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Journal of
Managerial
Psychology
17,8
Yongqing Fang
Nanyang Business School, Nanyang Technological University,
Singapore, and
Jianfeng Li
College o f Business Administration, The Peoples University o f China,
Beijing, China
K eyw o rd s Procedures, Equal opportunities, Employees, China
A b stra c t Power distance was tested as a moderator of the relationship between justice concerns
and employee outcomes in a sample of employees in the Peoples Republic of China. Two
hypotheses were developed based on the quality of authority-member relations prescribed by the
relational model o f authority in groups. In two-way interactions, higher power distance combined
with procedural justice to predict employee outcomes, whereas lower power distance combined
with distributive justice.
Power distance
and justice
693
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Psychology
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The group-value model of procedural justice (Lind and Tyler, 1988; Tyler, 1989)
addresses aspects of leader-subordinate relations that are central to the power
distance relationship with justice and employee outcomes. According to this
model, people value groups because they derive feelings of self-worth from
their group memberships. As a result, they attend closely to information about
their status within groups. When group procedures, which provide information
about member standing, reflect a positive, full-status position in the group, they
are judged to be fair. A subset of the group-value model, the relational model of
authority in groups (Tyler, 1989; Tyler et al., 1998), identifies three features of
authority-group member relations that contribute to procedural justice:
standing, neutrality, and trust. When procedures show concern for respect,
courtesy, and dignity (standing), are enacted with honesty and lack of bias
(neutrality), and show authority as trustworthy (trust), their fairness positively
affects group member attitudes and behaviors.
In extending the relational model of authority, Tyler et al. (1995) argue that
power distance predicts attitudes toward authority; more specifically, that
those low in power distance should closely attend to their relationship with
authorities. Presumably because of their relative equality with superiors, those
low in power distance develop strong personal connections to authorities. As a
result, they judge the legitimacy of authority actions by their relational fairness
toward subordinates. In studies conducted in China, Aryee and Chen (1999,
2000) reported procedural justice to relate positively to leader-member
exchange and Rousseau et al. (2002) found procedural justice to relate
positively to affective commitment. In studies of people from the USA, Japan,
Germany, and Hong Kong, Tyler et al. (1995) found support for power distance
as a moderator: for those lower in power distance, the perceived relational
fairness of an authority predicted the perceived legitimacy of the authoritys
actions. Procedural fairness seemed especially relevant to those who question
such legitimacy.
Tyler et al. s (1995) theory focused on procedural justice, but their line of
reasoning applies also to distributive justice. Those low in power distance, with
their greater perceived equality to authorities, also judge the legitimacy of
authorities actions by their distributive fairness. Social exchange theories have
focused on fair distribution (Adams, 1965; Rousseau, 1995). In its most basic
form, an exchange involves a favor performed by one party that creates an
expectation of reciprocity from the other (Gouldner, 1960). A social exchange
approach to justice in authority-member relations expects authorities and
subordinates to develop closer relationships through exchanges that take place
over time, enduring due to mutual judgments of an equitable response. From
the subordinates perspective, the perceived fairness of allocated outcomes
should affect attitudinal and behavioral outcomes.
We posit that power distance will interact with procedural and distributive
justice to explain justice-outcome dynamics. From a relational perspective,
lower power distance enables employees to build closer relations with
authorities, leading to the exchange of favors and obligations. A high-quality
relationship with authorities obviates the need to attend to procedural issues
because those who feel secure in their relationships need not constantly
monitor interactions for signs of meaning. Those higher in power distance, on
the other hand, find it more difficult to develop close relationships with their
bosses. Without this relationship, they cannot take procedural fairness for
granted. Therefore, procedural justice more greatly affects their responses in
such areas as satisfaction, citizenship, trust, and desire to stay with the
organization.
