Risk averse people respond positively to being treated fairly and risk seeking people may react negatively
Being treated fairly reduces the perception of uncertainty
Moderating effect of risk aversion because the uncertainty reducing effect of procedural justice.
Risk aversion is a concept origin in the field of microeconomics and believes that the various outcomes of certain situations tend to be diverted. Risk aversion individuals respond positively to high levels of fairness which increases their performance and reduced counterproductive behaviors.
Procedural justice does not have always result in positive behavior or attributes. It does increase the effects for interdependent people that have a desire for cooperation and future interactions with justice personnel. But there is a no significant effect for people with low interdependent or self-construal behaviors or attributes. The reversal of the positive effects of procedural justice shows that if the group has high self-esteem there will be positive outcomes. Procedural justice helps to make changes to attitudes, behaviors and performance. The focus of procedural justices is on moral, relational and status concerns for the reversal of negative situations and makes self-evaluations for productive changes.
H1 Risk aversion will moderate the relationship between procedural justice and work-related outcomes.
H2 The experience of procedural justice will reduce the uncertainty perceived in the environment.
H3 The relationship between procedural justice and work-related outcomes will be mediated by perceptions of reduced uncertainty, and will be mediated by perceptions of reduced uncertainty, and an individual’s risk aversion will moderate this mediated relationship.
H1 proved that many of the respondents had a voice in their jobs, they were granted increases of pay and promotions which led to positive job satisfaction. The risk aversion was for sexual behaviors and if the respondents had sexual encounters with their co-workers. In these circumstances it would be reasonable for employees to avoid working or communicating with each other if they risk improper workplace conduct.
H2 The uncertainty of people in culturally diverse societies were undergoing a rapid change which reacted to procedural justice differently. For instance, perceptions of uncertainty related to pay, how to perform job tasks better, salary changes for the next evaluations, and unknown annual bonus. Certain job performance related issues would arise, and many employees would not know if there would be changes to job income, job tenure, procedural justice, perceived uncertainty and interactions.
The findings showed that fundamentally people have reactions to procedurally fair treatment. The risk seeking people respond negatively to fair treatment, fair treatment lowers perceptions of uncertainty and this effect leads to higher performance among risk averse people, which can eliminate the effects of procedural justice on performance among risk seeking people.
H3 explains the moderating effect of risk aversion because the uncertainty reducing effect of procedural justice. In modern work environments many of the individuals that work on projects have the ability to respond positively to high levels of fairness which increases their performance and reduce counter productive behaviors. Certain types of work achievements or praise will help human resource managers give their employees high levels of fairness which increases their work ethic to complete tasks efficiently.