Int. Journal of Business Science and Applied Management, Volume 15, Issue 1, 2020

Demonstrating the Impact of Participative Decision Making,

Distributive Justice Perception and Growth Opportunities

on Favorable and Unfavorable Employee Outcomes:

Mediating Effect of Workplace Inclusion in Indian HEIs

Aneesya Panicker

Institute of Business Management, GLA University,

Mathura, U.P., India

Email: aneesya.panicker@gla.ac.in; panickeraneesya@gmail.com

Avnish Sharma

Institute of Business Management, GLA University

Mathura, U.P., India.

Email: avnish.sharma@gla.ac.in; avnish.gla@gmail.com

Abstract

Changing trends in the global economy have reshaped industrial relations due to transformation in the

workforce composition, resulting in compulsion on companies to audit their organizational climate, HR

practices, process, system, and style of managing this diversified workforce. The rationale behind this

study is to assess the effect of participative decision making, distributive justice perception and growth

opportunities on favorable and unfavorable employee outcomes concerning Indian HEI. Currently,

India is one of the largest and fastest growing economies in the world, resulting in an increasing call to

examine the pulse of workplace diversity and inclusion practices and policies, including those in India.

A self-administered questionnaire was used with a non-probability sampling technique for data

collection from 383 employees working in the HEIs situated in NCR, India. The proposed conceptual

model was tested through correlation and regression analysis. Research results reflect significant

relationships between participative decision making, distributive justice perception and growth

opportunities and employee outcomes.

This study provides guidelines for enhancing workplace inclusion and organizational identification on

the one hand, and reducing employee turnover on the other hand, through supportive workplace

inclusion measures.

Keywords: workplace inclusion, participative decision making, distributive justice perception, growth

opportunities, organizational identification, turnover intentions

Aneesya Panicker and Avnish Sharma

1. INTRODUCTION

To be competitive in the 21st century, an organization has to bear the flag of ‘Being global.'

Organizations cannot even think of expanding their business without expanding the employee base.

Many researchers have focused on central interpretations of diversity on the boards and emphasised the

advantages of having wide representation of diversified stakeholders (Brown, 2002; Cornforth, 2003;

Jayne & Dipboye, 2004; Litvin, 2006), while other researchers emphasised more the incorporation of,

and leveraging the enhanced effectiveness of, a diversified workplace. Now some researchers are

moving beyond diversity to scrutinize the concept of inclusion (Bourne, 2009; Fredette, 2012) and that

is where our research paper picks up. Inclusion is a breakthrough of potent transformation of

organizational culture towards a culture that fosters and values the diverse traits of every individual in

the organization’s success and competitive advantage. It also offers an alternative to the way diversity

is viewed as an end in itself or something that has to be managed or endured, but this assertion has not

been widely examined empirically (Bourne, 2009). Moreover, inclusion in the workplace is different

from workplace diversity. On one hand diversity in the workplace refers to "situations that germinate

when employees differ in terms of age, gender, ethnicity, education, etc." (Mor Barak, 2005). On the

other hand, workplace inclusion implies evaporating the cloud of discriminatory practices and fostering

a conducive environment for every employee through fair and equitable opportunities for participation

and advancement with the growth of the organization. However, even well-intentioned organizations

ignore inclusion as a significant dimension of managing workplace diversity, which often gives

disheartening organizational outcomes. Thus, it is paramount for organizations to understand the

synergetic effects of diversity and inclusion in the workplace.

Many researchers have argued that workplace inclusion is a significant predictor of favourable

organizational outcomes, namely: work satisfaction, organizational commitment, identification and

work performance (Deborah, et al., 2000; Allen et al., 2007, Ozgener, 2008; Wikina, 2011; Srikanth et

al. 2016; Knippenberg and Mell 2016; Guillaume et al. 2017). The majority of studies in the field of

workplace diversity and inclusion have been carried out in the US context. Few studies have explored

what and how employees perceive workplace inclusion, and what its probable outcomes are (Van et al.,

2012). Hence, generalizing these results in Asian countries, where there exist significant differences in

socio-cultural settings, is not apt (Magoshi et al., 2009). As an Asian country, India, with its diverse

culture, customs, traditions, and language, can be an opulent region for studying the issues related to

workplace inclusion. India is selected as the background for the present study for a multiplicity of

reasons. Firstly, the social context of India is significantly different (Sowell, 2002; Budhwar, 2009).

