Firms Reap what they Sow: The Effects of Shared Values and Perceived Organizational Justice on Customers’ Evaluations of Complaint Handling

2003 ◽  
Vol 67 (1) ◽  
pp. 46-62 ◽  
Author(s):  
James G. Maxham ◽  
Richard G. Netemeyer

Employing elements of organizational theory and service recovery research, the authors examine how employees’ perceptions of shared values and organizational justice can stimulate customer-directed extra-role behaviors when handling complaints. They also investigate how these extra-role behaviors affect customers’ perceptions of justice, satisfaction, word of mouth, and purchase intent. The authors capture and match employee and customer perceptions regarding the relevant constructs following a complaint and recovery experience. The results indicate that employees’ perceptions of shared values and organizational justice affect customer-directed extra-role behaviors. Furthermore, the authors find that extra-role behaviors have significant effects on customers’ perceptions of justice and that these behaviors mediate the effects of shared values and organizational justice on customer justice perceptions. Their study reveals that customer ratings of justice affect the customer outcomes of satisfaction with recovery, overall firm satisfaction, purchase intent, and word of mouth. Finally, the authors show that customers’ perceptions of justice mediate the effects that extra-role behaviors have on customer outcomes.

2019 ◽  
Vol 22 (4) ◽  
pp. 421-439 ◽  
Author(s):  
Jens Hogreve ◽  
Nicola Bilstein ◽  
Kathrin Hoerner

Increasingly, customers use social media to voice complaints, making those comments visible to a wide range of uninvolved, virtually present others (VPOs). Many companies seek to shift their complaint-handling efforts away from public online platforms and toward private interactions. However, this approach might not be optimal due to the importance of transparency in social media recovery and its impact on VPOs. Using multiple experiments and building on signaling theory, vicarious learning, and trust repair mechanisms, this study reveals that service recovery transparency acts as an important signal of quality, eliciting trust, and improving VPOs’ word-of-mouth (WOM) and purchase intentions. However, service recovery transparency forms a signal of poor quality when the service recovery is unsuccessful, resulting in negative implications for VPOs’ WOM and purchase intentions. Conditional transparency provides transparency about selected aspects of the service recovery (i.e., the process or result), enabling companies to exploit the positive aspects of transparency and evoke more favorable VPO intentions than would arise with complete opaqueness. Such efforts are necessary because even high brand equity firms suffer when failing to provide recovery transparency.


2017 ◽  
Vol 42 (5) ◽  
pp. 630-656 ◽  
Author(s):  
Irina Cojuharenco ◽  
Tatiana Marques ◽  
David Patient

A salient and underresearched aspect of un/fair treatment in organizations can be the source of justice, in terms of a specific justice agent. We propose a model of agent bias to describe how and when characteristics of the agent enacting justice are important to justice reasoning. The agent bias is defined as the effect on overall event justice perceptions of specific agent characteristics, over and above the effect via distributive, procedural, and interactional justice. For justice recipients to focus on agent characteristics rather than on the event being evaluated in terms of fairness is an unexplored bias in justice judgments. Agent warmth, competence, and past justice track record (entity justice) are identified as agent characteristics that influence justice judgments. Agent characteristics can influence overall event justice perceptions positively or negatively, depending on the ambiguity in terms of justice of the event and on its expectedness from a particular justice agent. Finally, we propose that agent bias is stronger when justice recipients use intuitive versus analytic information processing of event information. Our model of agent bias has important theoretical implications for theories of organizational justice and for other literatures, as well as important practical implications for organizations and managers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deepu Kurian ◽  
Fredrick M. Nafukho

PurposeThe primary purpose of this study was to determine the relationship between a positive style of leadership, specifically authentic leadership, and organizational justice perceptions of employees' in the hotel industry. The following research questions guided the study: What relationship existed between hotel employees' perception toward authentic leadership and organizational justice? What relationship existed between hotel employees' perception toward authentic leadership and distributive justice, procedural justice, interactional justice and informational justice dimensions? What relationship existed among hotel employees' perception toward organizational justice, authentic leadership and their demographic background?.Design/methodology/approachThe study approached the research questions from a quantitative, non-experimental research perspective utilizing a cross-sectional survey and descriptive correlational design, which describes the relationship or association between two or more variables in the study which are authentic leadership and organizational justice.FindingsThe results indicate that authentic leadership has a strong relationship with hotel employees' organizational justice perceptions, and authentic leadership predicted the employees' perceptions of organizational justice. Authentic leadership is a relative new leadership approach rooted in positive psychology emphasizing on the ethical and moral aspects of leadership, and the results of the study found that when employees perceive their leaders to follow the authentic leadership paradigm, they also perceive high levels of organizational justice. Authentic leadership has stronger relationships with informational and interpersonal dimensions of justice which implies that authentic leaders are strategic in their interactions with their employees. The results also imply that when employees perceive justice in terms of procedures and outcomes, they believe that organizations determine those more than their supervisors.Research limitations/implicationsThe differences in the strengths of relationship between authentic leadership and structural forms of justice (distributive and procedural), and authentic leadership and interactional forms of justice (informational and interpersonal), have implications for both justice and leadership theories. The results suggest that authentic leader behaviors create a fair climate – an interpersonally and informationally fair climate which promotes all forms of justice perceptions in individual followers. However, it needs to be further researched whether leaders with high interpersonal skills and information-sharing abilities showing consideration and respect to employees may result in higher levels of organizational justice perceptions. Thus, further research is needed to determine the relationship of authentic leadership and each of the organizational justice (distributive, procedural, informational and interpersonal) dimensions, which may provide more insights as to whether leader behavior contains element of justice itself.Practical implicationsThe findings showcase the need for organizations in the hotel and hospitality industry to establish programs that focus on leadership practices which improve employees' perceptions of organizational justice and, in turn, lead to positive organizational outcomes including reducing the considerable costs of employee turnover. It is also important that employees are aware of the policies and procedures and have a perception that they can connect and communicate to their supervisors and managers.Social implicationsThis study falls into the larger conversation of social justice and how an organization's leadership can be a strong associate for social justice movements by supporting equity within the organization.Originality/valueThe study integrates leadership and justice theories in a hotel context. The results of this study may motivate hospitality/ hotel leaders to include authentic leadership development as an actionable strategy to bolster fairness and mitigate some of the negative features of the industry.


