Organization justice plays a very important role in employee motivation, loyalty, and well-being (Mc Shane et al, 2013). To minimize the feeling of injustice, corporate leaders have to understand well of the concepts, theory and forms of organization justice (Mc Shane et al, 2013).
There are three different but overlapping forms of organization justice, which are: Procedural Organizational Justice, Interactional Organizational Justice and Distributive Organizational Justice ( Elovainio et al, 2002).
2.1.1 Procedural organizational justice:
According to Oxford Dictionary, procedure refers to 'an established or official way of doing something'. Procedural justice is the idea of fairness in the processes of resolving disputes and allocating resources (Mehta, 2009). It is where "You have to do the right thing in the right way". Procedures are important to prevent misuse of power and . It “must be seen to be done” (Karris, n.d). It establishes certain principles specifying and governing the roles of participants within the decision-making processes (Russell, et al).
It emphasizes the fairness and the transparency of the processes by which decisions are made, and may be difference with distributive justice (fairness in the distribution of rights or resources), and retributive justice (fairness in the rectification of wrongs) (Mehta, 2009). Hearing all parties before making any decision is one of the step which would be considered well so that a process may then be characterized as procedurally fair. Yet if the requirements of distributive or corrective justice are not met, some theories state that fair procedure still leads to equitable outcomes (Mc Shane et al, 2013).
In three papers, Leventhal and his colleagues (Leventhal, 1976, 1980; Leventhal, Karuza, & Fry, 1980) recognized some core attributes that build up a just process. It is practical constantly to all, free of bias, specific, representative of relevant stakeholders, correctable and consistent with ethical norms.
It is valued by individuals for two main reasons (Lind & Tyler, 1988). First, procedural justice offers promise that an individual's self-interest is sheltered over the long run. Fair procedures and treatment serve as an significant sign of the decision maker's benevolence, neutrality and honesty (Lind, 1997). When a particular decision is out of an individual's best self-interest, just procedures guarantee the individual that, over time, he or she will accept what is due from the exchange relationship (Lind, 1997).
Second, procedural justice is vital to individuals because it insists their position and value to the relationship, group or association (Lind, 1997). It is based on the hypothesis that people come to value and obtain their uniqueness from memberships in groups (Lind, 1997).
Procedural justice is considered "pivotal cognitions" since such judgments have a strong collision on attitude and behavior pertaining to the exchange relationship (Lind, 1997). In particular, it supports commitment and acceptance to decisions (Korsgaard et al, 1995). People who are being treated fairly are more likely to collaborate and comply with others (Giacalone & Greenberg, 1997; Konovosky & Pugh, 1994; Kim & Mauborgne, 1991) Eventhough fair procedures might lead to unfavorable outcomes, individuals are less able to make external attributions and instead can concentrate more on their own responsibility. For instance, "Since the procedure was fair, perhaps the unfavorable outcome was my fault" (Barclay et al, 2005).
2.1.2 Interactional organizational justice:
According to sociologist John R. Schermerhorn, Interactional Justice refers to the degree to which the people affected by decision are being treated with dignity and respect. It refers to how people treating each other. A person is interacting immediately when he or she properly shares information and avoids rude or nasty comments.
There are two...