Secondly, according to the World Bank, the Indian economy has been witnessing rapid development

since 1991, resulting in entry to the Indian market by many foreign collaborators (Budhwar and Varma,

2010). As a result of this global market trend organizations are supposed to unfold the peculiarity and

unconventional behavior of diversified workforce and embrace diversity-related issues thereby

removing organizational constraints (Woodard and Saini, 2006).

The further environment in which education institutions operate is different from the business

organization because of its unique nature. Diversity exists in all the three categories of employees,

comprising staff, faculty, and students. Thus, it becomes imperative to examine whether inclusiveness

is there at the different levels (Milem, 2003). In addition, the present study extends the research work

of Muchiri and Ayoko (2013) by incorporating workplace inclusion as a mediating variable. It is

accentuated in the literature that diversity in the workplace requires employee identification and

commitment. Likewise, a worker's feeling of acceptance and a diversity climate has been found to

influence the work life quality (Glisson & James, 2002; Hwang & Hopkins, 2012). In this line, the

present research is in pursuit of three main objectives, firstly to inspect employees’ (academicians')

perception regarding participative decision making, distributive justice perception and growth

opportunities on a favorable outcome (organizational identification), secondly on an unfavorable

organizational outcome (turnover intention), and finally to examine the mediating effect of workplace

inclusion on these relationships with a special focus on HEIs.

2. THEORETICAL FOUNDATION AND RESEARCH HYPOTHESES

The conceptual framework of the present study is based on social identity theory, proposed by

Tajfel (1982). The theory makes a connection between the identity of individuals and social structure.

People are likely to be part of those groups with which they tend to identify themselves based on social

categories such as gender, ethnicity, and race (Tajfel,1982). They intend to interact with those who are

identical to them (Tajfel,1978, 1982; Tajfel & Turner, 1986; Turner, 1987). Social identity theory

establishes that individuals tend to improve and maintain a positive social identity with the group they

Int. Journal of Business Science and Applied Management / Business-and-Management.org

belong to (Aberson, Healy & Romero, 2000; Ashforth & Mael, 1989; Tajfel & Turner, 1985). The most

vital component of employees’ social identity is their identification with the organization they belong

to, termed organizational identification (OI) (Hogg & Terry, 2000). OI refers to the feeling of oneness

or belongingness of employees towards their organization where they tend to define themselves as the

organization they belong to (Mael & Ashforth, 1992). When individuals form a positive justice

perception towards their organization, they tend to make a holistic judgement about their organization

(Greenberg, 2001). In fact when asked, individuals are able to differentiate among the reasons for

justice perception which is reflected in their behavioral outcomes is based on the overall fairness

experience (Lind, 2001).

2.1 Participative decision making (PDM)

In the research literature, participative decision making is interchangeably used as ‘employee

involvement', ‘employee participation', ‘employee engagement' and ‘employee empowerment'. It is

defined as the process of involving employees in decision making and problem-solving mechanisms of

the organization as well as sharing information among them to come up with more creative ideas to

achieve organizational objectives (Wagner, 1994; Scott-Ladd et al., 2006). Participative decision

making is also explained as the ‘process by which employees influence their work settings' (Strauss,

1998). Moreover, the working style of today’s generation expect a new governance approach, that is a

shift from tangible and rigid rules to more flexible, diverse and intangible ways of working (Chen and

Zhou, 2018).

Many research findings have emphasized the relationship between PDM with organizational

performance. It is studied as dependent as well as independent variables, and in the latter case the focus

is on the outcomes of PDM on organizational and employee performance, their level of productivity,

satisfaction, commitment, and identification. These variables are positively related with PDM, which

indicates that it is a useful tool to bring positive outcomes to employees and the organization as a whole.

Organizational identification is considered as a key state of human psychology, projecting the structural

association between individuals and their organization. Mael and Ashforth (1989) defined

organizational identification as that state of mind of individuals where they identify themselves as an

organization, not as a separate identity, feeling oneness and belongingness towards the organization

they are part of. An increased level of employee identification towards their organization lead to the

attainment of organizational goals. In fact individuals prefer to indulge in those activities that are

consistent with their unique identity and organizational identity (Ashforth and Mael, 1989).

Further, in the absence of PDM, there used to be a negative impact on employees’ intention to stay.

