This study explored pay-setting managers’ experiences regarding the individualized pay-setting process. Seven semi-structured group-interviews with pay-setting managers (N = 28) from four private companies in Sweden were conducted. A thematic analysis identified three main themes: 1) Prerequisites for pay-setting, which included conditions for pay-setting work and experiences of these conditions; 2) Assessment and feedback, which included experiences of employee performance assessment and feedback provision; 3) Rewards, which covered experiences of different pay incentives and the relationship between performance and pay. The pay-setting process was considered to include many obstacles as well as a few opportunities. Without proper pre-requisites to assess employee performance, the possibilities to adequately reward performance were experienced as limited, which, in turn, hampered possibilities to justify both the assessment and pay raise. Taken together, this study underscores the conflict between intentions relating to how to carry out a pay-setting process and managers’ difficulties to actually accomplish this.

Building on the Ability-Motivation-Opportunity framework, we investigate managers’ ability, motivation, and opportunity as predictors of managers’ self-reported justice enactment during pay setting. Data from 168 managers from a large industrial company in Sweden were analyzed with hierarchical multiple regression analyses to predict the four dimensions of enacted justice (distributive, procedural, informational, interpersonal). Ability indicators contributed to all justice enactment dimensions, with self-efficacy in one’s role as pay-setting manager being positively related to all justice enactment dimensions. Motivation indicators contributed to three justice enactment dimensions (not informational), with managers’ outcome expectations of pay setting being positively related to distributive justice enactment. Opportunity indicators contributed to three justice enactment dimensions (not interpersonal), where social support in the pay-setting process predicted these justice enactment dimensions. Demographics and personality variables only explained additional variance in interpersonal justice enactment. The paper sheds light on the managers’ side of justice in pay setting, and highlights the relevance of resources to equip managers with ability, motivation, and opportunities in order to perceive that they can be fair during pay setting.

Perceiving a pay system as just has been suggested to be a precondition for individualized pay to have a motivating effect for employees. Supervisors' enacted justice is central for understanding the effects that pay setting can have on employee attitudes and behavior. Yet, enacted justice has received little research attention, in regard to both organizational justice and pay-related topics. This study examines the effects of employees' perceived pay justice and supervisors' enacted justice, as well as the degree of congruence, on employees' work-related attitudes and behaviors. Questionnaire data from employees (N= 566) matched with data from their pay-setting supervisors (N= 208), employed in a Swedish manufacturing company, were analyzed. Results of polynomial regression with response surface analysis show that employees' perceptions of pay justice were important for their work-related attitudes and behaviors and that supervisor-employee congruence regarding pay justice was positively related to employees' attitudes and behavior, particularly when the ratings concerned high levels of justice. The results not only highlight the importance of developing a pay system that is perceived as just by employees but also emphasize the importance of reaching a congruence between supervisors' and employees' perceptions of high fairness, as this has positive implications for employees' attitudes and behaviors.

Lonesattningen i privat sektor sker med olika grad av koppling till den individuellaprestationen. Vissa avtal ger inget eller endast begransat utrymme for verksamhets- ochindividnara lonesattning. ...

Foretags- och medarbetarnara lonebildning blir allt vanligare. Den utvecklingen baseras pa antaganden om att lon och loneutveckling bidrar till okad motivation och goda arbetsprestationer, och att ...

Purpose: In organizations using individualized pay setting, where pay raises are based on job performance and the quality of work, managers have a central role as they execute the organizations’ pa ...