What does distributive fairness generally refer to?

Distributive fairness generally refers to the perceived fairness of outcomes received. This concept is grounded in equity theory, which emphasizes the importance of individuals feeling that the benefits and rewards they receive from their contributions are equitable relative to others in similar situations. When individuals perceive that the outcomes, such as pay, promotions, and recognition, are fair and justified based on their performance and effort, it fosters a sense of trust and satisfaction within the organization.

Understanding distributive fairness is crucial for human capital management because it influences employee motivation, engagement, and overall morale. When employees believe they are fairly compensated for their work, they are more likely to remain committed to the organization and perform at higher levels, contributing positively to the organizational culture.