Understanding pay plan acceptance: The role of distributive justice theory

As U.S. businesses shift from individual rewards toward more aggregated pay systems, they must address the issue of reward allocation within groups. Specifically, should aggregate rewards be allocated equally to all group members, or should individual contributions be recognized? In this paper, the multiprinciple view of distributive justice is used as a starting point to predict employee reactions to different allocation methods. Propositions for future research that could facilitate the implementation of alternative pay plans are offered.