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It's so hard to be fair.
1Columbia Business School, New York, USA. jb54@columbia.edu
Harvard Business Review
|March 7, 2006
Summary
Practicing process fairness, where employees feel heard and respected, benefits companies by reducing turnover and fostering innovation. Despite its low cost, managers often resist implementing it due to psychological and systemic barriers.
Area of Science:
- Organizational Behavior
- Management Science
Background:
- Employee perceptions of fairness significantly impact organizational outcomes.
- Process fairness, encompassing feeling heard, understanding decisions, and respect, yields substantial business benefits.
- Despite proven advantages, consistent implementation of process fairness remains a challenge in many organizations.
Purpose of the Study:
- To examine the paradox of low process fairness implementation despite its benefits.
- To explore psychological and systemic barriers managers face in adopting process fairness.
- To identify actionable strategies for promoting process fairness within organizations.
Main Methods:
- Analysis of existing research on process fairness and its impact.
- Exploration of managerial resistance through psychological and organizational factors.
- Review of effective training program formats and implementation strategies.
Main Results:
- Process fairness reduces legal costs, employee turnover, and boosts support for strategic initiatives and innovation.
- Managerial resistance stems from undervaluing low-cost initiatives, misperceptions of current practices, corporate policies, and avoidance of discomfort.
- Training programs, preparing managers for emotional challenges, and executive role-modeling are effective strategies.
Conclusions:
- Process fairness is a critical, low-cost driver of organizational success.
- Overcoming managerial resistance requires targeted interventions and systemic support.
- Promoting process fairness is a shared executive responsibility, essential for a thriving organizational culture.