An intention refers to the statements describing the specific actions of an individual's interest (Mobley

et al. 1979). Employees' turnover intentions are results of emotional or affective outcomes such as

satisfaction with the job. Emotional attachment of employees predicts their intention to stay or leave

the workplace (Griffeth et al., 2000; Lum et al., 1998). Thus, the following hypotheses can be

formulated to examine its validity-

H1a: Participative decision making is directly related to organizational identification.

H1b: Participative decision making is negatively related to turnover intention.

2.2 Distributive justice perception

Organizational justice perception is defined as the authority system, or process of information

syntheses (Sheppard, B. H., Lewicki, R. J., & Minton, J. W., 1992). This perception leads to the

creation of a climate for an opportunity where the organization reaps benefits by exercising just

occupation practices, interactive assimilation of a diversified workforce and participatory decision-

making (Nishii, L. H., 2010). The study of justice was mostly concerned with distributive justice before

1975 and was primarily derived from Adam's equity theory (1965) to examine fairness. Distributive

justice perception is concerned with the unequal distribution of outcomes at the workplace; hence, it is

anticipated to be mostly related with hatred, perceptual falsification and withdrawal responses (Cohen-

Charash & Spector, 2001). According to equity theory, individuals are more concerned with fairness in

the outcome rather than the level of the outcome. Research findings suggest that employees'

distributive justice perception strongly affects their attitude towards work, leading to job satisfaction,

absenteeism, an intention to quit, organizational commitment, identification and organizational

citizenship behavior (Colquitt, Conlon, Wesson, Porter, & Ng, 2001). Brashear, Manolis, & Brooks,

(2005) conducted a study on two hundred and forty sales employees and found that distributive justice

perception is a direct predictor of employees’ turnover intention. The group-value model postulates that

people usually join a group so as to obtain long-term interpersonal information and to acquire self-

value messages. The strength of the relationship shared by the individual with their group decides the

Aneesya Panicker and Avnish Sharma

intensity of the individual with respect to their group identification (Fuchs S. & Edwards MR. 2012).

This study also hypothesizes that organizational justice perception has a significant positive impact on

organizational identification (Kreiner GE., & Ashforth BE., 2004; Lipponen J, Olkkonen ME, &

Moilanen M., 2004; Tyler TR, Degoey P, & Smith H., 1996). The higher the organizational justice

perception the higher will be the individual's sense of pride and respect towards the organization (Tyler

TR. & Blader SL., 2000). In this line, the following hypotheses are proposed-

H2a: Distributive justice perception is directly related to organizational identification.

H2b: Distributive justice perception is negatively related to turnover intention.

2.3 Growth opportunities

‘ Growth opportunities’ refers to the ‘capability of employees to develop themselves in the

organization with professional as well as new skill sets.’ In return for this opportunity, the employees

exhibit commitment towards the organization. Moreover, ‘growth opportunities' also reflect the

organization's intentions to provide an inclusive environment to the employees by recognizing and

valuing their contribution towards the company (Eisenberger et al., 1986; Shore & Shore, 1995; Wayne

et al., 1997). If organizations contribute towards the career growth of their employees, then they can

reap the benefits of highly committed employees (Ballout 2009). While on the other hand, if employees

perceive that their personal growth in the current organization is lacking, then they will try to find

career opportunities in other organizations (Chang, 1999; Weng & McElroy, 2012). Thus it can be

concluded that ‘growth opportunities' would foster a feeling of commitment among employees, thereby

reducing their intention to quit.

When employees receive growth opportunities within their organization they tend to identify

themselves with the organizational objectives, and gradually build their self-confidence and

organizational development (Weng, Q.X. & Xi, Y.M., 2013). Research findings have found that

employees’ growth opportunities have a significant positive effect on organizational commitment and

identification (Zhou & Yu, 2015), which means, when employees assume that they are being respected

by their organization, this tends to enhance their self-worth and ability to attain better career goals,

resulting in strong recognition with the organization (Zhou & Yu, 2015).

H3a: Growth opportunity is directly related to organizational identification.

H3b: Growth opportunity is negatively related to turnover intention.

2.4 Workplace Inclusion, Organizational identification and Turnover Intentions

Traditionally organizations tend to manage issues related to workforce diversity and inclusion

mostly through inclusive staffing practices (Jackson, 1992; Shore et al., 2009). It is only since the last

decade that inclusion has been considered as a distinct area of study with a recent origin and many

researchers emphasize that the working environment of organizational triggers the individuals to collect

work related information (Weick, K. E., 1979; Mowday, R. T., & Sutton, R. I., 1993; Bilimoria, D., Joy,

S., & Liang, X., 2008). Miller (1998) defined inclusion as “The extent to which diverse individuals are

allowed to participate and are enabled to contribute fully”.

