Service Marketing/ Non-Profit Marketing/ Ethics
Services marketing and organizational behavior researchers have studied factors that have a positive influence on employees’ job performance. They viewed that the manager’s role in dealing with his/her subordinates is critical in producing the desired outcomes such as employee job performance. This study based on organizational justice and Leader-Member Exchange (LMX) theory, presents and tests a model, in which relationships among justice, LMX, trust, and job performance are examined. More specifically, the study examines the impact of organizational justice on the quality of LMX and the effect of LMX on employees’ attitudinal and behavioral aspects (trust and job performance). The study employs four dimensions of justice, two bases of trust and two types of job performance. By using a dimensional approach, the study attempts to investigate and comprehend dynamic and complex relationships among the variables. Using the data collected from restaurant employees in South Korea, the study finds that all dimensions of justice have a positive influence on the quality of LMX. LMX plays a significant role in affecting two bases of trust (cognitive trust and affective trust) and two dimensions of job performance (task performance and helping behavior). The study also found that not cognitive trust but affective trust influences task performance. The finding that distributive justice explains the largest portion of the variance in the quality of LMX suggests that distributive justice plays the most important role in building and maintaining the quality of manager-employee relationship. Employees care about fair distribution of the resources and outcomes that reflect the efforts they put into the work. The importance of quality of leader-member exchange is highlighted in this study. The high-quality relationship developed through the organization’s institutionalization of justice helps employees have trust in the leaders. It seems that justice is a mechanism through which managers and employees develop a highquality relationship. The study also found that affective trust has a significant positive effect on task performance, suggesting instilling and nurturing trust among employees is critical for improving their job performance.
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Lee, Yong-Ki; Kim, Sally; Son, Mun-Hyun; and Kim, Min-Seong, "Examining Organizational Justice in the Context of LMX and the Effect of LMX on Trust and Job Performance" (2013). Association of Marketing Theory and Practice Proceedings 2013. 53.