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Article Title

Justice or Just between Us? Empirical Evidence of the Trade-Off between Procedural and Interactional Justice in Workplace Dispute Resolution

Abstract

In this article, the authors examine the relationship between an employer’s implementation of a typical dispute resolution system (DRS) and organizational justice, perceived compliance with the law, and organizational commitment. They draw on unique data from a single, geographically expansive, U.S. firm with more than 100,000 employees in more than 1,000 locations. Holding all time-constant, location-level variables in place, they find that the introduction of a DRS is associated with elevated perceptions of interactional justice but diminished perceptions of procedural justice. They also find no discernible effect on organizational commitment, but a significant boost to perceived legal compliance by the company. The authors draw on these findings to offer a “differential-effects” model for conceptualizing the relationship among organizational justice, perceived legal compliance, and the implementation of dispute resolution mechanisms. This paper draws on unique data from a single, geographically-expansive, US firm with well over 100,000 employees in over 1,000 locations to examine the relationship between an employer’s implementation of a typical dispute resolution system (DRS) and organizational justice, perceived compliance with the law, and organizational commitment. Holding all time-constant, location-level variables in place, we find that introduction of the DRS is associated with elevated perceptions of interactional justice but diminished perceptions of procedural justice. We also find no discernible effect on organizational commitment, but a significant boost to perceived legal compliance by the company. The authors draw upon these findings to offer a “differential-effects” model for conceptualizing the relationship among organizational justice, perceived legal compliance, and implementation of dispute resolution mechanisms.

As of August 31, 2014, the ILR Review is published by SAGE. Please visit the journal site to read this article.

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