CHAPTER ONE
1.0 INTRODUCTION
The existence of organizational justice is a critical issue for the success of an organization. It has a direct link with the performance of its employees. Organizational justice has been defined as “the fairness of work place” Wright [1998]. Similarly Organizational justice means “the ways in which employees determine if they have been fairly treated in their jobs and the ways in which these determinants influence other job related issues Moorman [2010].
Organizational Justice has been seen as an important variable that plays major role in improving the performance of employees of an organization. Because different studies have shown, if employees are not treated fairly it results in reduced output from the employees as a natural response to the unfair treatment. Organizational justice has been viewed to enhance overall commitment too Johnson et al [2002].
The concept of justice is seen to be associated with the concept of equity theory, based on which this study has been developed. Organizational justice has been further divided into three main dimensions namely distributive justice, procedural justice and interactional justice. Distributive justice means the perceived fairness of results and outcomes along with how the decisions are undertaken at the end of appraisal process Cropanzano R [1998]. Secondly, procedural justice, that means fairness of procedures with respect to the processes and methods adopted to reach to the point of how these results have been achieved as well as what ways and procedures have been adopted to reach the final decisions. Similarly, procedural justice describes the fairness of procedures used in the allocation process. Procedural justice also reflects the degree of fairness in the procedures adopted to determine how individuals are treated and how respective benefits are given. Thirdly, interactional justice relates with how people interact and communicate with one another Greenberg [1990]. Interactional justice also refers to the quality and fairness of inter personal treatment during enactment of Organizational decisions and procedures. It also highlights the human aspects of interaction expressed in respect, politeness, honesty, dignity. Justice plays an exceptional role as a binding force in reducing opportunism and enhancing relationships between individuals.
When we discuss the corporate performance it has been mainly divided into in-role performance and extra-role performance. In-role performance means how an employee performs his/her specific job requirements/assignments as per their official contract Anderson SE [2011]. On the other hand, extra-role performance means the performance outside the basic job requirements and needs an individual’s will and wish to perform George [1992]. The link between performance and justice has a long history and both have been found to be closely related. Different researchers have found that all the three dimensions of organizational justice are extremely important in getting an improved performance from the employees of an organization. These three dimensions of organizational justice have got a multiplicative influence on employee’s performance.
A variety of literature is available on the subject of organizational justice and corporate performance in private sector organizations. However, public sector has got relatively lesser attention particularly in Nigeria a lot is still required to be done in this regard. An effort is being made through this study to analyze the impact of Procedural Justice and corporate performance. It is hoped that based on the findings of this study recommendations will be given for individuals, organizations to improve upon their weak areas and open doors for future research.
1.1 Background to the Study
The subject of research has come under discussion from different perspectives by a number of researchers in various sectors like manufacturing, banking, and educational sector etc. However, a limited research exists on public sector organizations. Particularly, in a developing country like Nigeria, where a large number of public sector organizations are playing a pivotal role in development of the country in different capacities, organizational justice being the corner stone of any organization’s success needs further insights. This will help us to reach to viable conclusions for future guidance. The existence of organizational justice or otherwise has its bearing on the performance of its employees, because the individual performance of each and every member of the organization leads towards overall performance of the organization to achieve its goals. Keeping this background in view this study was planned to have further insights with respect to the Procedural Justice and corporate performance in Nigeria so as to reach to viable conclusions for future guidance.
1.2 Problem statement
The research was conducted keeping in view the public sector organization’s need in Nigeria, in addition to the overall achievement of organizational goals the performance of every employee counts irrespective of their type of job and individual designations. Organizations need to develop such a system where conclusive environment is provided to its employees within the existing resources to get better employee performance. Organizational justice means that distribution of pay, rewards and other benefits needs to be fair along with other resources to ensure distributive justice. Similarly, the procedures used in the organization are such that they are applied across the organization equally without any biasness among the employees. The interactions between individuals also need to be professionally conducted rather than personal likings or disliking. However, having said is easy then it is being done in the organization fairly across the board. This aspect of justice needs further research to explore its various affects.
1.3 Research objective
The main objective of this study is on Procedural Justice and corporate performance
The outcomes of the study are aimed at achieving two specific objectives:
- To determine the impact of organizational justice on employee performance in Public Sector Organizations of Nigerian
- To determine the impact of distributive, procedural and interactional justice on employee performance in Public Sector Organizations of Pakistan.
1.4 Research Questions
This research aims at finding the solutions of two research questions which are representing the central theme of research.
Q1. Does organizational justice have positive and significant impact on the performance of employees?
Q2. Does distributive, procedural and interactional justice have positive and significant impact on the performance of employees?
1.5 Significance of research
The study is expected to have a great deal of significance for organizations, individual employees, and managerial staff and research scholars. Organizations can look into the weak areas of their HR departments based on research findings. They can improve the distribution of various resources, pays, rewards and other related benefits along with improving their procedures to enhance their employee performance. Individual employee can also get guidance to enhance their performance towards achievement of organizational goals. Managerial staff can get guidance to further improve their ways of dealing with employees fairly. Research scholars can be facilitated to carryout research on related aspects of the study in future.
1.6 Hypothesis of the Study
Hi : Organizational justice does not have any significant impact on the performance of employees
Hi. Distributive, procedural and interactional justice does not have any significant impact on the performance of employees