THE INTERVENING EFFECTS OF PARTICIPATION ON THE RELATIONSHIP BETWEEN PROCEDURAL JUSTICE AND MANAGERIAL PERFORMANCE

Abstract

Prior studies have suggested that the subordinates’ perception of fairness in their organizations’ procedures is related to improvements in the subordinates’ performance. However, the positive relationship between perception of justice and performance may not be a direct one, but is indirect via the intervening variable of participation. It is likely that the importance of maintaining procedural fairness in the organization will lead senior managers (superiors) to select procedures that allow their subordinates more participation privileges in the organization’s affairs because high participative procedures are perceived to be fair. This increase in participation, in turn, is likely to improve the subordinates’ performance. The results, based on a path analytical model and a sample of 83 senior managers, indicate that procedural justice has an indirect effect on performance via participation. On the basis of these results, it is possible to conclude that the importance of procedural fairness in the organization leads to the selection of procedures with high subordinates’ participation, which, in turn, leads to high managerial performance.