A Study on the Effect of Pay Communication on Organizational Citizenship Behavior: Mediating Effect of Organizational Justice

Abstract

Many companies face an increasingly complex competitive market environment, which requires employees to focus not only on their own work but also on spontaneous organizational citizenship behaviors. To address this phenomenon, based on equity theory and social exchange theory, this paper examines the relationship between pay communication practices and organizational citizenship behaviors and incorporates the mediating role of organizational justice. SPSS and SMART-PLS were also used to analyse 342employee questionnaires from four Chinese state-owned insurance companies. The results showed that pay communication has a positive effect on organizational justice, and organizational justice has a positive effect on organizational citizenship behavior. Furthermore, organizational justice plays a partly mediating role in the relationship between pay communication and organizational citizenship behavior. The practical implication of this paper is that unconditional on pay level, organizations can improve OCB by rendering the communication relevant to pay decisions transparent.

[Keywords] Pay Communication, Organizational Justice, Organizational Citizenship Behavior(OCB), Social Exchange Theory, Equity Theory