Keywords : Formalization

The Effect of Organizational Structure on Organizational Justice Perceptions of Employees

Mehtap Özsahin; Senay Yürür

International Journal of Organizational Leadership, 2018, Volume 7, Issue 4, Pages 440-453
DOI: 10.33844/ijol.2018.60290

The antecedents of perceived fairness of employees about their executives and organizations need to become evident because organizational justice results in both positive and negative changes in behaviours and attitudes of employees. Although, organizational justice refers to the employees’ perceptions about organizational structure and practices, the studies systematically examining organizational factors as antecedents of organizational justice are very rare. In this context, this survey aiming to search the effects of structural factors in terms of centralization and formalization on organizational justice perception of employees is expected to contribute to literature. The survey is conducted on 356 employees of 15 SMEs operating in manufacturing and service industry in Marmara Region-Turkey.  Data obtained from those 356 questionnaires were analysed through the AMOS statistical program. Confirmatory factor analysis (CFA) using AMOS 22.00 statistical programme is conducted to test construct validity and reliability. To test hypotheses, researchers employed structural equation modelling (SEM) with maximum likelihood estimation. Survey findings revealed a positive relationship between formalization level as a component of organizational structure and perceived organizational justice of employees, which is consistent with the previous studies in literature. The finding of this survey revealing a non-significant effect of centralization on procedural and distributive justice is inconsistent with the most of previous studies. However, two surveys conducted in Turkey about that issue had produced similar results strikingly. Thus, findings of a non-significant effect of centralization on procedural and distributive justice but a positive effect on interactional justice may have some Turkish culture-specific implications.