At the same time, a primary value of high-quality relationships is the
advantageous outcomes they are expected to produce. But the bosss
effectiveness in gaining resources from the larger organization affects such
favorable results. For those lower in power distance, distributive justice is
relevant because it is contingent on factors beyond their control. Their
perceptions of fairness in reward allocation should predict work-related
attitudes and behaviors. On the other hand, employees without a close
supervisor-subordinate connection are less likely to expect favorable rewards.
For those higher in power distance, distributive issues are less relevant because
their expectations are modest. Therefore, we predict that:
HI. Higher power distance will more strongly predict a relationship of
procedural justice with positive attitudinal and behavioral outcomes
than lower power distance.
H2. Lower power distance will more strongly predict a relationship of
distributive justice with positive attitudinal and behavioral outcomes
than higher power distance.
Power distance and justice in a Chinese context
The present study examines power distance, justice, and outcomes in a Chinese
factory. Most research on justice perceptions has been conducted in the West,
Power distance
and justice
695
Journal of
Managerial
Psychology
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696
justice in the West (e.g. Folger and Konovsky, 1989; Kim and Mauborgne, 1996;
McFarlin and Sweeney, 1992) as well as in the East (Farh et al., 1997; Rousseau
et al., 2002). The fourth variable, intent to quit, has received frequent use in the
USA (e.g. Ashford et al., 1989; Schaubroeck et al., 1994) but not much attention
in China until recently (Aryee and Chay, 2001; Chen et al., 2001; Lee et al., 2002)
because of the low rates of labor mobility up through the 1980s. In recent years,
however, the development of joint ventures, foreign-owned subsidiaries, and
town and village enterprises, as well as reduction in size and number of stateowned firms, has created an active job market. We included intent to quit to
test its relevance to employees who experience discontent from perceptions of
injustice.
Methods
Sample
The state-owned firm used in this study, which produced machine tools in
Beijing, was contacted by the fourth author. Senior management agreed to
permit the study after its purpose was explained, with assurance of academic
intent that would not harm the factory or its employees.
Of the 1,031 employees in the factory, 600 were chosen to receive
questionnaires. Six large workshops (production departments), each with 100
150 employees performing work of comparable skill, existed in the factory. In
addition, ten departments of support staff such as finance, sales, personnel, and
technology each had between five and 20 employees. Four workshops and four
support departments were selected at random to participate in the study. One
person in each unit distributed questionnaires to all employees in their unit. A
letter accompanying the questionnaire explained its purpose, its voluntary
nature, intent for research purposes only, and the confidentiality of responses.
Each potential respondent received an inexpensive pen to complete the
questionnaire because most employees, especially blue-collar ones, did not have
ready access to writing instruments. Pens were distributed as a means to
increase the response rate by providing a writing instrument and serving as a
small inducement to participate.
Respondents were instructed to return completed responses to a specific
secretary affiliated with the factorys training school and, as such, not in the
organizational hierarchy. At two weekly intervals, the person in each
department who distributed the questionnaires reminded all potential
respondents to complete and return their copy if they had not already done so.
Of the 600 questionnaires distributed, 440 completed responses were received, a
response rate of 73.3 percent, which compares favorably with the average of
55.6 percent reported in a study of response rates (Baruch, 1999). The typical
respondent was 35 years old, had 14 years tenure in the organization, the
equivalent of a high school degree, and earned 495 renmimbi (about US$60) per
month. A total of 56 percent were male. Factory-provided information indicated
that the median age of employees was 35 years, median education was high
school equivalent, and 53 percent were women.
Power distance
and justice
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The questionnaire was translated from the original English version using
the back translation method recommended by Brislin (1980). A team of
bi-lingual colleagues at the Institute of Psychology of the Chinese Academy of
Sciences performed the original translation, led by a coauthor of this paper.
They developed a consensus Chinese-language translation, which was then
translated back to English by a bi-lingual Chinese academic in Singapore and
checked for accuracy by a US academic, both also coauthors of this paper.