2021 ◽  
Vol 101 (5) ◽  
pp. 553-574
Author(s):  
Eric G. Lambert ◽  
Emily Berthelot ◽  
Weston Morrow ◽  
Lauren Block ◽  
Nancy Hogan

Research examining the effect of organizational justice on the correctional environment is typically limited to its consequences on various outcomes. Absent from this body of literature is how perceptions of organizational justice are formed among correctional staff. Filling this void and using data from a Midwestern correctional facility, the current study examines the impact of instrumental communication, integration, formalization, and input into decision-making on the distributive and procedural justice perceptions of correctional staff. With the exception of integration, all organizational structure variables were significantly related to both forms of organizational justice. These findings offer correctional administrators a low cost and practical solution for enhancing organizational justice through organizational structure.


Author(s):  
Clemens Hutzinger ◽  
Wolfgang Weitzl

In pursuit of better purchasing decisions (e.g., choosing the right restaurant or hotel), prospective customers increasingly turn to social media, such as Facebook, to source information about new products, services and brands. On Facebook, a brand’s former, current and potential customers are not only exposed to marketer-created brand postings, but also to other customers’ subjective evaluations, personal thoughts and feelings regarding their consumption experiences (Hennig-Thurau et al., 2010). Research has shown that consumers strive for multifaceted goals when sharing consumption-related postings online. For instance, some satisfied customers want to help the company by posting favorable statements about a positive brand experiences, known as positive electronic word of mouth or PeWOM (Hennig-Thurau et al., 2004), while others want to help their fellow shoppers by giving a neutral description of a regular brand experience (ReWOM). However, many dissatisfied customers also use Facebook brand-pages as a public platform to express their unfavorable thoughts and negative emotions (e.g., anger) after a service failure by means of an online complaint or negative electronic word of mouth (NeWOM; Ward & Ostrom, 2006; Weitzl et al., 2018). Consumers that are directly affected by the service failure and involved in the recovery process are referred to as complainants. The reasons why customers spread NeWOM are diverse. They range from venting (i.e., lessening his/her frustration and reduce anger), via revenge (i.e., intentionally sabotaging and harming the company; Grégoire et al., 2009), warning others (Willemsen et al., 2011), to advice seeking (to acquire new skills/information to better use and/or repair the product; Willemsen et al, 2013). Earlier research demonstrates that online complaints can have strong and diverse detrimental effects, particularly on a brand’s potential customers (so-called online complaint bystanders), including unfavorable attitudes and an increased willingness to criticize the involved brand to others (e.g., Chevalier & Mayzlin, 2006; Sen & Lerman, 2007). However, evidence also exists that ‘webcare’, which is company’s online complaint handling response to a public complaint can repair negative reactions of these bystanders to some extent (e.g., Weitzl & Hutzinger, 2017). It remains, nevertheless, unclear how far such positive reactions can be stimulated with webcare among NeWOM bystanders.


2014 ◽  
Vol 55 (3) ◽  
pp. 16-20
Author(s):  
Stefan Huf

Mitarbeiter bewerten organisationsinterne Ungleichheit hinsichtlich ihrer Angemessenheit. Die Beurteilung des Ausmaßes der realisierten organisationalen Gerechtigkeit wiederum beeinflusst maßgeblich sowohl die Einstellungen der Mitarbeiter als auch ihr konkretes Arbeitsverhalten. Der Beitrag zeigt daher auf, wie organisationale Gerechtigkeit sozialpsychologisch gefasst wird, charakterisiert distributive, prozedurale und interaktionale Gerechtigkeit als Dimensionen organisationaler Gerechtigkeit und zeigt beispielhaft die Konsequenzen für drei besonders gerechtigkeitssensitive Handlungsfelder des Personalmanagements (Personalauswahl, Entgeltgestaltung und Talentmanagement) auf. Organizational Justice is concerned with people’s perceptions in their employment relationship. Justice perceptions have been shown to have effects on people’s attitudes, motivation and performance. This paper gives an overview of the dimensions of organizational justice (distributive, procedural and interactional justice) and demonstrates the consequences for HRM activities like hiring, reward systems and talent management. Keywords: talentmanagement, potenzialkriterien, gerechtigkeitsdimensionen, entgeltdifferenzierung


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