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The aim of this study is to analyze the impact of organizational justice on organizational performance. Organizational justice includes the perceptions of employees related to compensation, relationships, rewards, results, decision making and participation in decision processes. Organizational performances, on the other hand, are the financial performance, operating performance, efficiency and effectiveness. Both organizational variables have close connections with organizational efficiency and effectiveness. The research was conducted with 15 employees who work at Bank of Agriculture Sokoto Branch. The findings of the research revealed that all the hypotheses tested have great positive influence on organizational performance. It is recommended that organizational justice should be carefully enshrined in various organizations and be backed up with careful monitoring.
1.1 Background to the Study
Justice is a concept that has many dimensions which encompasses the range of questions, all from compensation that you get to behavior treatment with you by your superior. According to Moorman (1991); the function of fairness related to the place of work is referred to as organizational justice (OJ); it includes the ways that decide the fair treatment with employees during performing their jobs and as a result this influence employee’s behavior at work. As mentioned by Greenberg (1990), organizational justice (OJ) is linked with the perceptions of staff related to the fairness of work. Actually, he put into use this expression to give explanation and to examine the part that fairness played in place of work. Unfairness or biasness is the base that leads the organization to troubles and offenses. According to another description, it is the structure which affects the work attitudes of employees towards division of labor, wages, rewards and recreation conditions along with determining the quality of social interaction Dinç and Ceylan, (2008).
Likewise, Matin et al, (2010). describes the types of justice as follows: Distributive justice is the type of organizational justice that put emphasis on the perceptions of the people that the amount they received fairly related to the outcomes of the value added work and Procedural justice is referred to as people’s beliefs of the fairness of the procedures that decide the outcomes they have, unfair procedures lead to the rejection of entire system. According to Williams et al, and Moorman (2002) interactional justice is a significant part of procedural justice because it has been found that when managers take actions within their organization, if procedural justice exists the mode of performing and giving explanations about their decisions plays an important part in determining it.
Justice is one of the most important factor influencing satisfactions of the personal of an organization so that perceiving injustice will result in the personnel dissatisfaction which leave negative influence on their performance. Organizational justice (OJ) is used to illustrate the function of fairness as it has direct effect on employee’s performance, particularly organizational justice is deal with the situation when employees conclude about their treatment in their jobs and how this perception effect their work related performance Moorman, (2009). Furthermore, empirical evidences demonstrated that it has positive effect on the performance and efficacy of organizations. Besides, Wei (2010) also mentioned that organizational justice (OJ) has a significantly positive effect on the organizational performance (OJ) of small- and medium enterprises (SMEs).
In spite of the above mention significances or relations between organizational justice (OJ) and organizational performance (OP), organizational justice (OJ) continue to face some setbacks which have become bane to; it doesn’t actualization/incentive for employees’ especially competent personnel. Unjustifiable or improper promotion or under-placement of personals in most public organizations. Lack of impersonal relation between employers and employees. Lack of corporate social responsibility especially among most private organizations and the host communities. Also conflicting objective advocated by labour/trade unions are among the factors apparently militating against organizational justice (OJ) in most public or private organizations and will also shrink organizational performance.
This research therefore, is very timely in the sense that it will rigorously and systematically looks at the identified problems, provide useful recommendations (solutions) to the identified problems.
1.2 Statement of the Research Problem
This project work intends to look at some of the problems that could mitigate against the emergence organizational justice (OJ) which will shrink organizations performances (OP). Some of the problems that trigger the research are; lacks of equitable compensation/incentive which implies organizations that lack the ability to pay wages and salaries regularly are in danger of disintegration, poor wages are a constant source of frustration and can result in decline in performances. Secondly, improper placement of personals in most public organizations this can be as a result of gender discrimination, ethnicity, state-ism, improper recruitment, mutual conspiracy, corruptions, nepotism etc. this all can result to low organizational performance. Impersonal relation between employers and employees, in this sense lacking human relation, ethical behavior, cooperation, trust acts as an impediment to employers performances. Also, Lack of corporate social responsibility especially among most private organizations and the host communities are among the factors apparently militating against organizational justice (OJ) in most public or private organizations.
Therefore, it is against this background that the research set to answer the following questions:-
i. To what extent has lack of equitable compensation/incentive affect organizational performance (OP)?
ii. What is the effect of improper promotion or under placement on organizational performance (OP)?
iii. Can employer-employee impersonal relation promote organizational justice (OJ)?
iv. Is there any relationship between corporate social responsibility and organizational Justice (OJ)?
1.3 Objectives of the Study
For the purpose of this research the objectives of the study is divided into two; General objective and Specific objective. The former is to evaluate the relationship between organizational justice (OJ) and organizational performance (OP). The latter are therefore listed below;-
i. To examine the extent to which lack of equitable compensation/incentive can affect organizational performance (OJ).
ii. To examine the extent to which improper placement affects organizational performance (OP).
iii. To know whether employer-employee impersonal relation can promote organizational justice (OJ).
iv. To ascertain whether there is relationship between corporate social responsibility and organizational justice (OJ).
1.4 Hypotheses of the Study
i. Equitable compensation/incentive will ensure organizational performance (OP).
ii. That improper placement can lead to organizational performance (OP).
iii. Employer-employee impersonal relation can promote organizational justice (OJ).
iv. If there is corporate social responsibility, then there will be organizational justice (OJ).
1.5 Significance of the Study
The significance of this study comes in different ways. The research will be capable of providing recommendations that will aid the enhancement of organization justice (OJ) which lead to organizational performance (OP). It will also serve as input for future researchers who will like to carry out researches in related field.
1.6 Scope and Limitations of the Study
This research work will cover Bank of Agriculture (BOA), Sokoto. It will focus on the role of organizational justice (OJ) in organizational performance (OP). However, the researcher could not be able to cover all the areas due to limited time frame, financial constraints coupled with the uncooperative attitude of workers releasing some needed information.
1.7 Scheme of Chapters
This research is divided into five chapters; chapter one deals with introduction; background to the study, statement of the research problem, objectives of the study, hypotheses of the study, significance of the study scope and limitation to the study. Chapter two looks at the review of related literature on organizational justice (OJ) in promoting higher organizational performance (OP) in organizations.
Chapter three deals with research methodology, research design, population of the study, sample and sampling techniques, source of data collection, instrument of data collection, method of data analyses and hypotheses testing. While chapter four deals with data presentation and analysis.
Finally, chapter five deals with summary, conclusions and recommendations.
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