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Effects of perceived organizational justice on trust and commitment and an empirical study in service industry

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2016
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Abstract (EN)

In today's competitive business world, one of the most important things for the companies to be successful is efficiency. Reaching to high efficiency level depends on some behaviors and perceptions of the employees. Organizational behavior, which is a practice to understand individuals' and groups' behaviors and make predictions according to them, is one of the most used fundamental researches to solve organizations' problems today. Organizational justice, organizational trust and organizational commitment are some of the subjects of organizational behavior. Organizational trust is the trust of an individual for the organization to stand behind their words in a risky and uncertain situations. Because of it's effects on organizational commitment, intention to leave, performance and job satisfaction, organizational trust has an important role. There are three common components of organizational trust in literature: trust to manager, trust to company and trust to coworkers. Organizational commitment, which can be defined as organizational members' psychological attachment to the organization, is a popular subject because it gives information about employees' efficiency and their intention to leave. According to the results of many researches, high organizational commitment leads to high performance, job satisfaction and efficiency; low intention to leave and employee turnover rate. At the other hand, some studies show that organizational commitment affects intention to leave more than job satisfaction does. There are three components of organizational commitment in literature: affective commitment, continuance commitment and normative commitment. Justice is a very important subject of both society and organizations because of it's effects on relations between individuals. Organizational justice stems from Equity Theory of J.Adams. Organizational justice, which is about individual's perception of fairness of anything about the work and their behaviors according to these perceptions, has an important role in organizations. According to the results of many researches, poor perception of organizational justice leads to low job satisfaction, motivation and performance. There are three organizational justice dimensions in the literature: distributive justice, procedural justice and interactional justice. People want to stay at places and groups where they feel themselves safe. Consequently, they search about their company, manager and coworkers to find out if they can trust or not. According to the results of researches about organizational trust and organizational commitment, there is a significant positive relation between them. It can be said that organizational trust positively affects organizational commitment. Perception of organizational justice is one of the fundamental sources of organizational trust. When individuals perceive fairness in an organization, they feel trust. According to the results of researches about organizational justice and organizational trust, there is a significant positive relation between them. Most of the researches show that organizational justice positively affects organizational trust. Measuring individuals' organizational justice perceptions is important because of it's effects on their commitment. People want to stay at places where they perceive everything occurs in fair. According to the results of researches about organizational justice and organizational commitment, there is a significant positive relation between them, organizational justice positively affects organizational commitment. Besides the literature research about organizational justice, organizational trust and organizational commitment factors and their relations with each other, this research also contains an empirical study. A survey was conducted in Istanbul to 341 employees of a company, which is a market leader and has 658 employees. According to this, %51,82 of the population has been reached. The survey contains 4 demographic questions and 36 questions about the main subject (12 questions for each subject), which were adapted from the literature. Questions about organizational justice were adapted from Organizational Justice Questionnaire which was created by Neihoff and Moorman in 1993; questions about organizational trust were adapted from a research that was made by Islamoglu and others in 2007; questions about organizational commitment were adapted from Organizational Commitment Questionnaire which was created by Meyer and Allen in 1984. All of the questions about organizational behaviors have five point likert scale answers. IBM SPSS Statistics 20 software is used for analyzing the survey datas and scores that were calculated for every variable. After applying reliability analysis, it was seen that every factor has a high Cronbach's alpha value (higher than 0,60), which shows that it is convenient to make dimension reduction and form factors. Then confirmatory factor analysis was applied to the datas and it was seen that the same factors with the literature were obtained. According to the stepwise method of linear regression, 20 of 30 hypothesis, which were formed at the beginning of the research, were proved. According to results of regression analysis, it was seen that affective commitment, which is a factor of organizational commitment, is positively affected by procedural justice, distributive justice, trust to manager and trust to company. At the other hand, it was seen that continuance commitment, which is another factor of organizational commitment, is negatively affected by procedural justice, distributive justice, trust to supervisor and trust to coworkers. Lastly it was found that normative commitment, which is the third factor of organizational commitment, is positively affected by all of the organizational justice factors, trust to company and trust to supervisor. Results about organizational trust shows that trust to company and supervisor are positively affected by all of the organizational justice factors; trust to coworkers is positively affected by procedural justice and distributive justice. According to the relations between variable scores, it was seen that organizational commitment is positively affected by both organizational justice and organizational trust. At the other hand, organizational trust is positively affected by organizational justice. These results prove the main three hypothesis of this study. Lastly, one-way ANOVA (analysis of variance) was made to compare the means of every demographic group's results. According to the results, there is no difference between the results of women and men. At the other hand, it can be said that there is a significant difference between 36+, 24-29 and 30-35 aged employees' answers about organizational commitment. This difference's reason is 36+ aged employees having a higher organizational commitment. Results of one-way ANOVA about educational status show that there are some significant differences. Master's degree graduates have more organizational commitment than the employees who have educational status of high school and pre-high school. Bachelor's degree graduates have less organizational trust than the employees who have educational status of high school and pre-high school. Employees, who have educational status of pre-high school, high school and associate degree have more organizational trust perception than master's degree and Phd graduates. Results of one-way ANOVA about experience in this company show that there are some significant differences as well. According to organizational commitment scores, employees with less than one year experience have less organizational commitment than employees with more than 1 year of experience. Results about organizational trust show that employees with 1-2 years of experience in that company have more organizational trust than employees with less than one year of experience. Lastly, according to the scores of perceived organizational justice, employees with 6-12 months of experience perceive organizational trust less than employees with 1-2 years of experience. To sum up, it can be said that most of the results of this study are same with the studies in the literature.

Author

Yumi Yusuf İbrahimzade

How to Cite

Yumi Yusuf İbrahimzade (Master Thesis). Effects of perceived organizational justice on trust and commitment and an empirical study in service industry, 2016, İstanbul Technical University.

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