Strategic Management (Jan 2019)
The influence of organizational justice on corporate performances
Abstract
Professional and committed employees have always been a desirable resource in the portfolio of human resources of each company because their expertise and engagement can significantly affect the overall performance of businesses. The readiness to put the potential that have in the function of the company is, however, under the influence of a variety of factors, starting from the design of the job, through the reward system, to the possibility of promotion. As one of the most important factors, which is not sufficiently addressed in domestic literature, is the perception of organizational fairness, as well. This category refers on the degree to which employees believe that the decisions made in the company are fair, the procedures that are applied are fair, and the treatment of the employees to whom the decisions are made for are fair. Numerous empirical researches have shown that when a higher level of organizational justice is perceived in the company, it has a positive impact on the manifestation of organizational citizenship behaviour, job satisfaction, commitment, etc. Since all these forms of employees' behaviour and attitudes are positively correlated with individual, and thus overall, organizational, performances, organizational justice could be seen as one of the factors that can influence the performance that the company as a whole. Bearing in mind the above, the subject of the paper is to examine whether organizational justice has a statistically significant impact on the performance of companies in Serbia, and to what extent some forms of organizational justice (distribution, procedural and interactive) affect them. The aim of the paper is to propose mechanisms and measures based on the results of the research to managers, whose implementation can contribute to the increase of organizational justice in those segments that are poorly assessed. The starting assumption of the paper is that organizational justice has a statistically significant impact on company performance. In order to verify the validity of this assumption, the methods of correlation and regression analysis will be used. The analysis will be based on the data obtained from the primary research carried out in the companies mostly in the South East of Serbia. The theoretical implications of the paper are reflected in filling in the gaps in domestic literature regarding organizational justice and its possible implications, while empirical implications are reflected in the ability to increase the level of justices in the companies in Serbia by applying the proposed mechanisms and measures and thus positively influence attitudes, behaviour and performances of employees.
