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The aim of this paper is to test how leader–member exchange (LMX) interacts with procedural justice climate to influence three types of employee motivation (i.e. achievement striving motivation, status striving motivation and communion striving motivation). Furthermore, this study empirically examines the indirect effects of LMX on customer loyalty through employee motivation and service orientation.

This study used a matched sample of 188 retail service employees and 376 customers from a large shopping mall in South Korea to test the empirical model. Structural equation modeling (SEM) and bootstrapping method were employed to test a series of proposed hypotheses.

The results show that LMX significantly enhances customer loyalty through two motivational dimensions and service orientation. In particular, this study shows that achievement and status striving motivation are directly related to service orientation, but communion striving motivation does not affect customer-focused service attitude. In addition, procedural justice climate serves as a critical moderator and synergistically interacts with LMX to influence achievement and status striving motivation.

This study offers new insight regarding how managers' roles in both individual (leader–member exchange) and organizational (procedural justice climate) level affect different forms of retail service employee motivation and service orientation, which in turn, result in customer loyalty.

The results suggest that when retail service employees perceive procedural fairness at retail stores, they are more motivated to work hard to complete their assignments and achieve their sales goals in conjunction with leader support. Therefore, managers must provide a clear guideline and procedure regarding salary raises and performance evaluations or engage in thorough discourse on such matters with employees prior to announcements of such decisions. Moreover, as retail service employees interact with customers in the frontline, and how they serve customers plays a key role in creating customer loyalty. Managers should encourage retail service employees to engage in service-oriented behaviors.

The results suggest that LMX facilitates more formal task-related motivation to achieve either tasks or status while it is less related to relationship-building motivation, which is a unique contribution of this study. The results offer better understating of how LMX differentially leads to specific types of employee motivation in the existing literature.

The purpose of this paper is to explore the antecedents and consequences of the level of procedural justice climate in new product development (NPD) teams. The aim is to discover answers to the following questions: First, can the procedural justice climate level be used to predict NPD team outcomes such as product performance and product creativity? Second, what NPD team characteristics can be leveraged to improve the justice climate?

A theoretical model was developed and tested on the survey data collected from 93 product managers of Turkish companies. The product managers who participated in this study represented various industries, including those of telecommunications, food, material, software, machinery, chemicals, and service technologies.

Statistical analyses demonstrated that stability, collectivism, and moderate‐level functional diversity of teams were significantly related to the procedural justice climate. In addition, procedural justice climate had significant positive impacts on new product creativity and speed to market. Such impacts were found to be more significant with regard to high‐turbulence conditions.

This paper is the first attempt to explore the role of procedural justice in NPD teams.

Building upon the “fair exchange in leadership” notion (Hollander; Scandura), the purpose of this paper was to hypothesize the mediating impact of procedural justice climate on the relationship between leader‐member exchange (LMX) and two attitudinal outcomes: organizational commitment and turnover intentions.

A total of 224 managers voluntarily participated in the study. They represented nine multinational companies located in northern Malaysia. Data were collected by means of a structured questionnaire containing widely used scales to measure LMX (contribution, affect, loyalty, and professional respect), procedural justice climate, organizational commitment (affective, normative, and continuance), and turnover intentions. After establishing the goodness of measures, hypothesized relationships were examined using Structural Equation Modeling (SEM). While commitment and LMX were, respectively, conceptualized as 3‐ and 4‐dimensional constructs, procedural justice climate and turnover intentions were each treated as unidimensional constructs.

Whereas hypotheses for direct effects received low‐to‐moderate support, the mediation hypothesis received substantial support only in the case of professional respect dimension of LMX.

The study has obvious implications for leader‐member exchange and procedural justice in organizations. Though findings are in line with those in the past research, they should be viewed with caution – given the nature of cross‐sectional data.

Management needs to pay attention to the quality of LMX, as today's employees look for mutual trust.

This chapter reviews research on multi-level organizational justice. The first half of the chapter provides the historical context for this issue, discusses organizational-level antecedents to individual-level justice perceptions (i.e., culture and organizational structure), and then focuses on the study of justice climate. A summary model depicts the justice climate findings to date and gives recommendations for future research. The second half of the chapter discusses the process of justice climate emergence. Pulling from classical bottom-up and top-down climate emergence models as well as contemporary justice theory, it outlines a theoretical model whereby individual differences and environmental characteristics interact to influence justice judgments. Through a process of information sharing, shared and unique experiences, and interactions among group members, a justice climate emerges. The chapter concludes by presenting ideas about how such a process might be empirically modeled.

The purposes of this paper are three‐fold: first, to examine the effect of diversity climate on professional employee of color outcomes, organizational commitment and turnover intentions; second, to investigate the moderating and mediating roles of interactional and procedural justice on the relationships between diversity climate and the outcomes; and third, to explore the interactive effect of racial awareness and diversity climate on reported psychological contract violation.

The authors conducted a survey of 182 professionals of color. Correlation, factor analysis, and regression were employed to test the hypotheses.

Results indicate that diversity climate affects organizational commitment and turnover intentions. Interactional and procedural justice played mediating roles between diversity climate and employee outcomes. Moderated mediation analysis indicated that for turnover intentions, there was moderated mediation under both low and high procedural justice conditions. When a diversity climate was perceived to be fair, racially aware respondents reported lower levels of psychological contract violation.

