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

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  • Fan Gu
  • Jane Nolan
  • Chris Rowley

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.

Suggested Citation

  • Fan Gu & Jane Nolan & Chris Rowley, 2020. "Organizational justice in Chinese banks: understanding the variable influence of guanxi on perceptions of fairness in performance appraisal," Asia Pacific Business Review, Taylor & Francis Journals, vol. 26(2), pages 169-189, March.
    • Handle: RePEc:taf:apbizr:v:26:y:2020:i:2:p:169-189
    DOI: 10.1080/13602381.2019.1700622
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    Cited by:

    1. Suying Yang & Yanhui Mao & Tao Liu & Conrad Baldner & Scott Roberts & Shaokai Lu, 2023. "Achieving ambidextrous learning in construction engineering project partnerships: the roles of formal control and Chinese guanxi," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 431-462, February.
    2. Zia Ullah & Naveed Ahmad & Miklas Scholz & Bilal Ahmed & Ilyas Ahmad & Muhammad Usman, 2021. "Perceived Accuracy of Electronic Performance Appraisal Systems: The Case of a Non-for-Profit Organization from an Emerging Economy," Sustainability, MDPI, vol. 13(4), pages 1-16, February.

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