Perception of Justice and Trust in Software Industry of Pakistan

Abstract

The present study concentrates on how organizational justice influences trust and performance of employees in an organization. Trust level of employees is affected by how employees perceive justice in organizations and hence, it also affects the performance of the organization. It may be inferred that trust is a vital component in mediating the connection of organizational justice and organizational performance. The industry used for the present research is the software industry of Pakistan. A structured questionnaire was sent to 350 employees, randomly selected, working in various software firms in Punjab, Pakistan. Structural Equation Modeling - AMOS was applied for analyzing the data. The findings from the research revealed that trust played a strong mediating relationship between fairness and performance of the organization. The results provide useful insights for organizations, particularly the software firms of Pakistan since this study considers factors other than economic gain that may be more important to the employees in improving the performance of the organization.