Jaekwon Ko
SeungUk Hur
Jaekwon Ko earned a doctoral degree
in the Center for Public Administration and
Policy at Virginia Tech. His research interests
include human resource management,
organizational theory, public management,
and contracting.
E-mail: jaekk75@vt.edu
SeungUk Hur is a doctoral student in
the Center for Public Administration and
Policy at Virginia Tech. His research interests
include organizational theory, organiza-
tional culture, and leadership.
E-mail: seunguk@vt.edu
Public Administration Review,
Vol. 74, Iss. 2, pp. 176187. 2013 by
The American Society for Public Administration.
DOI: 10.1111/puar.12160.
176 Public Administration Review March | April 2014
Virginia Tech
The Impacts of Employee Benets, Procedural Justice,
and Managerial Trustworthiness on Work Attitudes:
Integrated Understanding Based on Social Exchange Theory
Recent public management literature has emphasized
the inuence of human resource management (HRM)
policies, including traditional benets, family-friendly
benets, procedural justice, and managerial trustworthi-
ness, on work attitudes. However, little research in public
administration has explored more detailed impacts of
each HRM policy. This article provides an integrated
understanding of the impacts of HRM policies using
social exchange theory. In addition, the moderating
impacts of procedural justice and managerial trustwor-
thiness on the relationship between employee benets and
work attitudes are examined. Using the Federal Human
Capital Survey 2008 data set, the authors nd that
two types of employee benets, procedural justice, and
managerial trustworthiness are positively related to job
satisfaction, whereas family-friendly benets, manage-
rial trustworthiness, and procedural justice are negatively
associated with turnover intention. The implications of
these ndings are thoroughly discussed.
T
he impact of human resource management
(HRM) policies on work attitudes has been
an important topic in the elds of HRM and
organizational psychology. Eective management of
human resources has been emphasized, as scholars
believe that human resources are organizations most
important assets and that the development of human
resources oers competitive advantages. To achieve
eective human resource management, public orga-
nizations have adopted various strategies, including
extensive training and development, regular perfor-
mance appraisals, performance-contingent rewards,
improved communication, increased empowerment,
employee benets, fair treatment, improvement in
the employment relationship, and so on. Focusing
on employee benets, this article explores the direct
impact of these benets on work attitudes and how
employees relationships with their organizations and
leaders serve to moderate the impact of employee
benets on work attitudes.
In order to improve work attitudes, public organi-
zations provide traditional benets such as health
insurance, life insurance, and retirement benets, as
well as family-friendly benets consisting of child
care and alternative work schedules (Newman and
Mathews 1999). In particular, during the last several
decades, we have witnessed the dramatic growth of
family-friendly benets designed to support employ-
ees who are faced with worklife conicts (Lee and
Hong 2011; Saltzstein, Ting, and Saltzstein 2001).
HRM policies in public organizations are under
pressure to respond to changes in family structure,
which have increased workforce diversity (Roberts
2000). For example, there has been a rapid change
in womens participation in the labor force since the
last half of the twentieth century. Female represen-
tation in administrative and professional jobs has
shifted noticeably in the past several decades. For
example, between October 1996 and October 2006,
the percentage of women holding administrative or
professional positions rose from 47.2 percent to 58.5
percent.1 With regard to working mothers, Ezra and
Deckman (1996) indicate that the percentage of
women with children under six years of age increased
from less than 19 percent in 1960 to 60 percent in
1990. In addition, the percentage of women in the
workforce with children between ages 6 and 17 rose
from 39 percent to 75 percent during the period
from 1960 to 1990. In the United States in 2008, 71
percent of women with children under 18 years of age
were employed, and among married couples, almost
60 percent reported that both spouses were employed
(U.S. Department of Labor 2010).
The changing demographics of the workforce mean
that employees now have greater responsibilities aris-
ing from their family life, in addition to the tradi-
tional concerns regarding success in the workplace. As
a result, public organizations have adopted a variety of
family-friendly work practices, such as extime, ex
site, telework, job sharing, part-time employment,
child care, elder care, maternity leave, and family leave
(Lee and Hong 2011; Newman and Mathews 1999).
