flowchart LR A[My Outcomes / My Inputs] -- compare --> B[Other's Outcomes / Other's Inputs] A -. equity .-> E[Satisfaction] A -. inequity .-> I[Tension → behavioural change] style E fill:#E8F5E9,stroke:#1B5E20 style I fill:#FFEBEE,stroke:#C62828
22 Organisational Justice and Whistle Blowing
22.1 What is Organisational Justice?
Organisational justice is the overall perception of what is fair in the workplace (robbinsjudge2018?). It is one of the strongest predictors of employee attitudes and behaviour: people who feel fairly treated stay longer, contribute more, steal less, and are less likely to file complaints. The construct grew out of equity theory and matured into the four-dimension model that modern OB texts use.
Jerald Greenberg, who coined the phrase organisational justice in 1987, defines it as “the study of fairness at work” (greenberg1987?).
TipThree Working Definitions
| Author | Definition | What it foregrounds |
|---|---|---|
| Jerald Greenberg | “The study of fairness at work.” | Fairness as a workplace construct |
| Jason Colquitt | “The personal evaluation about the ethical and moral standing of managerial conduct.” | Managerial behaviour |
| Robbins & Judge | “Overall perception of what is fair in the workplace.” | Perception |
22.2 Equity Theory — the Foundation
J. Stacy Adams’s equity theory (1965) is the conceptual root of organisational justice (adams1965?). The theory says people compare their input/outcome ratio with that of a referent — a co-worker, a peer in another firm, themselves at an earlier time.
Inequity — under-reward or over-reward — is uncomfortable, and the person tries to restore equity by:
TipSix Responses to Felt Inequity (Adams)
| # | Response | Example |
|---|---|---|
| 1 | Change own inputs | Slack off, work less |
| 2 | Change own outcomes | Demand a raise; steal |
| 3 | Distort own perceptions | “Maybe I’m not as good as I thought” |
| 4 | Distort others’ perceptions | “She works longer hours, so she deserves more” |
| 5 | Change the referent | Compare with someone less fortunate |
| 6 | Leave the field | Quit |
22.3 Three Dimensions of Justice
Equity theory captured outcome fairness only. Subsequent research expanded the construct to four dimensions, often grouped as three (with interactional split into informational and interpersonal).
TipThe Four Dimensions of Organisational Justice
| Dimension | What it asks | Anchor |
|---|---|---|
| Distributive | Are outcomes (pay, promotions, work assignments) distributed fairly? | Adams, 1965 |
| Procedural | Are the processes used to make decisions fair? | Thibaut & Walker, 1975; Leventhal, 1980 |
| Interpersonal | Am I treated with dignity and respect in the process? | Bies & Moag, 1986 |
| Informational | Am I given honest, adequate explanations for decisions? | Greenberg, 1993 |
flowchart TB J[Organisational<br/>Justice] --> D[Distributive<br/>Adams 1965<br/>Outcome fairness] J --> P[Procedural<br/>Thibaut & Walker 1975<br/>Process fairness] J --> IT[Interactional<br/>Bies & Moag 1986] IT --> IN[Interpersonal<br/>Dignity, respect] IT --> IF[Informational<br/>Honest explanations] style D fill:#E3F2FD,stroke:#1565C0 style P fill:#FFF3E0,stroke:#EF6C00 style IN fill:#FCE4EC,stroke:#AD1457 style IF fill:#F3E8FD,stroke:#8430CE
22.3.1 Procedural-justice rules — Leventhal’s six
Gerald Leventhal listed six procedural rules a fair process should satisfy (leventhal1980?):
TipLeventhal’s Six Procedural Rules
| Rule | What it requires |
|---|---|
| Consistency | Same rules over time and across people |
| Bias suppression | Personal interest of decision-makers kept out |
| Accuracy | Decisions based on accurate information |
| Correctability | Mechanisms exist to appeal and correct |
| Representativeness | All relevant interests are heard |
| Ethicality | Process meets ethical standards |
22.3.2 Why managers should care
Empirical research consistently shows justice perceptions predict:
- Job satisfaction and organisational commitment.
- Trust in supervisor and management.
- Organisational citizenship behaviour (OCB) — discretionary, helpful behaviours.
- Reduced counterproductive work behaviours (CWB) — theft, sabotage, absenteeism.
- Reduced turnover intentions.
22.4 Organisational Citizenship Behaviour (OCB)
Dennis Organ defined OCB as “individual behaviour that is discretionary, not directly or explicitly recognised by the formal reward system, and that in the aggregate promotes the effective functioning of the organisation” (organ1988?). The classical five dimensions:
TipOrgan’s Five Dimensions of OCB
| Dimension | What it captures |
|---|---|
| Altruism | Helping others with work-related problems |
| Conscientiousness | Going beyond the minimum required |
| Sportsmanship | Tolerating minor inconveniences without complaint |
| Courtesy | Notifying others before acting that affects them |
| Civic virtue | Active involvement in the life of the organisation |
OCB is predicted by procedural and interactional justice — fair treatment leads people to give back beyond what their job description requires.
