Academic journal article Political Economy Journal of India

Organizational Justice and Performance Effectiveness: An Empirical Study in Insurance Company

Academic journal article Political Economy Journal of India

Organizational Justice and Performance Effectiveness: An Empirical Study in Insurance Company

Article excerpt


Justice is one of the goals which is considered by human beings in ethical, political and social dimensions over the years. Justice is among the most important conceptions which is explained in political and social subjects. According to Plato, social organization which is civilization symbol will not exist without justice. Justice is the center of attention of all humanistic affairs, because people are sensitive to how it is behaved towards justice, deeply. In management, observing and making justice is one of the most important job of every manager and every human in each condition. When justice exists, all the works are done correctly, but employee have to get their rights illegally if the justice does not exist. In fact, organizational justice is a kind of fulfillment in all activities, behaviors and tendencies of organizational individuals. Organizational justice is a basis for strategic thinking and value management and is also basis of all organizational values and principles.

Organizational justice was developed by west scholars as one of the social justice dimensions in 1970s and now is one of the new subjects related to organizational studies. Abraham Mazlo is one of the most outstanding psychologists in the field of motivation, who set a sequence of human needs. Though, in his sequence justice is not important, he was aware of its importance and was informed of injustice consequences. According to Tasdan, organizational justice is related to staff perceptions of work fair. In fact, he uses this phrase to explain and to analyze the role of fair at work place. Although there are various justice typologies in the literature, a theoretical framework to include all types of justice has not yet been suggested. In this study, organizational justice is examined under the following headings: distributive justice, procedural justice and interactional justice.

Distributive Justice

Distributive justice means the fair distribution of organizational resources. By the term "Distributive justice" means individual perceptions about payment, promotion and similar results. According to Homans (1961), distributive justice is related specifically to the results of decisions on distribution in an organization. Distributive justice are primarily related to structural determinants and structural determinants are rules and environmental contexts in the decision making process. Distributive justice is related to very specific cases, although it is connected to resource allocation and their results. Distributive justice is related to the perception held by an employee after comparing his/her results with those of others coworkers. Organ (1988) stated that "distributive justice is arguments on status, seniority, production, effort, needs and determination of payment". In his explanation, he suggested three rules of distribution. These rules are justice, equity and needs which can also be seen as dimensions of distributive justice.

Procedural Justice

Procedural justice is the perception of justice of a employees in the decision-making process. The concept of procedural justice hinges on an individual's assessment about rightness or wrongness of procedures and methods in decision making. Procedural justice is the perception of fairness regarding rules and regulations applied in the process of rewarding or punishing any employee. Employees who have a sense of fairness regarding the method tend to perceive distribution of organization's rewards and punishments as fair. Procedural justice is related to fairness in procedures applied in organizations and organizational procedures in decision-making. These procedures and rules regulation generally include promotions; performance assessment, rewards and sharing other organizational opportunities. The criteria used for making decisions regarding organizational practices are related to this type of justice.

Interactional Justice

Interactional justice is an important consideration in the workplace because of the effects associated with seemingly fair or unfair treatment. …

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