Academic journal article Researchers World

Consequences of Perceived Organizational Justice: An Empirical Study of White-Collar Employees

Academic journal article Researchers World

Consequences of Perceived Organizational Justice: An Empirical Study of White-Collar Employees

Article excerpt

ABSTRACT

Employees' perception of fairness and organizational justice on pay practices are important antecedents of pay satisfaction, job satisfaction, commitment and turnover intention. Previous research shows the importance of different dimensions of organizational justice and its relationship with pay satisfaction, job satisfaction, commitment and turnover intention. The present empirical study is focused on perception on fairness of pay system as a whole in terms of distributive justice, procedural justice and interactional justice and its impact on various outcomes (pay satisfaction, job satisfaction, commitment and turnover intention). For studying the relationship we have collected data from 70 white collar employees. The result shows that interactional justice is a stronger predictor of turnover intention as well as job satisfaction than procedural and distributive justice. The results also illustrated distributive justice is a stronger determinant of pay satisfaction as well as organizational commitment than interactional justice. In the regression analysis we found the relationship between procedural justice and outcomes are not significant.

Keywords: Organizational justice, Distributive Justice, Procedural Justice, Interactional Justice, Pay satisfaction, Job satisfaction, Organizational commitment, Turnover Intention.

INTRODUCTION:

Organizations are more concerned with employee's perception on organizational justice (Greenberg, 1987) because this has an impact on employee attitudes and behaviours. Research shows that organizational fairness has positive and negative impact on various outcomes. Previous research on organizational justice reveal that the dimensions of organizational justice are positively correlated to pay satisfaction (Folger & Konovsky, 1989; McFarlin and Sweeney, 1992; Trembly et. al., 2000; Xiaoyi Wu and Chunben Wang ,2008), job satisfaction (McFarlin and Sweeney,1992; Trembly et. al.,2001, Al-Zu'bi, Hasan Ali.,2010) commitment (Colquitt et al., 2001; Kumar et al.,2009) and negatively related to turnover intention (Kim and Leung. 2007; Haar et al., 2009). According to an employee, an organization is fair based on his perception of how well the organization treats its employees. If the employees feel the perceived justice is fair: the pay satisfaction, job satisfaction and commitment will be higher and vice versa. Similarly, lack of perceived justice increase the turnover intention.

Organizational justice is defined as the "perceptions of fairness and their impact on behavior in organization" (Beugré1998). Researchers studied fairness as three classes of organizational justice: a) procedural justice (Thibaut and Walker (1975); b) interactional justice (Bies and Moag, 1986); and c) distributive justice (Adam, 1965). Procedural justice is the fairness on the compensation processes / procedure or it is the fairness of the means used for making decisions about the outcomes /amounts (Folger & Konvsky, 1989). Interactional justice (Bies and Moag, 1986) is the fairness of superiors in terms of pay, communicating the right information and giving necessary guidelines to the subordinates in order to achieve the goal. Therefore researchers considered it as the social side of fairness (Greenberg, 1994). Interactional Justice focuses on how superiors interact and communicate the right information about the procedures with the employees. It shows the fairness in superiorsubordinate relationship through sharing the right information and treating them well. It includes two aspects of justice, therefore earlier researchers included two specific types of interpersonal treatment (e.g., Greenberg, 1990a); the first one is interpersonal justice and the second is informational justice. Interpersonal Justice is the degree to which people are treated with politeness, respect and dignity (Greenberg, 1990). Informational justice is the degree of fairness on conveying information relating to pay and its distribution. …

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