ABSTRACT
Employee perception of fairness in compensation methods and systems is important to achieve the purposes of “compensation management,” which is a basic function of human resource management. As such, perception of organizational justice correlated with vari – ables known to effectively impact job satisfaction, motivation, intention to leave, and burnout is determined on a large scale by the application of compensation and salaries. Here, it is crucial to establish and operate systems in which pay is fairly determined according to jobs performed, job performance, and market conditions. However, the literature and practice do not adequately focus on compensation. Consequently, there is uncertainty regarding how equitable compensation aligned to business ethics should be systematically conducted in Turkey. Therefore, in this study, employees’ perceptions of a “fair” and “ethical” compen – sation management system was systematically discussed according to types of pay equity and organizational justice perception. In addition, this study is a systematic review that can contribute to the development of a scale to determine employees’ perception of ethics re – garding their organizations’ compensation management systems. Based on an analysis of the related literature, the results of this study indicated that organizations should establish fair purposes and policies in compliance with the law; take advantage of scientific and objec – tive methods such as job evaluation, market research, and performance-based pay; manage communication with employees regarding their demands and objections; and ensure em – ployees’ participation in decision making to ensure fair and ethical compensation.