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Fairness and job satisfaction of Japanese multinationals in Asia

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    Abstract

    We explored how fairness perceptions of HR practices affect job satisfaction among Asian managers of MNC subsidiaries, controlling age, gender, job tenure, previous work experiences, and management positions. Our fairness study focus described the effect of procedural justice and that of the transparency, which we have added as a new justice construct that is an organizational level of informational justice. We applied a performance evaluation system as an HR practice implemented over the MNC subsidiaries. Our research participants comprised of 903 Asian managers who worked for a leading Japanese multinational strategically expanding retail business markets in Asian locations: Japan, China, Hong Kong, Malaysia, and Thailand. Our key results revealed that both procedural and transparent fairness perceptions of the HR practice significantly influenced job satisfaction of Asian managers as a whole group. Each regional group also mostly exhibited a strong connection between their fairness perceptions of both procedures and transparency, and their job satisfaction. Finally, we discussed the implication of this study.

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    File URL: http://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2012_05.pdf
    File Function: First version, 2012
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    Bibliographic Info

    Paper provided by Research Institute, International University of Japan in its series Working Papers with number EMS_2012_05.

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    Length: 49 pages
    Date of creation: Jul 2012
    Date of revision:
    Handle: RePEc:iuj:wpaper:ems_2012_05

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    Keywords: Procedural justice; Transparency; Job satisfaction; HR practices; Asian managers; Japanese MNCs;

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    1. Kwok Leung & Peter B Smith & Zhongming Wang & Haifa Sun, 1996. "Job Satisfaction in Joint Venture Hotels in China: An Organizational Justice Analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 27(4), pages 947-962, December.
    2. Beamish, Paul W. & Inkpen, Andrew C., 1998. "Japanese firms and the decline of the Japanese expatriate," Journal of World Business, Elsevier, vol. 33(1), pages 35-50.
    3. Kwok Leung & Peter B Smith & Zhongming Wang & Haifa Sun, 1996. "Job Satisfaction in Joint Venture Hotels in China: An Organizational Justice Analysis," Journal of International Business Studies, Palgrave Macmillan, vol. 27(5), pages 947-962, December.
    4. Shapiro, Debra L. & Buttner, E. Holly & Barry, Bruce, 1994. "Explanations: What Factors Enhance Their Perceived Adequacy?," Organizational Behavior and Human Decision Processes, Elsevier, vol. 58(3), pages 346-368, June.
    5. I. Jawahar, 2007. "The Influence of Perceptions of Fairness on Performance Appraisal Reactions," Journal of Labor Research, Springer, vol. 28(4), pages 735-754, September.
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