Lirio, Lee, Williams, Haugen, & Kossek (2008) argue that inclusion is a belief that is developed

within the employee through constant efforts of the organization. It is about giving a platform to people

of all groups to stand up with their opinion about organizational practices, appreciating them in such a

way that they develop a sense of collective engagement towards the corporate goal. In fact individuals

are not only expected to be unique in themselves, but a sense of being completely included as well as

feeling important for their organization are also essential (Dehaze, 2018). To fulfill people's pressures

towards the acceptance of diversity, organizations have started incorporating identity into diversity,

thus creating an internal diversity receptive climate (Cole and Salimath, 2013; Curtis, Brianl, Kirk and

Keith, 2017). An organization climate that promotes diversity is positively perceived by the employees,

provided the policies and procedures of the organization are non-discriminatory and supportive,

resulting in a feeling of inclusion (Bhattacharya and Elsbach, 2002; McKay et al., 2007; Kreiner and

Ashforth, 2004).

Giving equal opportunity to present one’s opinion and participate in decision making, appreciating

them and removing obstacles on the path of career advancement by fostering a sense of belongingness,

and exhibiting inclusive behavior such as stimulating and identifying the worth of every employee's

contribution towards the organizational goal (Pelled, L. H., Ledford, G. E., & Mohrman, S. A.,1999)

results in higher identification with the organization (Holvino, E., Ferdman, B. M., & Merrill-Sands, D.

2004) and a reduced intention to quit (Roberson, Q. M. 2006; Mete, M. Sokmen, A. 2019). Thus, the

following hypotheses are proposed-

Int. Journal of Business Science and Applied Management / Business-and-Management.org

H4: Workplace inclusion is positively related to organizational identification.

H5: Workplace inclusion is negatively related to turnover intention.

Research findings indicate certain important antecedents of an inclusive workplace, such as

participative decision making, access to work related information, work security, justice perception and

growth opportunities provided by the organization (Pelled and colleagues, 1999; Locke et al., 1997).

An inclusive work culture used to develop equal opportunity practices tends to facilitate and encourage

fair treatment of employees parallel with respect for individual differences (Janssens & Zanoni, 2007).

An inclusive workplace is likely to be negatively associated with turnover intentions as inclusiveness

can foster identification and psychological closeness with the organization, resulting in people being

less likely to leave the organization (Posthuma, Maertz, & Dworkin, 2007; Maertz & Griffeth, 2004).

So far it is hypothesized that there exists a positive relationship between participative decision making,

distributive justice perception, growth opportunities, workplace inclusion and organizational

identification but a negative relationship with turnover intention. In line with these hypotheses it is

conceivable to test the mediating role of workplace inclusion on the relation between participative

decision making, distributive justice perception, growth opportunities, and organizational identification

and turnover intention. As of now, no previous research has studied this mediating effect. Thus, this

provides the opportunity to examine if there is a full or partial mediation effect of workplace inclusion

on the relationships identified.

On the basis of the above discussion the following hypotheses are framed-

H6a: Workplace inclusion mediates the relationship between participative decision making and

organizational identification.

H6b: Workplace inclusion mediates the relationship between distributive justice perception and

organizational identification.

H6c: Workplace inclusion mediates the relationship between growth opportunities and

organizational identification.

H7a: Workplace inclusion mediates the relationship between participative decision making and

turnover intention.

H7b: Workplace inclusion mediates the relationship between distributive justice perception and

turnover intention.

H7c: Workplace inclusion mediates the relationship between growth opportunities and turnover

intention.

The schematic representation of all the hypotheses is provided in figure 1.

Aneesya Panicker and Avnish Sharma

Figure. 1 Model assessing the impact of antecedents and outcomes of workplace inclusion with

the mediating effect of inclusion

Direct relationship

Indirect relationship

Workplace Inclusion

Participative Decisi

M ki

Distributive Justice

P ti

Growth Opportunities

Turnover Intention

Organizational

Id tifi ti

3. METHODOLOGY

3.1 Design

To administer the research, a questionnaire was constructed consisting of all the individual

variables under study. The research instrument consisted of three sections, comprising items related

with independent variables, the mediating variable and dependent variables with a total of six variables,

namely: organizational identification and turnover intention as the dependent variable, participative

decision making, distributive justice perception and growth opportunities as independent variables, and

workplace inclusion as the mediating variable, as a culmination of the literature review. A convenience

sampling technique was used to collect the data from the respondents through face to face interaction

and via emails to examine the relationship between participative decision making, distributive justice

perception, growth opportunities, organizational identification and turnover intention, with the

mediating effect of workplace inclusion, with special reference to employees working in an HEI in the

north capital region of India.

