Quality of internal control procedures : antecedents and moderating effect on organisational justice and employee fraud

Purpose – This study aims to bring together theoretical concepts from the organizational justice, internal control and fraud literature to develop two distinct models relating to employee fraud and the quality of internal control procedures (ICP), respectively.

Design/methodology/approach – Survey data from 64 Australian firms were used to develop the two models. The first model was tested using a logistic regression analysis, and the second model was tested using a multiple regression analysis.

Findings – The first model reveals that the quality of ICP has a moderating effect on the relationship between perceptions of organizational justice and employee fraud. The second model indicates that ICP quality is significantly and positively related to three key organizational factors: the corporate ethical environment, the extent of risk management training of staff, and the internal audit (IA) activity level.

Practical implications – Risk management strategies relating to employee fraud will need to pay greater attention to organizational factors that affect both perceptions of justice at the workplace and ICP quality, including fostering a more ethical and equitable work environment, increasing IA activities and staff training in risk management.

Originality/value – Using the fraud triangle framework, this study extends previous literature by providing empirical evidence on the role of organizational justice and ICP regarding employee fraud.

Inclusion, organisational justice and employee well-being

Purpose: The purpose of this paper is to examine the relationship between employee perceived well-being and the four dimensions of organisational justice, namely, procedural, distributive, interpersonal and informational justice, and how dimensions of organisational justice affect employee well-being in the Australian tourism industry. Design/methodology/approach: The sample is selected from employees who work in the tourism industry in Australia, and the survey was conducted online (n=121). Factor analysis is used to identify key items related to perceived organisational justice, followed by multiple regression analysis to assess the magnitude and strength of impacts of different dimensions of organisational justice on employee well-being. Findings: The results support the established view that organisational justice is associated with employee well-being. Specifically, informational justice has the strongest influence on tourism employee well-being, followed by procedural justice, interpersonal justice and distributive justice. Research limitations/implications: The authors acknowledge key limitations in the study such as a relatively small sample size and gender imbalance in the sample. Practical implications: The authors provide strategies for managers to increase levels of organisational justice in the tourism sector such as workgroup interactions, a consultation process, team culture and social support. Originality/value: This study builds on limited literature in the area of inclusion and organisational justice in tourism organisations. The study provides a new path to effective organisational management within the context of a diverse workforce, adding to the current debate on which dimensions of organisational justice contribute to improving employee well-being.

Justice in the workplace : the centrality of social versus judgmental predictors of performance varies by gender

Men and women are said to perceive justice differently, with women proposed to  be more concerned with relational issues and men focused more on material issues. In this study, the potential for differential effects of justice on performance by gender was analyzed across the four contemporary types of justice.  Respondents were 265 male and 113 female occupationally diverse employees in a single organization. The results show significant differences in how men and women respond to the four justice types with only one – informational justice – acting similarly by gender. The differential relationships between each of the justice types and the outcomes by gender highlight the utility of the four factor approach to measuring organizational justice. Women were more interested in maintaining social harmony than men. The results appear to strongly support the use of the justice judgment model over the group-value model as a means of explaining the gender differences. Implications for management include the importance of informational justice both generally and within the performance appraisal process.

Using job strain and psychological contract theories to predict employee wellbeing in a reformed public sector agency

This study investigates the Issues that contribute to employee wellbeing in a public sector agency having undergone substantial reform The research is based on a model that is initially demand-oriented, and is expanded to incorporate psychological contract breach and organisational justice. Hierarchical regression analyses were conducted on the 1,010 completed surveys The results confirm the value of the Job strain model (JSM) and that the inclusion of breach and fairness were worthwhile extensions of the JSM Future research may wish to extend this approach and incorporate more of the social aspects of the work situation m studies of employee wellbeing.

Key behavioural and cognitive employee outcomes : a social exchange model

This paper serves to integrate social exchange with organisational justice and performance theory. Social exchange relationships are represented by employees’ perceptions of workplace inequity and evaluated using justice rules. Employees are expected to have in-role and extra-role behavioural responses and cognitive responses to inequity. It is theorised that behavioural and cognitive responses are moderated by the employee’s perceptions of organisational justice. Much employee performance, commitment, engagement, retention and turnover may be explained by this comprehensive model.

A step toward a common measure of organizational fairness

The paper examines dimensions of organizational justice construct in a public sector context, utilizing an organizational justice measure developed and validated by Colquitt (2001). The present study substantiates the existing claims about the independence of interactional justice and the division of interactional justice into interpersonal and informational justice. The present investigation also contributes to the justice literature by providing evidence of a new factor, which is called procedural voice justice to reflect the possible association with the concept of voice effect. Although voice has been examined extensively in the justice research as an antecedent of procedural justice, little is known about if and how voice might integrate into procedural justice construct. The study proposes that future justice research further investigate dimensionality of organisational justice and aspire to developing a common measure of the justice construct.

Improving employee outcomes in the public sector

Purpose – The purpose of this paper is to examine the efficacy of the demand-control-support model, augmented with employee perceptions of organisational justice and degree of met expectations.

Design/methodology/approach – Data were collected from 128 public sector employees working in a large state police force operating under many of the elements of new public management. Hierarchical multiple regression analyses were conducted using four indicators of occupational strain: employee wellbeing, job satisfaction, organisational commitment and intent to quit.

Findings – The results of this study suggest that the demand-control-support model has great utility in identifying those aspects of the work environment associated with employee strain. Job control and social support at work in particular were the most consistent predictors. In contrast, the expectation and justice variables failed to make significant contributions to the model in all but one analysis providing no support for the “injustice as stressor” perspective.

Research limitations/implications – Although a cross-sectional design was utilized, these results highlight the value of applying the parsimonious demand-control-support model to a wider set of outcomes, especially in a public sector environment.

Practical implications – The results emphasize the importance of the relatively neglected “softer” work characteristics support and control. In order to combat the ill-effects of organisational reforms and prompt a shift towards the public value approach, managers operating under elements of new public management should ensure that adequate social support at work is available and that employee control is commensurate with their demands.

Originality/value – This study examined an augmented demand-control-support model and identified that whilst perceptions of justice can influence employee attitudes and wellbeing, the demand, control, and support variables remain the most influential factors with regard to public sector employee attitudes and wellbeing.

Perceptions of fairness in the psychological contracts of allied health professionals

Purpose-The purpose of this paper is to investigate the relationships between components of the psychological contract, organisational justice, and negative affectivity (NA), with key employee outcomes (i.e. organisational commitment, job satisfaction, depression, and psychological distress) among allied health professionals. Design/methodology/approach-In total, 134 (response rate of 46 per cent) Australian allied health professional completed a questionnaire. Findings-Multiple regressions revealed that higher NA was associated with lower organisational commitment, lower job satisfaction, and higher levels of depression. The psychological contract variable, breach, was associated with depression. Informational justice was associated with organisational commitment. Distributive justice was associated with job satisfaction. Research limitations/implications-This research is limited by its cross-sectional design and that the data were self-reported. The results obtained suggest the potential utility of collecting longitudinal data to replicate and extend the results. Practical implications-While NA may be beyond management control, it may be ameliorated by attention to improving communication of management decisions and by sensitivity to the elements implicit in psychological contracts. The negative consequences of contract breach may be offset by informational and distributive justice. Originality/value-This study is one of the first to examine multiple measures of the psychological contract in addition to organisational justice and NA. Further, this study adds to the literature for allied health professionals, where little is known about factors contributing to their turnover.