Discrepancies were addressed by a three-person team in Singapore, then the
new version was sent back to the team in Beijing for further checks, where the
final version was fixed.
Independent variables
The independent variables tested in this study are power distance, procedural
justice, and distributive justice:
Power distance. A six-item scale to measure power distance was taken
from the research of Dorfman and Howell (1988) who, with Clugston
et al. (1997), provided evidence for the scales reliability and validity.
Items in this scale assess the degree to which inequality in the manageremployee relationship is acceptable. Items include: Employees should
not disagree with management decisions; Managers should seldom
ask for the opinions of employees; and It is frequently necessary for a
manager to use power and authority when dealing with subordinates.
A seven-point response scale ranging from strongly agree to strongly
disagree was used. In a Taiwanese sample (Dorfman and Howell, 1988)
and a subsequent study of Americans (Clugston et al., 1997), the scale
reliabilities were 0.63 and 0.70, respectively. The internal reliability of
the scale in this paper, using Cronbachs alpha, was 0.69. In the studies
previously cited, the Taiwanese and US means were 2.99 and 2.03 on a
five-point scale and standard deviations were 0.80 and 0.40. These
statistics compare with a mean of 3.16 and standard deviation of 1.06 on
a seven-point scale in the present study. We attempted to boost Dorfman
and Howells (1988) modest reliabilities through use of a seven-point
scale to permit greater systematic variability.
Procedural justice. The four-item scale developed by McFarlin and
Sweeney (1992) and used by Sweeney and McFarlin (1993) was
employed. The four items ask how fair or unfair are the procedures used
to determine salary increases, evaluate performance, provide feedback
about performance, and determine who gets promoted. A five-point
response scale ranged from very unfair to very fair. The scale
showed reliabilities of 0.82 and 0.85 in those two studies, respectively,
compared with 0.89 in the present study. Means of 2.97 and 4.24 in the
just-mentioned studies and standard deviations of 0.77 and 1.09
compare with a mean of 2.67 and standard deviation of 0.93 in the
present study.
Power distance
and justice
699
Journal of
Managerial
Psychology
17,8
700
Power distance
and justice
701
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Psychology
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702
Mean
3.16
2.67
3.05
1.77
3.86
3.23
3.91
4.68
SD
1.06 (0.69)
0.93 0.18 (0.79)
1.02 0.33
0.43 (0.89)
0.73 -0.10 -0.04
0.06 (0.87)
1.14 0.22
0.44 -0.17 (0.69)
0.34
1.36 0.04
0.02 -0.04
0.26 -0.31 (0.87)
1.24 0.38
0.30
0.32 -0.01
0.15 -0.09 (0.87)
1.06 0.05
0.20
0.15
0.00
0.25 -0.21 0.15 (0.78)
Table I.
Means, standard
deviations, reliabilities,
and correlations for the Notes: Coefficient alpha reliability estimates are shown on the diagonal. n = 257. a Fivepoint scale; b seven-point scale. r = 0.10, p < 0.05; r = 0.14, p < 0.01; r = 0.19, p < 0.001
studys variables
Outcomes
Negative effectivity
AR2
AT
IQ
OCB
-0.15*
0.02*
0.01
0.00
0.27**
0.07**
0.01
0.00
0.06
0.16**
0.39**
0.25**
0.30**
0.20**
0.15*
0.23**
0.11
0.06
-0.12
0.02**
0.00
0.19**
0.09
0.06**
PD x PJ
PD x DJ
PJ x DJ
AR2
0.23**
-0.17*
0.06
0.04**
-0.02
-0.25**
0.01
0.07**
-0.19*
0.23**
-0.07
0.04**
0.28**
-0.24**
-0.12
0.06**
F
Total R2
n
16.33**
0.32
257
15.10**
0.30
257
5.31**
0.13
257
4.81**
0.12
257
Table II.