3.2 Participants

A convenience sampling technique was used to collect the data. The primary concern of this study

was to research a sector with a diversified workforce. Therefore, the sample was drawn from higher

education institutions.

The data were collected from academicians of a private research university established in 2005, a

central research university established in 2008, and a private university established in 2011 located in

the North Capital Region of India, offering courses ranging from Business and Management studies,

both graduate and undergraduate courses, engineering, diplomas in engineering, science, arts, faculty of

education, Humanities and Social Sciences, Architecture & Planning. The time duration of data

collection was from August 2019 to December 2019. Around 400 survey instruments were sent for data

collection. Out of these 17 participants were excluded due to incomplete surveys, and because of

statistical outliers finally 383 questionnaires were included in the study. Respondents' statistics are

presented in table 1.

Int. Journal of Business Science and Applied Management / Business-and-Management.org

Table 1. Demographic Statistics

Variable

Category

Frequency

Gender

Male

246

Female

137

Age (in years)

25-30

123

31-35

105

36-40

Above 41

Experience

Below 5 years

103

5 to 10 years

180

10 to 15 years

Above 15 years

3.3 Measures

To measure the perception towards workplace inclusion (α= 0.820), the original fifteen-item

inclusion-exclusion scale of Mor Barak (2005) was adopted. Participative decision making (α= 0.735)

used the three-item scale by Steel and Mento (1987), distributive justice perception (α= 0.723) and

growth opportunities (α= 0.70) the six-item scale of Price and Muller (1986). Organizational

identification (α= 0.87) is measured by the six-item scale by Mael and Ashforth (1992) and turnover

intention (α= 0.80) used the four-item scale of Rosin and Korabik (1991). Internal consistency of the

instrument was tested through the Cronbach alpha value and AVE value, the result of which is that all

the constructs' Cronbach alpha value is above 0.70 and the AVE value is above 0.50 (Table II). A

detailed description of the constructs used for this study is presented below. All responses were

collected on a five-point Likert scale ranging from (1) representing strongly disagree to (5) strongly

agree and 3 as the midpoint.

Table 2. Internal Consistency of Scale

Variable

No.

Variables taken for the Study

Item

Coding

Factor

Loadings

Cronbach

Alpha (α )

AVE

No. of

items

1 Workplace inclusion (WI)

WI1

0.721

0.82 0.57 15

WI2

0.756

WI3

0.654

WI4

0.735

WI5

0.772

WI6

0.613

WI7

0.781

WI8

0.823

WI9

0.891

WI10

0.724

WI11

0.832

WI12

0.723

WI13

0.801

WI14

0.731

WI15

0.807

2 Participative Decision Making (PDM)

PDM1

0.746

0.735 0.58 3

PDM2

0.766

PDM3

0.774

3 Distributive justice perception (DJP)

DJP1

0.698

0.723 0.54 3

DJP2

0.724

DJP3

0.775

Aneesya Panicker and Avnish Sharma

4 Growth opportunities (GO)

GO1

0.662

0.7 0.53 3

GO2

0.763

GO3

0.745

5 Turnover Intention (TI)

TI1

0.768

0.8 0.56 4

TI2

0.747

TI3

0.753

TI4

0.728

6 Organizational Identification (OI)

OI1

0.835

0.799 0.55 6

OI2

0.824

OI3

0.734

OI4

0.714

OI5

0.731

OI6

0.614

3.4 Data analysis

Regression analysis was applied to test the hypothesized links between the dependent and

independent variables. This helps to examine whether the independent variables are able to predict the

level of variations in the dependent variables. In the context of the present study, regression analysis

helps to examine whether participative decision making, distributive justice perception and growth

opportunities (independent variables) serve as significant indicators of OI and TI (dependent variables).

Further, this study also examined the indirect effect of PDM, DJP and GO on OI and TI through the

mediating variable, namely workplace inclusion.

4. RESULTS

Table 3 presents the descriptive statistics of the research study, comprising mean and standard

deviations of each item in the scale.

