Organizational justice in Chinese banks: understanding the variable influence of guanxi on perceptions of fairness in performance appraisal

Abstract

Drawing on survey (n = 308) and interview (n = 22) data from three different types of banks in China, we found significant differences in perceptions of organizational justice in performance appraisal processes. The state-owned bank was perceived as significantly less fair in its appraisal procedures than both its city-commercial and foreign-owned counterparts. These differences could be explained, in part, by variations in the influence of guanxi on supervisor decision-making. This, in turn, was linked to differences between the banks in their organizational objectives, as well as to intra-organizational differences at the departmental level. These findings question the common assumption that national culture variables, such as guanxi, are extremely stable and have universal explanatory value in all organizational contexts.

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