However, as public organizations react to increasing
nancial diculties, downsizing pay and benets has
become a common phenomenon. As a result, public organizations family-friendly benets on job satisfaction and turnover intention.
have sought methods to improve employees work attitudes despite The rst section of this article provides an overview of the concept
limited employee benets. of SET and the subcategories included in SET. Data, measurement,
and method are explained in the second section. Finally, empirical
There is a growing awareness that employees perceptions of their ndings and their implications are discussed.
relationships with their organizations and leaders are associated with
employee satisfaction and turnover intention (Cho and Perry 2012; Theoretical Background and Hypotheses
Simons and Roberson 2003). These relationships have been studied Social Exchange Theory
using organizational justice and leader-member exchange (LMX) According to Blau (1964), SET provides a basis for understanding
theory. The research on organizational justice focuses on the role of the role that organizations and managers play in creating feelings of
fairness in the workplace. This research has shown that employees employee obligation and positive work attitudes. Social exchange
perceptions of the level of organizational justice have an impact on is relevant to an unspecied exchange or favorable action initiated
their work attitudes, such as job satisfaction and turnover intention by an organizations treatment of its employees, with the expecta-
(Colquitt et al. 2001). Additionally, recent studies in leadership the- tion that such treatment will be eventually reciprocated (Gould-
ory have emphasized the view that eective leadership is connected Williams and Davies 2005, 3). In short, employees feel obligated
with certain positive organizational outcomes, such as organizational to reciprocate by adopting a more positive attitude toward the
citizenship behavior and organizational commitment (Park 2012). workplace when they are exposed to a favorable work environment
In particular, LMX theory emphasizes reciprocal inuence proc- and desirable benets; however, they also adjust their work attitudes
esses between supervisors and subordinates (Graen and Scandura negatively in response to unfavorable treatment (Parzefall and Salin
1987). This theory assumes that high-exchange relationships, which 2010). Thus, positive social exchange can result in mutual benets
are characterized by high levels of mutual trust and condence, are to both the organization and employees. According to Eisenberger
positively related to employees work attitudes (Liden, Sparrowe, et al. (1986) and Graen and Scandura (1987), SET is identied as
and Wayne 1997; Wayne, Shore, and Liden 1997). comprising two types of social exchange. One is perceived organi-
zational support (POS), which focuses on the exchange relation-
Employee benets, including family-friendly benets, have gradu- ship between the employee and the organization. The other is
ally increased in importance as human resource policies because of leader-member exchange, which emphasizes the quality of exchange
the steep growth in female participation in the workforce and vari- between the employee and the supervisor and is based on the degree
ous employees needs. Despite this growing concern about employee of emotional support and exchange of valued resources (Lee and
benets, few studies have explored the impact of employee benets Hong 2011; Wayne et al. 2002). Following the logic of SET, this
on work attitudes in public organizations. In addition, studies article posits that employee benets make employees feel truly
have mainly focused on the direct relationships between employee valued and inclined to reciprocate by demonstrating positive work
benets and work attitudes (e.g., Kim and Wiggins 2011; Lee and attitudes. In addition, this article proposes to include procedural
Hong 2011). Employee benets are only justice and managerial trustworthiness as
one set of HRM policies, and organizations social exchange variables that moderate the
tend to adopt a diverse assortment of HRM Focusing on social exchange relationship between employee benets and
policies, including both tangible and intan- theory (SET), this article work attitudes (see Figure 1).
gible policies. Little is known about whether attempts to test the conven-
employee benets are related to positive work tional wisdom of the virtue of Perceived Organizational Support
attitudes from the macroscopic view of HRM According to Eisenberger et al. (1986), POS
HRM policies.
