The Mediating Role of Organizational Justice in Linking Human Resource Practices to Employee Outcomes: Evidence from Indian Banks

Abstract

The study represents a pioneering and seminal attempt to understand the implications of human resource practices on employee outcomes in the Indian banking sector from an organizational justice perspective. The study aims to examine the mediating influence of organizational justice perception between HR Practices and employee outcomes of job satisfaction and stress. The study expands by examining three different dimensions of organizational justice namely, distributive justice, procedural justice, and interactional justice. Data was collected using stratified sampling from 328 respondents from Indian public and private banks in Delhi. The study tests the conceptual framework using exploratory factor analysis, confirmatory factor analysis and path analysis for mediation effect using Hayes approach of bootstrap method. Using cross-level analysis, the relative influence of interactional justice was found to be largest for job satisfaction in private banks. The study contributes to the existing debate that exists around “how” employee perception of human resource practices leads to employee outcomes. This research will sensitize human resource practitioners working in Indian banks on how to implement human resource practices as an intervention to bring positive employee outcomes.