Organizational Justice and Receptivity to Individual Pay-for-Performance: Mediating Role of Trust in Management

초록

As business environment heavily fluctuate, adaptation and changes in organizations are necessary for survival. However, not all organizational changes are reported to be successful. The main reason of failure for organizational change is due to the resistance of employees to change. Thus, focusing on the receptivity to change of employees, we investigated the impacts of organizational justice and trust in management on receptivity to change in the compensation system. Specifically, with the 1,227 employee sample of one large Korean bank which was scheduled to adopt individual pay-for-performance, we investigated the impacts of procedural justice, informative justice, and trust in management on receptivity to individual pay-for-performance. The results of structural equational modeling analysis showed that procedural justice and informative justice had positive effects on the trust in management, and trust in management had a positive effect on receptivity to pay-for-performance. However, informative justice had only a indirect effect on receptivity to pay-for-performance through the trust in management. Limitations and directions of future research are also discussed.

키워드