Effect of Organizational Justice on the Performance of Selected Manufacturing Companies in Abuja

Abstract

The study investigated the effect of organizational justice, proxy by distributive justice, procedural justice, and interactional justice, on the performance of selected manufacturing companies in Abuja. Employing a survey research design, data was collected from 360 staff members selected from a population of 898 across ten manufacturing companies in Abuja; with the sample size determined using Yamane’s (1967) formula and adjusted by 30% to ensure adequate response. A structured Likert scale questionnaire was used for data collection, and the analysis was conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM) with the aid of SmartPLS v3. The findings revealed that while procedural justice did not have a statistically significant effect on organizational performance, distributive justice and interactional justice had significant positive effects. Based on these results, the study recommends that companies enhance fairness in resource distribution and improve the quality of interpersonal interactions within the workplace to boost organizational performance. Additionally, companies should periodically review and refine their procedural justice strategies to align with best practices, even though their direct impact on performance may be limited.