Abstract

In this study, categorizing noneconomic rewards to internal and external, the effects of internal and external noneconomic rewards on the satisfaction with inequitable pay allocation were examined. Following four hyphothesis were tested; i) Internal rewards will reduce dissatisfaction with disadvantageous inequity pay allocation, ii) Internal rewards will not reduce dissatisfaction with advantageous inequity pay allocation, iii) External rewards will reduce dissatisfaction with advantageous inequity pay allocation, and, iv) External rewards will not reduce dissatisfaction with disadvantageous inequity pay allocation Additionally, it was examined the effects of equality and strength of inequity on the satisfaction with pay allocation in the context of equity, by manipulating both ratio of input and outcome of self and other. Supporting all hyphothesis, the results showed the predicted two way interactions of equity condition with internal and external noneconomic rewards in the two experiments respectively, and partial analysis of data showed that the satisfaction with equal allocation is greater than that with unequal allocation. The implications of the results were discussed in the context of equity theory and interpersonal relation, and some further researches were recommended.