Justice or Just between Us? Empirical Evidence of the Trade-Off between Procedural and Interactional Justice in Workplace Dispute Resolution

40 Pages Posted: 13 Jul 2011 Last revised: 12 Dec 2012

Date Written: December 12, 2012

Abstract

This paper draws on unique data from a single, geographically-expansive, US firm with well over 100,000 employees in over 1,000 locations to examine the relationship between an employer’s implementation of a typical dispute resolution system (DRS) and organizational justice, perceived compliance with the law, and organizational commitment. Holding all time-constant, location-level variables in place, we find that introduction of the DRS is associated with elevated perceptions of interactional justice but diminished perceptions of procedural justice. We also find no discernible effect on organizational commitment, but a significant boost to perceived legal compliance by the company. The authors draw upon these findings to offer a “differential-effects” model for conceptualizing the relationship among organizational justice, perceived legal compliance, and implementation of dispute resolution mechanisms.

Keywords: arbitration, mandatory arbitration, voice, exit, loyalty, procedural justice, interactive justice, interactional justice, substantive justice, justice, dispute resolution, ADR, negotiation, employment, conflict, workplace, natural experiment, panel, longitudinal, empirical, organizational justice

JEL Classification: K10, K19, K30, K39

Suggested Citation

Eigen, Zev J. and Litwin, Adam Seth, Justice or Just between Us? Empirical Evidence of the Trade-Off between Procedural and Interactional Justice in Workplace Dispute Resolution (December 12, 2012). Industrial and Labor Relations Review, Forthcoming, 7th Annual Conference on Empirical Legal Studies Paper, Northwestern Law & Econ Research Paper No. 11-21, Available at SSRN: https://ssrn.com/abstract=1884421 or http://dx.doi.org/10.2139/ssrn.1884421

Zev J. Eigen (Contact Author)

Syndio Solutions ( email )

255 S. King St
9th Floor
Seattle, WA 98104
United States

HOME PAGE: http://www.synd.io

Adam Seth Litwin

Cornell University ( email )

ILR School
363 Ives Hall
Ithaca, NY 14853-3901
United States
(607) 255-7326 (Phone)

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