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The effects of mandatory employment arbitration systems on applicants' attraction to organizations
Author(s) -
Mahony Douglas M.,
Klaas Brian S.,
Mcclendon John A.,
Varma Arup
Publication year - 2005
Publication title -
human resource management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.888
H-Index - 94
eISSN - 1099-050X
pISSN - 0090-4848
DOI - 10.1002/hrm.20084
Subject(s) - arbitration , attraction , business , organizational justice , economic justice , process (computing) , public relations , psychology , demographic economics , marketing , labour economics , social psychology , law , economics , organizational commitment , political science , philosophy , linguistics , computer science , operating system
This study draws on organizational justice theory to investigate the effects of mandatory employment arbitration on organizational attraction. Specific attention is given to the characteristics of employment arbitration procedures that moderate the adverse effects these programs have on applicants' intentions to continue with the recruitment process. A total of 389 professional and executive MBA students read simulated employment brochures. Making employment arbitration mandatory was found to have a significant negative main effect on applicant attraction. This negative effect was mitigated when procedures afforded employees more due process considerations and when employees were given a just‐cause protection in return for giving up their right to sue. Finally, this negative effect was greater among minorities than nonminorities. © 2005 Wiley Periodicals, Inc.