Organizational justice and employees’ performance: A study of an emerging economy

Abstract

BACKGROUND: Employee’s trust influences the organizational performance and leads to the accomplishment of organizational goals and objectives within a defined timeframe. Organizational Justice defines how equitably the employees of an organization are treated by their management considering both structural and cultural parameters. Trust is a manifestation of belief the employees have developed in their management in return. Many researchers came up with a verdict in favor of trust within any organization to develop good relationships between employees and top management. OBJECTIVE: The aim of this research is to determine the mediating role of trust between organizational justice and employee performance. METHODS: Convenient random sampling has been used to gather data from 433 employees working in different departments of the big five commercial banks in Pakistan; Baron and Kenny’s test was used to determine the mediating effect of trust. RESULTS: The findings of the research reflected that organizational justice significantly influences the performance of the organization. It has also been determined that employees’ trust fully mediates the impact of organizational justice on employees’ performance. CONCLUSIONS: Managers need to pay particular attention to justice as an important motivating factor for employees in order to improve organizational productivity.