Please use this identifier to cite or link to this item: https://doi.org/10.1287/msom.1070.0189
Title: A model of fair process and its limits
Authors: Wu, Y. 
Loch, C.H.
Van Der Heyden, L.
Keywords: Agency theory
Engagement
Fair process
Motivation
Social preference
Transparency
Issue Date: 2008
Citation: Wu, Y., Loch, C.H., Van Der Heyden, L. (2008). A model of fair process and its limits. Manufacturing and Service Operations Management 10 (4) : 637-653. ScholarBank@NUS Repository. https://doi.org/10.1287/msom.1070.0189
Abstract: Fair process research has shown that people care not only about outcomes, but also about the process that produces these outcomes. For a decision process to be seen as fair, the people affected must have the opportunity to give input and possibly to influence the decision, and the decision process and rationale must be transparent and clear. Existing research has shown empirically that fair process enhances both employee motivation and performance in execution. However, work to date has not addressed why fair process is so often violated in practice. This paper breaks new ground by analytically examining the subtle trade-offs involved. We develop a model of fair process in a principal-agent (i.e., manager-employee) context, rooted in psychological preferences for autonomy and fairness. We show that indeed fair process will not always be used, and why the hoped-for benefits may be insufficient to convince management to use fair process. ©2008 INFORMS.
Source Title: Manufacturing and Service Operations Management
URI: http://scholarbank.nus.edu.sg/handle/10635/44119
ISSN: 15234614
DOI: 10.1287/msom.1070.0189
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