Objective rewarding, managerial motivation and organizational commitment: The intervening role of justice

The behavioural accounting literature suggests that managerial motivation and commitment are affected by the way in which managerial performance is evaluated, but little is known about what aspects of rewarding system are crucial in evoking desired outcomes. In this chapter we explore whether managerial motivation and commitment depend on the level of objectivity of the rewarding system, and what variables mediate this relationship. We develop a causal model in which we set up hypotheses about the intervening role of managerial perceptions of justice. We test these hypotheses using survey data from a sample of 161 managers from 11 commercial banks. The chapter contributes to the literature by providing empirical evidence on the antecedents and consequences of justice in an applied setting, suggesting the important mediating role of justice in the relationship between rewarding systems and managerial motivation.