Table: 3 Descriptive Statistics

Variable

No.

Variables taken for the

Study

Item

Coding

Mean

Std.

Deviation

1 Workplace inclusion (WI)

WI1

3.67 1.72

WI2

3.55 1.68

WI3

3.53 1.48

WI4

3.51 1.56

WI5

4.28 1.49

WI6

3.93 1.56

WI7

3.67 1.72

WI8

3.65 1.68

WI9

3.51 1.48

WI10

3.51 1.56

WI11

4.28 1.45

WI12

3.93 1.56

WI13

3.67 1.72

WI14

3.65 1.68

WI15

3.51 1.58

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Participative Decision

Making (PDM)

PDM1

3.51 1.56

PDM2

4.28 1.47

PDM3

3.93 1.56

Distributive justice

perception (DJP)

DJP1

4.46 1.11

DJP2

4.12 1.19

DJP3

4.33 1.48

4 Growth opportunities (GO)

GO1

4.17 1.83

GO2

4.21 1.83

GO3

3.87 1.66

5 Turnover Intention (TI)

TI1

4.97

1.18

TI2

4.19

0.99

TI3

4.98

1.15

TI4

3.91

1.17

Organizational

Identification (OI)

OI1

3.87 1.54

OI2

4.86 1.36

OI3

4.57 1.36

OI4

4.31 1.58

OI5

4.05 2.5

OI6

3.11 1.75

Correlation analysis is a bivariate analysis, used to examine the strength and direction of the

association between the variables under study. Direction here means a positive or negative association

between variables, where a positive sign indicates that with an increase in the value of one variable

another variable in association with it will also increase, while a negative sign means that an increase in

one variable leads to a decrease in another variable. The value indicates the strength of the relationship

between variables. In the present study Pearson correlation coefficients are taken, whose value ranges

from -1 to +1.

Table 4 shows the correlation matrix that exhibits the association among the variables under study.

Results of the correlation analysis reveal that there is significant positive association among all the

variables, namely workplace inclusion, participative decision making, distributive justice perception,

growth opportunities and organizational identification, except for turnover intentions, which is

negatively associated with all the other variables.

Table. 4 Correlation Matrix

Table 5 shows the findings of the multiple regression. The results establish a positive relationship

between participative decision making (β = 0.27; p = 0.00), distributive justice perception (β = 0.32; p

= 0.00) and growth opportunities (β = 0.13; p = 0.00) with organizational identification, explaining

PDM

DJP

PDM

0.214**

DJP

0.274**

0.201*

0.231**

0.149*

0.246**

-0.339**

-0.124*

-0.273**

-0.234**

0.241**

0.212*

0.254**

0.246**

0.251**

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

Note: WI- workplace Inclusion; PDM- Participative Decision making; DJP- Distributive

Justice Perception; GO- Growth Opportunities; TI- Turnover Intentions; OI- Organizational

Identification

Aneesya Panicker and Avnish Sharma

14.8%, 16.9% and 8.3% of the variance, respectively. There was also a significant positive relationship

between workplace inclusion and organizational identification (β = 0.46; p = 0.00), explaining 25.8%

of the variance.

On the other hand, the results show a significant negative relationship for participative decision

making (β = -0.08; p = 0.00), distributive justice perception (β = -0.24; p = 0.00) and growth

opportunities (β =- 0.25; p = 0.00) with turnover intention, explaining 3.5%, 10.2% and 11.1% of the

variance, respectively. The results also validate a statistically significant negative relationship between

workplace inclusion and turnover intention (β = -0.48; p = 0.00), explaining 28.3% of the variance.

To test the mediating effect of workplace inclusion on the antecedents of workplace inclusion,

organizational identification and turnover intention, the Baron and Kenny (1986) process was used.

According to this method, to test the positive effect of the mediator the following three conditions have

to be fulfilled. First, the independent variables and the dependent variables should be related with each

other. Second, the independent variable and the mediating variable should be related with each other.

Third, the mediating variable and the dependent variable should be related with each other. The

existence of all of these relationships is significant to establish the mediation effect. Further, the effect

of independent variables on the dependent variables should be reduced by controlling the effect of the

mediating variable on the dependent variables.