strategy. In short, previous studies may have may help explain employees emotional com-
overlooked key moderators of employee ben- mitment to their organizations. They suggest
ets, especially in the public sector. This article aims to ll this gap that employees develop global beliefs concerning the extent to
in the literature. which the organization values their contributions and cares about

Focusing on social exchange theory (SET), this article attempts

Social exchange Work attitudes
to test the conventional wisdom of the virtue of HRM poli-
cies. Studying SET is important in light of the theoretical root of
employee benets, organizational justice, and leader-member rela- POS
tionships. The basic assumption of SET is that positive, benecial Employee benefits Job satisfaction
actions directed at employees by the organization and/or its repre- Traditional benefits
sentatives contribute to the establishment of high quality exchange
relationships that create obligations for employees to reciprocate in Procedural justice Turnover intention
positive, benecial ways (Settoon, Bennett, and Liden 1996, 219).
Using data from the 2008 Federal Human Capital Survey (FHCS), LMX
we examine the inuence of traditional and family-friendly benets, Managerial
organizational justice, and managerial trustworthiness on job sat- trustworthiness
isfaction and turnover intention. Additionally, this article explores
whether employees perceptions of organizational justice and
managerial trustworthiness moderate the impacts of traditional and Figure 1 Research Framework
The Impacts of Employee Benefits, Procedural Justice, and Managerial Trustworthiness on Work Attitudes 177
their wellbeing (1986, 501). Employees who perceive that the
organization is supportive of them and committed to helping meet
their socioemotional and tangible needs will reciprocate by help-
ing the organization achieve its goals (Parzefall and Salin 2010). In
short, employees try to balance their attitude toward the organiza-
tion based on the support that the organization provides them.
Parzefall and Salin (2010) note that POS consists of fairness of
treatment (Rhoades and Eisenberger 2002), support from organiza-
tional agents of dierent rank (Eisenberger et al. 2002), and HRM
practices that recognize the importance of human capital (Allen,
Shore, and Grieth 2003). This study considers employee benets
and organizational justice as POS. Previous studies have indicated
that organizations use employee benets to develop employees
belief that organizations value their contributions and care about
their welfare (Eisenberger et al. 1986; Muse and Wadsworth 2012).
Employee benets are classied as either traditional benets or
family-friendly benets. With regard to organizational justice, previ-
ous studies typically have examined it as employees perceptions of
fairness in terms of distributive, procedural, and interactional justice
(Colquitt et al. 2001; Muse and Wadsworth 2012). However, some
studies of POS have focused on procedural justice as POS (Rhoades
and Eisenberger 2002; Tekleab, Takeuchi, and Taylor 2005) because
it shows how much employees can trust the organization in a trans-
action (Rubin 2009). Lind and Tyler (1988) nd that employees
experiencing procedural injustice might feel dissatisfaction in spite
of favorable benets.
Traditional Benefits and Family-Friendly Benefits
During the last 20 years, employee benets have been dramati-
cally increased in order to maintain the competitiveness of public
organizations. From the viewpoint of POS, Muse and Wadsworth
contend that organizations may strategically use benet packages to
send signals to their employees regarding this employment relation-
ship (2012, 115). Employee benets are organized into two broad
categories. The rst category includes traditional benets, including
health and life insurance and retirement benets. The second category
includes family-friendly benets that are designed to meet the diverse
requirements of employees faced with the problem of balancing work,
family, and personal needs (Roberts 2000; Roberts et al. 2004). Muse
and Wadsworth distinguish between traditional benets, which they
dened as those that are consistently oered across organizations,
and are therefore often expected by employees, and nontraditional
benets, which are those not typically oered by many organizations,
and therefore are not expected by employees (2012, 116).
Using a survey of New Jersey local governments, Roberts (2000)
indicates that traditional benets are important to employee job
choice and retention problems. In addition, Kim and Wiggins
(2011) nd that traditional benets have a signicant inuence on
employees job satisfaction and turnover intention. Based on SET,
traditional benets can be deemed positive and benecial actions
directed at employees by the organization, and they can create obli-
gations for employees to reciprocate in positive and benecial ways.
This may lead to employees positive job satisfaction and reduction
of turnover intention.
Hypothesis 1a: Satisfaction with traditional benets is posi-
tively associated with employees job satisfaction.
