Case Study

Fairness in Bonus Allocation

A manager is tasked with distributing a team bonus. Company policy suggests bonuses should be based on performance. The manager, however, decides to give equal shares of the bonus to their 10 closest friends in the 20-person department. By coincidence, these 10 friends were also the top 10 performers for the year. An employee who was not a friend of the manager but was also a top performer finds out how the decision was made and complains that the allocation was unfair. Based on the two primary grounds for judging fairness, explain the basis for the employee's complaint. In your explanation, identify which type of fairness was violated and why the manager might argue the outcome was nonetheless fair.

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Updated 2025-09-28

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