Perceived Organizational Justice and Employee Performance: Trust as A Mediator

Abstract

This research examines the extent to which perceived organizational justice influences employee performance. The relationship between perceived organizational justice and employee performance is mediated primarily by trust. Empirical evidence from this study provides insights into the findings of Gerstner, Whetstone, and Zhang (1995) that illustrate organizational justice as an important factor in both organizations' profitability and employees' well-being. The study is conducted by collecting responses from 165 employees working in 5 leading IT firms in Pune City. Perceived organizational justice, employee performance, and trust are measured using Likert-based Behavior-Related Measurement System (BRMS) and Interpersonal trust scale, respectively. It is found that those who work longer with the same organization show higher trust and are more likely to perceive it as just, thus being able to perform better. Age and perceived organizational justice are not significantly correlated according to the findings. This research illustrates the importance of organizations' well-being, as well as employees' well-being, to the success of an organization. Moreover, this study shows that individuals with low levels of work-related trust are less satisfied in their job and are not productive at work compared to those who have high levels of work-related trust.