Impact of employee perceptions of mistreatment on organizational performance in the hotel industry

Abstract

Purpose This paper aims to investigate the impact of injustice, discrimination and incivility on organizational performance in the hotel industry. In addition to this, the study also investigates the mediating effects of discrimination and incivility between distributive injustice, procedural injustice and organizational performance. Design/methodology/approach A survey was conducted to collect the data from hotel industry employees on a structured questionnaire by using convenience sampling approach. PLS-SEM was used to analyze the useable data of 285 respondents. In addition to this, to evaluate the predictive performance of exogenous constructs newly suggested hold out sample approach in PLS-SEM was also considered. Findings Results indicate that incivility and procedural injustice has a negative and significant effect on organizational performance, while the impact of distributive injustice and discrimination on organizational performance was insignificant. Further, incivility was found to be a significant mediator, while mediation of discrimination was not supported between distributive injustice, procedural injustice and organizational performance. Practical implications Findings are important for hotel managers to adjust their strategies to improve organizational performance. Originality/value This study contributes in existing literature by concentrating on predictors that undermine the organizational performance. To the best of the authors’ knowledge, this is one of the early studies to contribute in literature by investigating the impact of injustice perceptions on employee perceptions specifically perceived incivility and perceived discrimination on organizational performance. Further, it also investigated the mediating impact of perceived incivility and perceived discrimination between injustice perceptions and organizational performance. Such considerations have implications for researchers, students and practitioners. For researchers, this study helps to ponder on an alternative approach by considering those factors which may undermine organizational performance, instead of focusing only on those factors which enhance organizational performance. For research students, such contribution will bring a new avenue to consider further research. Managers will find help to control such factors which minimize organizational performance.