Same as Overall new mean procedure 4.88 4.65 4.77 -.23 4.95 4.98 --- Difference 0.15 0.41 --- Note. The dependent variable is the employee’s rating of their attitudes and behaviors after the new procedure is put into place. High scores indicate more favorable attitudes and behaviors. 2/15/2016 50 32% How much voice do you have? .22 .39 .15 Prevalence of pay .33 talks .11 Outcome favorability .48 .25 .13 Pay talks expected? .07 .28 .09 Is voice legally mandated? 12% Figure 1. Antecedent of perceived workplace justice. Procedural justice 60% 2/15/2016 51