The Effect of Organizational Justice on Leader-Member Exchange (LMX) and Withdrawal Behaviors

Abstract

Organizational justice has become the center for many studies as it is related to the success of every organization. Organization that is fair in its procedures, policies, distribution systems and interactions, its employees give better response to the organization in terms of productivity and positive behaviors (i.e., organizational loyalty, organizational citizenship behaviors, job engagement and job satisfaction) (Akanbi, Ayobami, Ofoegbu and Eugene, 2013). Moreover, organizational justice perceptions have been identified as an important factor related to social exchange relationships in the workplace as the previous studies have revealed that organizational justice plays a critical role on employees‟ perceptions of leader-member exchange (LMX) (Williams, Scandura, Pissaris and Woods, 2016). LMX represents the social exchange process between an employee and his/her supervisor. Based on this reciprocal relationship, the subordinates are labeled as in-group (high quality LMX) or out-group (low quality LMX). In-group exchange goes beyond the formal contract which is characterized by reciprocity, extra-contractual behavior, mutual trust, respect and support. While out-group exchange is characterized by task- based relationship (Chernyak-Hai and Tziner, 2014; Jordan and Troth, 2011).