178 Public Administration Review March | April 2014
Hypothesis 1b: Satisfaction with traditional benets is nega-
tively associated with employees turnover intention.
The dramatic changes in the demographic makeup of the American
workforce in recent decades triggered specic issues of concern to
both employers and employees. Increasing numbers of women and
dual-earner parents now participate in the labor force. In addi-
tion, the number of employees who need elder care is increasing
as a result of the retirement of many in the baby boom genera-
tion (Kossek and Pichler 2007). Consequently, scholars interest
in family-friendly benets has grown dramatically. The increase in
the number of women and mothers in the workforce encourages
employers to nd ways to meet the diverse demands of a changed
workforce (Lee and Hong 2011).
Empirical studies have shown that the presence of family-friendly
benets is signicantly associated with improved work attitudes
and employee retention (Lockwood 2003). Saltzstein, Ting, and
Saltzstein (2001) indicate that family-friendly benets are positively
related to employees job satisfaction. Additionally, Lee and Hong
(2011) and Kim and Wiggins (2011) show that family-friendly
benets have a positive inuence on work attitudes and perform-
ance. From the viewpoint of SET, employees consider these benets
as extra. As a result, employees may feel obligated to exert extra
eort in return for extra benets.
Hypothesis 2a: Satisfaction with family-friendly benets is
positively associated with employees job satisfaction.
Hypothesis 2b: Satisfaction with family-friendly benets is
negatively associated with employees turnover intention.
Procedural Justice
In SET, the concept of organizational justice has proven valuable
in evaluating the employment relationship quality and organiza-
tional contributions to the exchange relationship (Parzefall and
Salin 2010). Employees assess their treatment by organizations
and use this appraisal to alter their eort/outcome expectancy.
In previous studies, organizational justice has typically been
examined as employees perceptions of fairness in organizational
settings. Distributive justice refers to the fairness of resource
distribution. Procedural justice concerns the extent to which an
individual perceives the procedures used to determine outcomes
as fair. Interactional justice refers to an individuals perceptions
of fair treatment by an organizations leaders and decision mak-
ers (Colquitt et al. 2001). As discussed earlier, among three types
of organizational justice, we explore procedural justices inuence
on job satisfaction and turnover intention. Specically, procedural
justice centers on the fairness of the methods used to determine the
distribution of resources among employees. According to Rhoades
and Eisenberger (2002), fairness in decisions on resource distribu-
tion as POS has a positive inuence on organizational outcomes
and job-related attitudes by indicating a concern for employees
welfare.
This study examines the relationship between procedural justice
work attitudes at federal agencies. Empirical studies indicate that
procedural justice is signicantly related to employees work-related
attitudes, such as job satisfaction, turnover intention, organizational
commitment, and so on (Choi 2011; Rubin
2009). Based on SET, when employees judge Based on SET, when employees
an organizations treatment of them to be judge an organizations treat-
fair, they may feel obligated to repay the ment of them to be fair, they
organization. may feel obligated to repay the
Hypothesis 3a: Procedural justice is
organization.
positively associated with employees job
satisfaction.
Hypothesis 3b: Procedural justice is negatively associated
with employees turnover intention.
Managerial Trustworthiness
According to Wang et al. (2005), there are two contrasting per-
spectives in leadership studies. The rst perspective is related to
the leader-focused viewpoint to explain individual, group, and
organizational performance outcomes by identifying and examining
specic leaders characteristics. This viewpoint is relevant to transfor-
mational leadership. The second perspective is a relationship-based
perspective obtained by focusing explicitly on how reciprocal social
exchanges between leaders and members evolve, nurture, and
sustain the dyadic relationship. The relationship is based on social
exchange, wherein each party must oer something the other party
sees as valuable and each party must see the exchange as reasonably
equitable or fair (Graen and Scandura 1987, 182). One way this
has been studied is through LMX.
