Procedural Justice and Work Outcomes in a Unionized Setting: The Mediating Role of Leader‐Member Exchange

Abstract

This study extends previous literature on social exchange by investigating the mediating effects of leader‐member exchange on the relationship between procedural justice, job attitudes and turnover in a unionized setting. Past research has shown that procedural justice and subordinate/supervisor exchanges are related to job attitudes and turnover. These relationships have normally been studied in non‐union settings, in which union contextual variables are not considered. The current study uses hierarchical linear modeling to test theoretical models of these relationships in a unionized setting, where procedures and managerial treatment are more clearly defined and regulated. Results reveal that both procedural justice and leader‐member exchange are related to organizational commitment and job satisfaction and leader‐member exchange is related to actual turnover. Leadermember exchange partially mediates the relationship between procedural justice and these job attitudes after accounting for the effects of union commitment (at the individual level) and union‐management relations (at the store level). From a managerial perspective, our results emphasize the importance of proper selection, training and performance appraisal of supervisors, with treatment and support of employees as a main focus.