Results of the data analyses reflect partial mediation of workplace inclusion on the relationship

between participative decision making, distributive justice perception and growth opportunities and

organizational identification as a favourable outcome and turnover intentions as an unfavourable

outcome with the mediating effect of workplace inclusion (Refer Table 5). Beta values of all the

independent variables had a decreasing value and are significant in the presence of workplace inclusion

in relation with organizational identification. In the case of participative decision making, the beta

weight decreased from β = 0.228 (p < 0.01) to β = 0.226, the beta weight of distributive justice

perception from β = 0.314 (p < 0.01) to β = 0.257 (p < 0.01) and growth opportunities from β = 0.129

(p < 0.01) to β = 0.12 (p < 0.01).

Further, in the case of another dependent variable, employees’ turnover intention, the results

reflect how workplace inclusion partially mediates the relationship between distributive justice

perception and growth opportunities and turnover intentions, but the same was not the case with

participative decision making. Workplace inclusion was not significant, reflecting the fact that it fully

mediates the relationship between participative decision making and turnover intentions, because the

beta weight decreased from β = -0.08 (p < 0.01) to β = -0.017 (p > 0.01), which means WI fully

mediates the relationship between PDM and TI, explaining 7.8% of the variance. In the case of

distributive justice perception, the beta value decreases from β = -0.24 (p < 0.01) to β = -0.10 (p < 0.01)

and growth opportunities from β = -0.25 (p < 0.01) to β = -0.13 (p < 0.01), signifying the partial

mediation of WI and explaining 32.7% and 20.5% of the variance, respectively.

Table 5: Direct and indirect effect of independent, mediating and dependent variables

Type of Effect

Dependent

Variable→

Independent

Variable↓

Βeta Value

t-value

Βeta Value

t-value

Direct effect

0.458**

0.283

13.214

-0.478**

0.262

13.015

Direct effect

PDM

0.288**

0.157

17.436

-0.080**

0.035

19.046

Indirect effect

0.226**

0.178

17.483

-0.017

0.078

20.453

Direct effect

DJP

0.314**

0.178

14.284

-0.243**

0.102

13.693

Indirect effect

0.257**

0.191

16.738

- 0.104**

0.327

17.684

Direct effect

0.129**

0.078

18.020

-0.249**

0.111

13.020

Indirect effect

0.121**

0.078

18.652

- 0.131**

0.205

15.041

Table 6: Summary of research hypotheses and results

Hypotheses

Result

H1a: Participative decision making is directly related to organizational

identification.

Accepted

H1b: Participative decision making is negatively related to turnover intention.

Accepted

Int. Journal of Business Science and Applied Management / Business-and-Management.org

H2a: Distributive justice perception is directly related to organizational

identification.

Accepted

H2b: Distributive justice perception is negatively related to turnover intention.

Accepted

H3a: Growth opportunity is directly related to organizational identification.

Accepted

H3b: Growth opportunity is negatively related to turnover intention.

Accepted

H4: Workplace inclusion is positively related to organizational identification.

Accepted

H5: Workplace inclusion is negatively related to turnover intention.

Accepted

H6a: Workplace inclusion mediates the relationship between Participative

decision making and organizational identification.

Fully supported

H6b: Workplace inclusion mediates the relationship between Distributive

justice perception and organizational identification.

Partially supported

H6c: Workplace inclusion mediates the relationship between Growth

opportunity and organizational identification.

Partially supported

H7a: Workplace inclusion mediates the relationship between Participative

decision making and turnover intention.

Partially supported

H7b: Workplace inclusion mediates the relationship between Distributive

justice perception and turnover intention.

Partially supported

H7c: Workplace inclusion mediates the relationship between Growth

opportunity and turnover intention.

Partially supported

5. DISCUSSION AND RESEARCH IMPLICATIONS

The structures of organizations have been revamped due to the changing trends in the world

economy, thereby changing the equation of employee-employer relations within the industry due to

transformation in the composition of the workforce. This compels companies to audit their

organizational climate, HR practices, processes, systems, and style of managing this diversified

workforce. In this line, the purpose of this research study was to examine the conceptual model linking

participative decision making, distributive justice perception and growth opportunities with favorable

and unfavorable organizational outcomes, namely: organizational identification and turnover intention,

with the mediating effect of workplace inclusion for better practical implications of diversity and

inclusion in the workplace. The social identity theory was employed to develop the conceptual model

and was tested by collecting data from 383 academicians of a private research university in India.

The results of the regression analysis provide relatively strong support for the research hypotheses

that participative decision-making, distributive justice perception and growth opportunities have a

direct impact through workplace inclusion on organizational identification and turnover intention.

