The Role of Gain Sharing in the Relationship between Organizational Fairness and Employees Behaviour in Management Control

The Role of Gain Sharing in the Relationship between Organizational Fairness and

Employees Behaviour in Management Control

Harryanto, Faculty of Economics, Hasanuddin University

abstract

This study examines the role of organisational fairness, trust in the specific management control system is called gain sharing. In accordance with the theory proposed, involving employee’s perceptions of procedural fairness and distributive fairness of gain sharing plan affects the confidence of the employees to the manager and in turn affect intention to leave. The positive perception tends to increase confidence, which in turn has positive consequences for an organization such as low labor turnover. Investigate this issue done through a survey of the labor of a large manufacturing company. Results of SEM shows that how employee perceptions relating to the attitudes and behavior of employees, and its association with the success or failure of management control system. This study found that there are significant relationship between perception of procedural fairness, distributional fairness to the trust to managers, and there is a direct relationship as weel to the perception of change the job or intention to leave.

Gain Sharing, Procedural Fairness, Distributional Fairness, Manager Trust and Intention to leave.

Unpublished, Preliminary work, do not quote