Volume 19, Issue 2

Fairness at Work: How Organizational Justice Drives Employee Satisfaction and Performance in Rural Pakistani Banks

The study This study examines the impact of organizational justice on job satisfaction and performance of employees in rural banking sector in Sindh, Pakistan. Based on the Equity Theory, Social Exchange Theory, and Organizational Support Theory, the paper explores the relationship between employee distributive, procedural and interactional justice perceptions and their work attitude and behavior. A quantitative methodology was employed and a structured questionnaire consisting of 15 items was used to administer the questionnaire to 300 employees of the bank in both print and electronic survey forms. The SPSS analysis involved reliability, correlation, and regression analysis. The results reveal a strong, positive correlation between organizational justice and both outcome variables. Organizational justice accounted 56.3 and 51.1 percent of the variation in job satisfaction and employee performance respectively. These results affirm that employees who feel fair when deciding on work-related issues, inter-relationships, and work results have higher chances of satisfaction and better performance. This study provides contextual insights for rural financial institutions where formal HR systems do not exist, and interpersonal fairness is the most important factor.