Coping with Job Insecurity: The Role of Procedural Justice, Ethical Leadership and Power Distance Orientation

Loi, Raymond; Lam, L.; Chan, KH

doi:10.1007/s10551-011-1095-3

Cited by 172 publications

(143 citation statements)

References 61 publications

(80 reference statements)

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“…There is broad evidence of how procedural justice can increase the performance of the individual by an increase in organizational identification, employee engagement (He et al, 2014) but also by a decrease of the feeling of job insecurity (Loi et al, 2012).…”

Section: Procedural Justice and Strategy Creationmentioning

confidence: 99%

Fairness in Strategy: A Fair Process Evaluation of Strategy Schools

2016

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The 'strategy creation' process -the process of formulating and implementing strategy -has been under critical study for decades for not delivering the desired results. The discussion on how a strategy process should be run has resulted in a number of 'strategy schools'.Procedural justice theory is relevant to this discussion. It states that when people impacted by a process consider the process as 'fair' they demonstrate a higher level of trust and commitment, and performance increases.This article evaluates the extent to which traditional 'strategy schools' comply with the tenets of procedural justice theory and highlight the non-compliance with these tenets for each of these schools. We then propose a new strategy process model which has a greater fair process dimension than any of the more traditional 'strategy schools' and as such offers the potential to bring greater effectiveness to the strategy process."These men ask for just the same thing, fairness, and fairness only. This, so far as in my power, they, and all others, shall AbstractThe 'strategy creation' process -the process of formulating and implementing strategy -has been under critical study for decades for not delivering the desired results. The discussion on how a strategy process should be run has resulted in a number of 'strategy schools'.Procedural justice theory is relevant to this discussion. It states that when people impacted by a process consider the process as 'fair' they demonstrate a higher level of trust and commitment, and performance increases.This article evaluates the extent to which traditional 'strategy schools' comply with the tenets of procedural justice theory and highlight the noncompliance with these tenets for each of these schools. We then propose a new strategy process model which has a greater fair process dimension than any of the more traditional 'strategy schools' and as such offers the potential to bring greater effectiveness to the strategy process. IntroductionIn most large companies, senior management invests an important amount of energy and time in formulating and implementing a strategy.This typically consists of a vision for the future, a path to realize that vision, as well as company priorities and an associated competitive posture.The strategy process has been under discussion for (at least) the last three decades, both academic and corporate worlds presenting many variants on how a strategic process ought to be effectively run. The importance of the question was recognized, but no satisfactory conclusion to this debate has been presented. The discussion applies both to the efficiency of the strategy process -too time consuming and mobilizing too many resources and parties -and the effectiveness of it -not leading to the 'right' outcome.This discussion has resulted in a number of 'strategy schools' expressing different views on the 'ideal' strategy process. An underlying premise of all these schools is that the process largely determines the outcome, including the performance impact on the company.The...

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Section: Procedural Justice and Strategy Creationmentioning

confidence: 99%

Fairness in Strategy: A Fair Process Evaluation of Strategy Schools

2016

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“…Sehingga dapat disimpulkan bahwa keadilan prosedural merupakan konsep keadilan yang berfokus pada metode yang digunakan untuk menentukan imbalan yang diterima (Noe et al, 2011;Loi, Lam, & Chan, 2012).…”

Section: Keadilan Organisasionalunclassified

Pengaruh keadilan organisasional pada motivasi karyawan dan komitmen organisasional

Wiwiek

Sondakh

2015

jsb

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A number of previous studies conducted have shown the influence of employee motivation and company performance. According to the theories of social comparison, motivation is influences employee perceptions of how fairly they are treated. This research study will focus on a traditional family owned company in Indonesia, where the human resource activities that occur in the company are still based on the principle of kinship. Based on the results of research conducted at UD. X, it can be concluded that Distributive and Interactional Justice has a positive and significant impact on employee motivation, while only Distributive Justice has a positive and significant effect on organizational commitment. Employee Motivation has proven to positively and significantly affect Organizational Commitment. The interesting issues will be further discussed. AbstrakSejumlah penelitian yang pernah dilakukan sebelumnya telah membuktikan pengaruh dari motivasi kerja karyawan terhadap kinerja perusahaan. Menurut teori-teori perbandingan sosial, motivasi sangat dipengaruhi persepsi karyawan terhadap seberapa adil mereka diperlakukan. Penelitian ini mengambil obyek salah satu perusahaan keluarga tradisional di Indonesia, dimana kegiatan sumber daya manusia yang terjadi di dalam perusahaan masih berlandaskan asas kekeluargaan. Berdasarkan hasil penelitian yang dilakukan di UD. X, maka dapat diambil simpulan bahwa Keadilan Distributif dan Interaksional berpengaruh positif dan signifikan terhadap Motivasi Karyawan, sementara hanya Keadilan Distributif yang berpengaruh positif dan signifikan terhadap komitmen organisasional. Motivasi Karyawan terbukti mampu secara positif dan signifikan mempengaruhi Komitmen Organisasional. Isu-isu menarik lainnya juga akan didiskusikan lebih lanjut.

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“…In this study, we examined the efficacy of procedural fairness and success rate to alter allocation decisions. We selected the variables described below for their theoretical importance and their common use in practice and research (Nahartyo 2013;Loi et al 2012;Lam 2011;Fudge and Schlacter 1999). For example, Nahartyo (2013) discusses two components of procedural justice theory: self-interest theory and group value model.…”

Section: Settingmentioning

confidence: 99%

Keeping Self-Interest under Control: Effects of Procedural Fairness and Project Success Rate in a Cost-Reduction Context

Nahartyo

Utami

2014

TJAR

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In this study, we investigated the effects of procedural fairness (fair and no fair) and success rate on self-interest behavior. We compared a fair procedure condition that provides detail information regarding colleagues' cost structure and their willingness to sacrifice with an unfair condition without such information. Participants were assigned into two success rate groups: low and high. We expected that individuals who encountered a higher success rate condition were inclined toward a self-interest choice. Ultimately, we hypothesized that procedural fairness and success rate have an interaction effect on self-interest behavior. We conducted a controlled laboratory experiment to investigate individual decision process in a standard costing setting. The participants were 136 undergraduate business students enrolled in management accounting classes at three large private universities that acted to be the managers in a production department. They completed an experimental task on computer. The result of our experiment indicated a mitigating effect of procedural fairness on the individuals' self-interest behavior once the individuals realized the pressure of cost reduction process. The findings allow concluding that both self-interest and social preferences are guiding motivational factors of individual behavior. The findings indicated that people are willing to pursue organizational goals on the expense of their personal benefits. The results also showed the process of encouraging employees to undertake projects that decrease their current benefit but potentially have future organizational payoff. However, we did not find the interaction effect between procedural fairness and success rate. JEL Classificatoin: M41

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Coping with Job Insecurity: The Role of Procedural Justice, Ethical Leadership and Power Distance Orientation

Cited by 172 publications

References 61 publications

Fairness in Strategy: A Fair Process Evaluation of Strategy Schools

Fairness in Strategy: A Fair Process Evaluation of Strategy Schools

Pengaruh keadilan organisasional pada motivasi karyawan dan komitmen organisasional

Keeping Self-Interest under Control: Effects of Procedural Fairness and Project Success Rate in a Cost-Reduction Context

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