Research On The Relationship Between Pay Procedural Fairness And Pay Satisfaction

Pay management, which is the key issue of the enterprise management, plays a prominent role in recruiting, motivating and retaining employees and thus is central to building competitive advantage. Procedural fairness, which is one of two factors of the organizational fairness, has an influence on employees' behaviors and outcomes and transfers employees' attention on distributive fairness. With 228 employees, this research integrating pay management with procedural fairness discusses the relationship between pay procedural fairness and pay satisfaction. The results indicate:(1) Five key factors including employee participation, leader's behavior, performance appraisal, pay preparation and strategy and regulation affect pay procedural fairness.(2) Gender, age and education don't influence employee's expectation of five key factors, but years of work and the corporation going public have an influence on them.(3) There has difference between employee's expectation of five key factors and their perception of the use of these factors; employees' expectation is higher than their perception.(4) Employee's pay satisfaction is negatively correlative with employee's expectation besides pay preparation, positively correlative with employee's perception and the margin of expectation and perception.(5) Employee's income alleviates the relationship between employee's perception and their pay satisfaction.