Employee Insights into Organizational Justice and Job Performance: The Case of Insurance Companies

Abstract

This paper explores employee insights into organizational justice and job performance. It also examines the association between employee insights into organizational justice and their personal traits and analyzes the association between employee insights into organizational justice and job performance. This study used descriptive statistics as well as correlation analysis. The survey data were gathered from 250 employees of ten insurance companies (including both life and non-life) in Kathmandu Valley. The results indicate a significant and positive association between employee insights into organizational justice and job performance. It indicates that the justice of management matters a lot in enhancing employee job performance at work. The study's findings also reveal a substantial association between all employees' demographic characteristics and their insights into organizational justice. It indicates that when employers treat their employees fairly, they do well on the job. To develop a climate of organizational justice, organizations must ensure that rewards and resources are distributed fairly. It should prioritize clear compensation policies, fair reward systems, and performance-based incentives. It must also prioritize the establishment of fair and consistent decision-making systems by creating standardized systems for evaluations, promotions, and disciplinary actions. In addition, fostering respectful and equitable interpersonal interactions can also help to build an environment of organizational justice. For this, organizations must train managers and supervisors on effective communication skills, emphasizing the importance of treating employees with dignity and respect, promoting open-door policies in which employees feel comfortable discussing concerns, and ensuring that managers provide clear and honest clarification for decisions. All of these activities ultimately increase employees' willingness to optimize their potential for higher levels of job performance.

Received: 29 July 2024 | Revised: 12 September 2024 | Accepted: 8 October 2024

Conflicts of Interest 

The authors declare that they have no conflicts of interest to this work.

Data Availability Statement

Data sharing is not applicable to this article as no new data were created or analyzed in this study.

Author Contribution Statement

Prakash Shrestha: Conceptualization, Validation, Investigation, Resources, Writing - original draft, Writing - review & editing, Supervision, Project administration. Dilip Parajuli: Methodology, Data curation, Funding acquisition. Makshindra Thapa: Software, Formal analysis, Visualization.