LMX theory related to the second perspective focuses on recip-
rocal inuence processes between supervisors and subordinates
(Graen and Scandura 1987). The core elements of this theory are
social exchange, reciprocity, and equity. In particular, LMX theory
emphasizes the quality of the exchange between supervisors and
subordinates and is based on the degree of emotional support and
the exchange of valued resources (Wayne et al. 2002). Exchange
relationships can take two dierent forms: low-quality LMX
relationships and high-quality LMX relationships. Previous studies
have found that the quality of exchange relationships is related to
important leader and subordinate behaviors. For example, employ-
ees in high-quality LMX relationships are more likely to enjoy the
tangible and intangible commodities and a higher degree of trust
and support between supervisors and employees. As a result, high-
quality LMX relationships will encourage employees to expand their
roles beyond what is formally expected, which leads to positive work
outcomes (Wayne, Shore, and Liden 1997).
LMX refers to the quality of exchange between employees and
supervisors and reects the degree of trust, respect, and loyalty in
leader-subordinate exchanges (Graen and Scandura 1987; Liden,
Sparrowe, and Wayne 1997). In particular, although trust captures
a single dimension of leader-member exchange, previous research
has indicated that trust forms the basis for exchange relationships
(Coyle-Shapiro and Shore 2007; Shore et al. 2006). Trust can be
viewed as an attitude held by a truster toward a trustee. This attitude
is derived from the trusters perceptions, beliefs, and attributions
about the trustee (Whitener et al. 1998). Trustworthiness is an
antecedent of trust, and an evaluation of someones trustworthi-
ness becomes trust in him or her (Cho and Perry 2012). This study
focuses on trustworthiness because it is more practical. The degree
The Impacts of Employee Benefits, Procedural Justice, and Managerial Trustworthiness on Work Attitudes 179
of employees trust in their leaders has often
been used to indicate the quality of the
reciprocal exchange relationship between
supervisors and subordinates (Lavelle, Rupp,
and Brockner 2007; Lewicki, Wietho,
and Tomlinson 2005; Moorman and Byrne
2005). Therefore, managerial trustworthi-
ness is important in building trust because
employees can be vulnerable to supervisors who act in a capricious
or self-interested manner when distributing resources to employees.
However, supervisors can engender perceptions of justice by provid-
ing resources fairly. Empirical studies have shown that managerial
trustworthiness is positively related to job satisfaction, organiza-
tional commitment, and work attitudes (Byrne et al. 2011; Cho and
Perry 2012). We expect that when employees perceive their manager
as trustworthy, they extend these beliefs to the organization through
transference and reciprocate in a way that is positive and benecial
to the organization.
Hypothesis 4a: Managerial trustworthiness is positively asso-
ciated with employees job satisfaction.
Hypothesis 4b: Managerial trustworthiness is negatively
associated with employees turnover intention.
Moderating Impacts of Procedural Justice and Managerial
Trustworthiness
Simply oering employee benets does not necessarily mean that
employees feel as if they are valued by the organization and that
the organization is concerned with their well-being (Thompson
et al. 2004). Previous research has suggested that the workplace
environment may inuence the eect of employee benets on
work attitudes (Allen 2001; Batt and Valcour 2003). This article
argues that organizational justice as POS and managerial trust-
worthiness as LMX are fundamental components in determining
the impact of employee benets on work attitudes. Gouldner
(1960) contends that SET demonstrates subtlety in light of
the importance of the employment relationship. For instance,
although the norm of reciprocity is universal, its eect depends
on the circumstances. Lambert notes that employee benets
are not a constant, even when all employees are covered by the
same plan, since workers may value the same benets dierently,
subsequently incurring dierent obligations to the organization
(2000, 802). In particular, Wang and Walumbwa (2007) nd that
transformational leadership moderates the relationship between
employee benets and both organizational commitment and
work withdrawal. This article aims to explore how employees
varying obligations to the organization and its leaders moderate
the impact of traditional benets and family-friendly benets on
work attitudes.
