Which term defines the difference between an employee's perceived rewards and the actual rewards received within the workplace?

Prepare for the NAB Domain 2 Operations Exam. Challenge yourself with multiple choice questions, detailed explanations, and study tips. Ace your test efficiently!

The correct answer is distributive justice. This concept refers to the perceived fairness of the distribution of rewards and benefits in an organization. It specifically addresses the gaps between what an employee believes they deserve based on their contributions, efforts, and performance, versus what they actually receive in terms of pay, benefits, recognition, and other rewards. When employees perceive a significant disparity, it can lead to dissatisfaction and reduced motivation, as they feel that their contributions are not being adequately recognized or compensated.

In contrast, procedural justice relates to the processes and methods used to decide how rewards are distributed. It focuses more on whether the procedures that lead to allocation decisions are fair and transparent. Organizational justice encompasses both distributive and procedural justice, looking at the overall perception of fairness in an organization, which includes outcomes and processes. Equity is a broader concept that refers to fairness in terms of contributions and rewards but can extend beyond just the organizational context. Therefore, distributive justice is the most precise term to describe the situation where there is a discrepancy between perceived and actual rewards.

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