Organizational Justice, Employee Turnover, and Trust in the Workplace: A Study in South Asian Telecommunication Companies

Abstract

Most managers develop their strategy around tangible supports (salary and fringe benefits) and human resource practices to manage turnover and other behaviors among employees. This study posits that the perception of organizational justice is also an important factor in determining employees' behavior in the workplace and can be used as an effective strategy to manage people. In examining the impact of distributive and procedural justice on employees' trust in their organizations (organizational trust) and on employee turnover, it suggests that employees are very sensitive to justice-related issues in their organizations and that organizational trust mediates between organizational justice and employee turnover. Data from 597 employees working in five private-sector telecommunication companies in South Asia suggest that both distributive and procedural justice increase employees' trust in their organization and decrease employee turnover. The data also reveal that employees are more concerned about procedural justice than distributive justice. ©2014 Wiley Periodicals, Inc.