Research On How Organizational Justice Affect Employee's Work Performance And Turnover Intention In Private Technical Smes

Organizational Justice Theory has been the research focus in recent years. Researchers of both at home and abroad have got rich results on the concept and structure as well as the influential variables of organizational justice after years of discussion. Numerous studies and analysis show that organizational justice can not only effectively affect employee's attitudes and behavior toward organization, but help improve their work performance and reduce turnover behavior. However, existing research on organizational justice is still inadequate. On one hand, there is neither consensus on how dose different dimensions of organizational justice affect work performance and turnover intention, nor the effect mechanism of organizational justice. Issues such as whether the effect is direct or indirect or both, if there is any mediator or moderator are worthy of further exploration. On the other hand, there is no research subdivision according to different subjects. The universal applicability of existing conclusion is questionable. In addition, though numerous research proves that organizational justice is an important factor affecting work performance and turnover intention, the managers have to confront a question of reality: how to develop appropriate policies according to the characteristics of enterprises, the actual demand of employees, and the environments inside and outside the enterprises so as to make the employees fully aware of the organizational justice, which can help enhance organizational commitment of the employees as well as improve their work performance and reduce their turnover intention. Scholars in China have engaged in a series of research on organizational justice, but little research has been carried out on how organizational justice affect employee's work performance and turnover intention in private technical SMEs(Small and Medium Enterprises). This paper, reviewing previous studies and selecting private technical SMEs in China as the research objectives, theoretically proposes a hypothetical model with organizational justice, work performance, turnover intention, organizational commitment and power distance serve as the independent variable, dependent variable, mediator and moderator respectively. The paper aims to test the role of organizational justice in affecting employee's work performance and turnover intention, and to discuss the mediating and moderating roles of organizational commitment and power distance.Samples of the current research are collected from 17 private technical SMEs in Jilin Province, Beijing and Shanghai. I sent out 550 questionnaires, 275 for supervisories and 275 for subordinates. Finally, I got 244 supervisory-subordinate dyads data. Using the 244 supervisory-subordinate dyads data and the analysis methods of correlation and hierarchical regression, this paper reached the following research conclusions:1. Effect of technical employee's organizational justice on organizational commitment.Distributive justice, procedural justice, interpersonal justice and informational justice all affect organizational commitment with procedural justice as the main influencing factor.(1) Procedural justice help satisfy the technical employees'needs of taking part in making the decision related to their own interests to some extent, which can enhence the employees'identity of the enterprise's goal and values as well as make them feel pride as a member of the enterprise. Compared with the manufacturers, employees in private technical SMEs care more about prodecures and methods. Though distribution results also affect organizational commitment, procedural justice is more important.(2) Interpersonal justice and informational justice reflect the quality of interaction between employees and employer. Technical employees tend to contempt of authority and have more needs in communication. If the employer can treat employees with courtesy and take full account of their dignity, as well as privding necessary information related to the employees'interests, the employees can feel more satisfaction with the enterprise and improve their organizational commitment.(3) If the employees regard their input in the enterprise equles to the output, that is distributive justice, the employees will have more confidence and trust in the enterprise, and improve their job satisfaction and sense of loyalty to the enterprise, thus showing the role of organizational commitment to repay the enterprise.2. Effect of technical employee's organizational justice on work performance.Distributive justice predicts employee's performance significantly, while procedural justice, interpersonal justice and informational justice fail to affect employee's performance. The reason lies in the characteristic of technical employees and the features of private SMEs. This shows that only distributive justice plays as a motivation factor on job performance, the others plays as hygiene factors.Organizational commitment fails to be a mediator between distributive justice and work performance. The reason is that organizational commitment brought by distributive justice will lead to some non-substantive behavior, such as satisfaction on enterprise-employee exchange, trust in managers and confidence in the enterprise's development.Power distance fails to be a moderator between distributive justice and employees'work performance, the reason lies in that distributive justice shows a fair exchange between employees and enterprise on the principle of instrumental relations, while power distance largely reflects the feelings requirement of the employees.3. Effect of technical employee's organizational justice on turnover intention.Distributive justice, procedural justice, interpersonal justice and informational justice all affect employee's turnover intention with the interpersonal justice as the main influencing factor. This shows that employee are sensitive to all the dimensions of organizational justice, unsatisfaction of any dimension can lead to turnover intention. Employee cares most about interpersonal justice, which is determinded by the employee's special characteristic and strong emotional demand.Organizational commitment mediates the relationship between organizational justice(distributive justice, procedural justice, interpersonal justice and informational justice)and employee's turnover intention. This proves that the main reason of employee's turnover intention lies in their decrease affection to the enterprise because of organizational unjustice.Power distance moderates the relationship between procedural justice and employee's turnover intention. Power distance also moderates the relationship between informational justice and employee's turnover intention. However, power distance fails to be a moderator between distributive justice and employee's turnover intention, and between interpersonal justice and employee's turnover intention. The reason is that distributive justice relates to allocation outcomes, wihle procedural justice and informational justice relates to judgments on enterprise and employee which tend to be affected by power distance more possibly.4. Suggestions and countermeasures for private technical SMEs.Based on the results, we propose some countermeasures for the private technical SMEs in China. In order to improve the employee's work performance, the enterprise should pay more attention to distributive justice, improve the incentive mechanism and establish a reasonable salary system. In order to decrease the employee's turnover intention, the enterprise should pay more attention to interpersonal justice. Careness and respect from employer can make the employees feel warm and the sense of belonging. In order to improve the employee's organizational commitmeng, the enterprise should pay more attention to procedural justice.A series of efficient and standardized management systems can effectivly improve the employee's organizational commitment.This paper has great significance in enriching both the theory and methods in organization management, and can help improve employee's work performance and decrease employee's turnover intention for private technical SMEs in China.