Trust in supervisor as a mediator of the relationship between perceived interactional fairness in reward systems and organizational commitment

Summary

The research paper by Abdin, Ismail, and Nor (2019) investigates the mediating role of trust in supervisors in the relationship between perceived interactional fairness in reward systems and organizational commitment. The study aimed to expand existing literature by empirically examining this mediating effect, particularly within a Southeast Asian context. The authors highlight that while financial and non-financial rewards are crucial, the fairness of their administration, specifically the interactional fairness, significantly impacts employee attitudes. Interactional fairness refers to the quality of interpersonal treatment employees receive from their supervisors when reward decisions are made, including elements like communication openness and adequate information provision. For their methodology, the authors employed a quantitative approach, utilizing the SmartPLS method to analyze survey questionnaire data. The data was collected from employees working at a national audit department in Malaysia. This specific context in Southeast Asia provides valuable insights into how these relationships manifest in public sector organizations in that region. The study's design aimed to test the hypothesis that trust in supervisors acts as a significant intermediary, translating employees' perceptions of fair treatment in reward systems into stronger organizational commitment. The theoretical underpinning for this investigation draws from concepts like Blau's (1964) social exchange theory, which posits that good treatment from supervisors fosters trust, leading to reciprocal obligations from employees, and Dansereau, Graen, and Haga's (1965) leader-member exchange theory, emphasizing quality relationships between leaders and workers. The key findings of the study reveal that the effect of perceived interactional fairness in reward systems on organizational commitment is indeed mediated by trust in supervisors. This means that simply having fair reward systems is not enough; the way supervisors interact with employees regarding these rewards—through open communication and equitable treatment—is critical in building trust. This enhanced trust, in turn, significantly boosts employees' commitment to their organization. The theoretical contribution of this research lies in proving the effectiveness of perceived interactional fairness as an essential mediating variable in reward system administration. Managerially, the implications are particularly relevant for public organizations in Southeast Asia, suggesting that superiors should encourage and support supervisors in implementing good treatment styles. This involves ensuring fairness in pay decisions and interactions with diverse subordinates, which can ultimately enhance employee trust and organizational commitment. The study, however, acknowledges limitations, including its specific sample, reliance on a self-report questionnaire scale, and the exclusion of several demographic variables like gender, age, education, position, and duration of service.