Organization structure and fairness perceptions: The moderating effects of organizational level

Abstract

This research explores the relationship between organizational structure and fairness perceptions. We hypothesized that several dimensions of organizational structure (centralization, formalization, size, and vertical complexity) would influence perceptions of distributive, procedural, and interactional fairness. Further, drawing on social exchange theory, we predict that organizational level will moderate the relationships between structure and fairness perceptions. In particular, we predicted that the effects of structure on justice perceptions would be stronger for individuals at lower organizational levels and weaker for those at higher levels. Results from a sample of 212 participants from 45 departments across 35 work organizations generally supported our predictions. Organizational structure—in particular centralization and formalization—exerted main effects on perceptions of distributive, procedural, and interactional justice. Organizational level was negatively related to both distributive and procedural justice. Finally, as hypothesized, organizational level moderated several of the relationships between structural dimensions and the three types of justice.