Results of analysis
using hierarchical
regression
JS
Power distance
and justice
Job Satisfaction
703
PJ
DJ
Affective Trust
DJ
Intent to Q uit
High PD
Low PD
PJ
DJ
PJ
DJ
Figure 1.
Power distance as a
moderator of the
relationships of
procedural justice and
distributive justice with
job satisfaction, affective
trust, intent to quit, and
organizational
citizenship behavior
Journal of
Managerial
Psychology
17,8
704
than those lower. Higher power distance relates with procedural justice while
lower power distance relates with distributive justice. For those higher in
power distance, increases in procedural justice predict increased job
satisfaction and organizational citizenship behavior and decreased intent to
quit. For those lower in power distance, increases in distributive justice predict
increased job satisfaction and OCB and decreased intent to quit. As indicated
by its absence from Figure 1, the higher power distance interaction with
procedural justice does not predict affective trust. However, the low power
distance interaction with distributive justice in predicting affective trust is
evident. Interactions of procedural with distributive justice, frequently
observed in previous studies, are absent here.
H I postulated that a stronger relationship of procedural justice with positive
outcomes would be found among those higher in power distance. H2 predicted
that a stronger relationship of distributive justice with positive outcomes
would be found among those lower in power distance. Both predictions
received support.
Discussion
In the interactive effects tested in this study, power distance moderated the
associations of justice perceptions with employee outcomes in the predicted
directions. A theory of authority-member relations in groups (Tyler, 1989;
Tyler et al., 1998), served as the basis for the hypotheses. This theory connects
the perceived legitimacy of authority-group member relations to assessments
of justice. Tyler et al. (1995) extended this model by identifying power distance
as an individual difference construct expected to predict attitudes toward
authority, especially as it guides those lower in power distance to connect
leader legitimacy with procedural fairness. Adapted to justice-employee
outcome relations, these notions led us to argue that those lower in power
distance develop strong relationships with authorities, obviating worries about
procedural fairness while leaving expectations of distributive justice more
tenuous. Those higher in power distance, on the other hand, have more distant
relationships with superiors, making procedural justice an important concern
while reducing expectations of distributive justice.
The study assumes that the main constructs are etic, that is, generalizable
across cultures. With the exception of OCB (Farh et al., 1997), this assumption
has not been validated in Chinese samples. However, most of the scales showed
good reliabilities, the means and standard deviations compared reasonably
well with samples of mainly US employees, the questionnaire was
backtranslated by Chinese bi-linguals, and the results fit comprehensibly with
previous findings, all of which supports the constructs as etic. Further, recent
studies using samples from Hong Kong, Taiwan, Singapore, and China have
found justice constructs effective in predicting outcomes (e.g. Lam et al., 2002;
Aryee and Chay, 2001; Lee and Farh, 1999). In addition, the main tenets of the
relational model of authority in groups echo the concept of guanxi, which is a
key feature of Chinese relationships (Yeung and Tung, 1996). Guanxi translates
Power distance
and justice
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Psychology
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the group values model and by scholars characterizing Chinese social life
indicate the value of testing these theories in additional samples of Chinese
employees.
If the results of this study hold up in future research, practical ramifications
include the need to attend to power distance in predicting procedural and
distributive justice relations with important employee outcomes. Procedural
concerns predict job satisfaction, intent to quit, and OCB among those higher in
power distance; distributive concerns predict all four outcome variables among
those lower in power distance. The results also reinforce the value of leaders
and subordinates forging strong working relationships and suggest that efforts
to reduce perceptions of injustice should contribute to more effective
organizational relations. Finally, comparative knowledge of Western and
Chinese patterns of organizational life guides understanding of multi-cultural
interactions that are increasingly common within existing organizations and in
cross-border interorganizational relations.
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Alexander, S. and Ruderman, M. (1987). The role of procedural and distributive justice in
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Blau, P.M. (1964), Exchange and Power in Social Life, Wiley, New York, NY.
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Sage, Thousand Oaks, CA.
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