Professionals of color from one US industry completed the survey, so conclusions about generalizability should be drawn with caution. Data were cross‐sectional and single‐source. However, the findings were consistent with past research, lending credibility to the results.

Recent research on workforce diversity has highlighted the importance of effectively managing all organizational members. The paper shows that the diversity climate and organizational justice impact employee of color outcomes. Thus, for managers, creating and maintaining a positive, fair diversity climate will be important for attracting and retaining high‐quality professionals of color in US organizations.

Migrant workers often suffer from social exclusion in the workplace and therefore identify less with their organization and engage less with their work. To address this issue, the authors integrate research on migrant workers with research on the group engagement model to create a model for understanding and enhancing migrant worker engagement. This allows us to provide insight into how organizations can design their human resource management systems and practices to increase the work engagement of migrant workers.

The authors conducted a survey study with over 4,000 employees from more than 500 workplaces in Australia to test the model.

The results of the multilevel analysis indicate that a procedurally fair work environment increases organizational identification, which in turn is associated with higher work engagement. The results also indicate that procedural justice climate is more important for migrant workers and increases their organizational identification and engagement.

To increase work engagement of migrant workers, organizations can establish a procedurally fair work environment in which cultural minorities experience unbiased policies and procedures, are able to express their opinions and participate in decision-making.

The purpose of this paper is to investigate the impact of organizational justice on the ethical climate in organizations in Serbia.

In the study, 3,413 employees participated whose task was to assess the dimensions of organizational justice (procedural, distributive and interactional) as well as the dimensions of ethical climate (egoism, benevolence and principle).

The obtained results show that the dimensions of organizational justice are significant predictors of dimensions of ethical climate. The dimension of distributive justice significantly predicts the dimensions of egoism and principle, while the dimensions of procedural and interactional justice significantly predict the dimensions of benevolence and principle. Concerning the structure of the relationship between dimensions of organizational justice and ethical climate, the results also showed that there is intra-national diversity depending on the region of the Republic of Serbia where the organization operates. Ethical climate based on maximization of personal interest is more connected to economically more developed regions with a larger population, while ethical climate based on duties related to norms, laws, rules and policies characterizes less developed regions with a smaller population.

In the context of contemporary Serbian business surrounding, the obtained results are discussed regarding the possibilities for improvement of ethical climate, which should be accompanied and supported by the positive impact of organizational justice.

The purpose of this study is to examine the impact of ethical climate and organizational justice perceptions on the quality of manager‐employee relationships via leader‐member exchange (LMX). It also aims to explore differences between distributive justice, procedural justice, and interactional justice perceptions as related to LMX. The purpose of this research was to investigate the relative strength of connections between ethical climate, these three types of justice perceptions, and LMX.

The research was conducted via survey administration of questionnaires. The sample consisted of 105 working adults in an Israeli telecommunications company.

It was found that there was a significant positive relationship between perceived interactional justice and levels of LMX. No significant relationships were present between LMX and the other types of justice perceptions. Furthermore, it was discovered that there was a significant positive relationship between ethical climate and LMX. As an important, unexpected finding the study discovered a significant negative relationship between ethical climate and procedural justice.

This is one of the few studies to examine the effects of justice perceptions together with ethical climate perceptions on LMX. As such, these findings offer guidance in the development and implementation of further studies to examine the linkages between these constructs. In particular, it suggests that these findings provide a framework for examining the potential moderating role of ethical climate in the relationship between interactional justice perceptions and LMX.

The chapter by Rupp, Bashur, and Liao (in this volume) is rich with ideas for the study of a justice climate. This comment on their chapter focuses on three areas that flow from their presentation: issues in modeling climate strength, complexity and simplicity in conceptualizing a justice climate, and an alternative conceptualization of a justice climate. Specifically, it describes how polynomial regression and response surface methodology may assist researchers in examining climate fit. The comment also describes the benefits of a simplified view of a justice climate – one focusing on the overall justice climate. Finally, it develops a framework for examining a climate for justice – a climate that promotes fair behavior in organizations.

Purpose – The purpose of this chapter is to explore the effects of team composition on justice climate strength. Specifically, we adopt a social network approach to justice in teams to explore the social-psychological mechanisms underlying diversity effects.

Design/methodology/approach – Using data from 80 self-managed project teams, we consider the impact of surface-level and deep-level diversity in teams on member social network ties and subsequently dispersion in their perceptions of procedural and interpersonal justice.

Findings – The results showed that diversity in team members’ psychological attributes – specifically, preferences for individualism – were associated with variability in members’ attachment to the team. In contrast, team gender and racial diversity were not significantly related to member social network ties. The results also demonstrated a relationship between network tie diversity and both procedural and interpersonal justice climate strength, such that variability in members’ attachment to the team was related to variability in their justice perceptions.

Overall, these findings demonstrate that teams characterized by higher levels of deep-level diversity may experience greater variability in their social interactions, which amplify variability in members’ justice perceptions.

Implications – Practically, these findings suggest that potential performance advantages of informational diversity in teams may come at a cost, as such diversity may reduce the quality of members’ justice experiences. Theoretically, they provide insight into the nature of the relationship between diversity and justice, which is largely dependent on the social psychological processes evoked by diversity. They also highlight team social networks as a useful means for examining such processes and understanding the operation of justice in teams.