Perceived Organisational Justice and Employees’ Organisational Identification Among Microfinance Banks in Niger State, Nigeria

Abstract

In an era of increased regulatory scrutiny and aggressive competition from financial-technology alternatives, microfinance banks in Niger State continue to face existential threats even from internal organisational dysfunction emanating mainly from weak employees’ organisational identification. Organisational identification reflects a deep cognitive and emotional connection that integrates employees’ self-concepts with organisational identity. Drawing upon social exchange theory which postulates that employees evaluate the quality of their exchange relationships with organisation base on cost-benefit analysis, this study examines the relationship between the perceived organisational justice and employees’ organisational identification among microfinance banks in Niger State, Nigeria. The study relied on cross-sectional survey design using quantitative approach in which data were collected from 124 employees with the aid of structured copies of questionnaires. The employees were selected through stratified convenience sampling technique based on their willingness to participate in the survey. Correlation analysis was used to analyse data and the results revealed a strong positive and significant relationship between both perceived distributive justice and interactional justice with employees’ organisational identification (r = 0.871 and 0.784). Procedural justice was found to have moderate positive and significant relationship with employees’ organisational identification (r = 0.492). These findings established that interpersonal treatment and equitable reward systems play critical roles in fostering employees’ psychological attachment to the organisation. It was recommended that management of the microfinance banks in Niger State should adopt a multifaceted justice strategy by ensuring equitable pay, adopting transparent and fair processes and advocating for fair and equal treatment of employees by supervisors.