Workplace inclusion partially mediates the relationship between participative decision making,

distributive justice perception and growth opportunities with organizational identification, while in the

case of the relationship with turnover intention, workplace inclusion partially mediates the relationship

between distributive justice perception and growth opportunities but fully mediates it in the case of

participative decision making.

The research findings reveal that positive perceptions of participative decision making,

distributive justice perception, and growth opportunities significantly enhance the identification with

the institution and reduce their turnover intentions, which is consistent with the results of Pelled, L. H.,

Ledford, G. E., & Mohrman, S. A.,1999; Holvino, E., Ferdman, B. M., & Merrill-Sands, D. 2004;

Roberson, Q. M. 2006. Thus, if employees are informed and directly or indirectly involved in the

organizational decision making process, they tend to identify with their organizations, as well as find

their job more satisfying and sense a strong feeling towards the organization as an entity, which further

reaffirms the findings of Ashforth et. al 2008; Bartels, 2006; Okpu & Kpakol, 2015.

Thus, we can conclude that superficial attempts of the management towards inclusive workplace

are not sufficient for the retention of employees. Further, if the organization's policies towards

participative decision making, distributive justice perception, and growth opportunities are ill-

Aneesya Panicker and Avnish Sharma

structured or cumbersome, instead of providing an opportunity to prove their efficacy, employees will

not identify themselves with the institution, and thus, there will be no significant impact on employee

retention (Panicker, A., Agrawal, R. & Khandelwal, U. 2018).

5.1 Theoretical and Practical Implications

The study makes theoretical and practical contributions. The present study extended the research

work of Muchiri and Ayoko (2013) by incorporating workplace inclusion as a mediating variable

between the independent and dependent variables. The findings about the role of distributive justice,

growth opportunities and participative decision making in predicting favorable and unfavorable

outcomes have several implications for managerial practice, policy-makers, and administrators who are

concerned about reducing the turnover intentions and enhancing employees’ organizational

identification. We emphasize the need for heterogeneity in organizations, as this facilitates enhanced

organizational performance by enhancing the employee knowledge base and embracing their

differences. Since inclusive employment practices and policies foster workforce diversity (Roberson et

al. 2017), administrators and policymakers need to focus on fostering a positive and inclusive work

environment. Employees need to be informed about workforce diversity challenges through training-

cum-awareness programs, consultation services, with feedback for positive encouragement.

6. CONCLUSION

The present research examined the determinants of turnover intention and organizational

identification by examining the employees’ perception of distributive justice, growth opportunities and

participative decision making. The study tested the effect of workplace inclusion on mediating the

impact of distributive justice perception, participative decision making and growth opportunities on

favorable and unfavorable organizational outcomes.

The findings of the study have significant implications for academic institutions to better

understand and control factors that tend to enhance the sense of organizational identification of

employees and decrease their intention to leave the organization. This study provides guidelines for

enhancing workplace inclusion and organizational identification on the one hand, and reducing

employee turnover on the other hand, through supportive workplace inclusion measures.

6.1 Limitations and Future Prospects

Working on a research idea is not an easy task and researchers may have to face many hurdles in

the process of planning and executing a research idea. This research also has a few limitations, but if

addressed properly it will create positive outcomes and ideas for future researchers and organizational

managers.

The first limitation is that the research was conducted on academicians of three Universities

comprising a private research university established in 2005, a central research university established in

2008, and a private university established in 2011 located in the North Capital Region of India only.

Future researchers are advised to target the academicians from other geographical locations of India for

broader understanding of employees’ perceptions. Also, most of the respondents were male in this

survey. This raises the question of gender bias. This needs to be overcome by future researchers.

Future research can extend and enrich our framework further. The present work examines the

impact of participative decision making, distributive justice perception, and growth opportunities on

organizational identification and turnover intention. Further studies may investigate the relationship

between inclusion and organizational outcomes in greater detail. Apart from this, future studies could

undertake a longitudinal perspective to explore the enactment, advancement, and transformation

occurring in the field of workplace diversity and inclusion for leveraging diversity management

practices and policies.

Finally, studies on inclusion could take into consideration the effect of belongingness and

uniqueness needs, supportive supervisors and co-workers as well as the organization’s efforts towards

valuing creativity by sharing and encouraging views and opinions on individual well-being (Shore.et.al,

2010; Nishii et al. 2018).

Int. Journal of Business Science and Applied Management / Business-and-Management.org

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