22.5 Whistleblowing
A whistleblower is an employee, former employee, or member of an organisation who reports illegal, unethical or illegitimate practices to parties who can take corrective action (nearmiceli1985?). Janet Near and Marcia Miceli’s foundational paper distinguishes:
TipInternal vs External Whistleblowing
| Type | Where the disclosure goes | First port of call |
|---|---|---|
| Internal | Up the organisation — line manager, audit committee, ethics officer | Yes |
| External | Outside — regulator, media, court | When internal channels fail or the issue is grave |
22.5.1 Famous whistleblowers
TipFive Famous Whistleblower Cases
| Case | Whistleblower | Year | What was exposed |
|---|---|---|---|
| Watergate | Mark Felt (“Deep Throat”) | 1972 | Nixon administration cover-up |
| Enron | Sherron Watkins | 2001 | Off-balance-sheet accounting |
| WorldCom | Cynthia Cooper | 2002 | $3.8 billion fraud |
| Satyam | B. Ramalinga Raju (self-disclosure) / earlier whistleblower e-mails | 2009 | $1.5 billion accounting fraud |
| Volkswagen | Internal engineers | 2015 | Diesel emissions defeat device |
22.5.2 Indian framework
TipIndian Whistleblower Framework
| Source | Coverage |
|---|---|
| Companies Act, 2013, §177(9) | Vigil mechanism for listed and certain other companies |
| SEBI (LODR) Regulations, 2015 | Whistleblower policy mandatory for listed entities |
| Whistleblowers Protection Act, 2014 | Public-sector whistleblowers; protection from victimisation |
| SEBI (PIT) Regulations, 2015 — Informant Mechanism | Insider-trading whistleblowing with reward |
The 2014 Whistleblowers Protection Act applies to public-sector employees disclosing corruption. Private-sector cover is currently patchier and rests largely on the company’s vigil mechanism under §177(9).
22.5.3 Predictors of whistleblowing
Research identifies four factors that make whistleblowing more likely:
- Severity of the wrongdoing — the worse the act, the more likely a person speaks up.
- Anonymity and protection — channels that protect identity raise reporting.
- Organisational climate — high procedural and interactional justice raises reporting and reduces retaliation.
- Personal characteristics — moral identity, locus of control, conscientiousness.
22.6 Practice Questions
Q 01
Equity Theory
Easy
Adams's equity theory holds that motivation and behaviour are driven by:
View solution
Correct Option: B
Equity theory is about relative fairness — the input/outcome ratio compared with a referent.
Q 02
Justice Dimensions
Medium
Match the dimension of organisational justice with what it asks:
| (i) | Distributive | (a) | Are honest, adequate explanations given? |
| (ii) | Procedural | (b) | Am I treated with dignity and respect? |
| (iii) | Interpersonal | (c) | Are processes fair? |
| (iv) | Informational | (d) | Are outcomes fairly distributed? |
View solution
Correct Option: A
Distributive → outcomes; Procedural → processes; Interpersonal → dignity & respect; Informational → explanations.
Q 03
Greenberg
Easy
The phrase "organisational justice" was coined by:
View solution
Correct Option: B
Jerald Greenberg introduced the term in 1987.
Q 04
Leventhal
Medium
Which of the following is not one of Leventhal's six procedural-justice rules?
View solution
Correct Option: C
Leventhal's six: Consistency, Bias suppression, Accuracy, Correctability, Representativeness, Ethicality. Profitability is not on the list.
Q 05
OCB
Medium
Helping a colleague with their work even though it is not part of your formal role is an example of:
View solution
Correct Option: B
Discretionary helping = the altruism dimension of OCB (Organ, 1988).
Q 06
Inequity Response
Medium
According to Adams, an under-rewarded employee is least likely to:
View solution
Correct Option: C
Under-rewarded employees typically reduce inputs, demand more outcomes, distort perceptions, change referent, or leave — they do not add unpaid work.
Q 07
Whistleblower
Medium
Cynthia Cooper is famous for whistleblowing in:
View solution
Correct Option: B
Cynthia Cooper, an internal auditor at WorldCom, exposed a $3.8 billion fraud in 2002. Sherron Watkins was the Enron whistleblower.
Q 08
India Law
Medium
In India, the Whistleblowers Protection Act, 2014 primarily protects:
View solution
Correct Option: B
The 2014 Act covers public-sector employees disclosing corruption or wilful misuse of discretion. Private-sector cover rests on Companies Act §177(9) and SEBI LODR.
ImportantQuick recall
- Organisational justice = perception of fairness at work. Term coined by Greenberg (1987); root: Adams’s equity theory (1965).
- Inequity → six possible responses: change own inputs / outcomes; distort own / others’ perceptions; change referent; leave the field.
- Four dimensions of justice: Distributive (outcomes — Adams), Procedural (process — Thibaut & Walker, Leventhal), Interpersonal (dignity — Bies & Moag), Informational (explanations — Greenberg).
- Leventhal’s six procedural rules: Consistency · Bias suppression · Accuracy · Correctability · Representativeness · Ethicality.
- Justice predicts OCB (Organ’s five: altruism, conscientiousness, sportsmanship, courtesy, civic virtue) and reduces counterproductive behaviours.
- Whistleblowing: internal vs external. Famous cases — Watergate (Felt), Enron (Watkins), WorldCom (Cooper), Satyam, Volkswagen.
- India: Companies Act §177(9) (vigil mechanism), SEBI LODR 2015, Whistleblowers Protection Act 2014 (public sector), SEBI Informant Mechanism (insider-trading).