A critical analysis of organisational justice in the South African financial service industry

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Abstract

Organisational justice has captured the interest of scholars in recent years since it is associated with the perceptions of an individual to the presence of fairness in an organisation. The primary objective of this study is to critically analyse organisational justice within the South African financial services industry. A quantitative research design was employed. Non-probability sampling was used and 436 usable questionnaires were returned. The empirical results reveal that trustworthiness of management, intrinsic and extrinsic rewards, organisational transparency and organisational climate have positive influence on procedural-interactional justice and organisational distributive justice, while employee engagement is founded to have no significant influence on both procedural-interactional justice and organisational distributive justice. Furthermore, both procedural-interactional justice and distributive justice were found to have a positive influence on organisational citizenship behaviour and reputable employee retention in the financial services industry.

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On the dimensionality of organizational justice: a construct validation of a measure.

J. Colquitt (2001)

This study explores the dimensionality of organizational justice and provides evidence of construct validity for a new justice measure. Items for this measure were generated by strictly following the seminal works in the justice literature. The measure was then validated in 2 separate studies. Study 1 occurred in a university setting, and Study 2 occurred in a field setting using employees in an automobile parts manufacturing company. Confirmatory factor analyses supported a 4-factor structure to the measure, with distributive, procedural, interpersonal, and informational justice as distinct dimensions. This solution fit the data significantly better than a 2- or 3-factor solution using larger interactional or procedural dimensions. Structural equation modeling also demonstrated predictive validity for the justice dimensions on important outcomes, including leader evaluation, rule compliance, commitment, and helping behavior.