First, we contend that procedural justice acts as a moderator that
may help employees deal with the level of satisfaction with employee
benets. With regard to the importance of procedural justice, Rubin
argues that people can experience dissatisfaction with a situation
despite the receipt of favorable outcomes, due to the use of a process
they view as inappropriate. Conversely, the use of a process viewed
as fair and just can make negative outcomes more palatable (2009,
126). We agree with her argument partially. Although employees
may have a lower level of satisfaction with Data and Measurement
employee benets, through high procedural In short, employees perceiving a Data and Method
justice, they may still feel as if they are valued high level of procedural justice The study used data from the 2008 Federal
by the organization and believe that the may have similar levels of job Human Capital Survey. The U.S. Oce of
organization is concerned with their well- satisfaction and turnover inten- Personnel Management (OPM) publishes
being. In short, employees perceiving a high the results of the surveys, which assess federal
level of procedural justice may have similar
tion regardless of their level employees perceptions of important vari-
levels of job satisfaction and turnover inten- of satisfaction with employee ables that are presumed to be associated with
tion regardless of their level of satisfaction benets. successful organizations every two years.
with employee benets. However, employees Recently, the survey was renamed the Federal
that perceive a lack of procedural justice may Employee Viewpoint Survey; it is published
assess the organizations support for their well-being with visible annually. For the 2008 FHCS, the OPM surveyed more than
benets. Therefore, in case of low procedural justice, favorable 400,000 full-time, permanent employees in federal agencies, with a
employee benets may have a positive inuence on job satisfaction response rate of 51 percent (N = 212,223) (OPM 2009).
and a negative inuence on turnover intention.
We used two statistical techniques to test our predictions about job
Hypothesis 5a: Procedural justice will moderate the relation- satisfaction and turnover intention. First, this study used ordinary least
ship between satisfaction with employee benets and job squares (OLS) regression analysis to estimate the directions and mag-
satisfaction such that there will be a strong positive relation nitudes of the relationships between the independent variables and job
when procedural justice is low, but a weak positive relation satisfaction because job satisfaction is a continuous variable. Second,
when procedural justice is high. we used a binary logit analysis to test employees turnover intention
because the variable was coded as a dummy variable. Missing data were
Hypothesis 5b: Procedural justice will moderate the relation- excluded by the listwise deletion function, and the nal survey sample
ship between satisfaction with employee benets and turnover amounted to about 62,500 valid sample numbers.2
intention such that there will be a strong negative relation
when procedural justice is low, but a weak negative relation Dependent Variables
when procedural justice is high. Job satisfaction and turnover intention reect the outlook that
employees have about their employment. Employees display higher
Second, managerial trustworthiness based on aective support from levels of job satisfaction, and subsequently lower turnover inten-
leaders may encourage employees to deal with the potential nega- tions, when their working environment satises their needs. This
tive eects of low satisfaction from employee benets (Erdogan, study has two dependent variables that are goals of employee
Kraimer, and Liden 2004). For example, employees with high man- benets and the employment relationship as HRM policies: job
agerial trustworthiness have a strong trust-based relationship with satisfaction and turnover intention. In line with the research of Cho
their leaders. Even though the level of satisfaction with employee and Perry (2012), job satisfaction was measured using responses
benets is low, employees with high managerial trustworthiness may to the following survey items: I recommend my organization as a
have similar levels of job satisfaction and turnover intention because good place to work, Considering everything, how satised are you
managerial trustworthiness may facilitate the employees intrinsic with your job? and Considering everything, how satised are you
motivation in spite of limited nancial resources of the organiza- with your organization? (all measured on a ve-point Likert scale).
tion. On the other hand, in case of low managerial trustworthi- The Cornell Job Descriptive Index indicates that job satisfaction can
ness, employee benets may have a strong positive inuence on job be measured by examining ve aspects of the work environment:
satisfaction and a strong negative inuence on turnover intention, satisfaction with the job itself, opportunities for recognition and
for the same reasons mentioned in procedural justice. In brief, for advancement, pay, coworkers, and supervisors (Smith, Kendall, and
employees with high managerial trustworthiness, we expect a weak Hulin 1969). Though this study does not measure satisfaction by
relationship between satisfaction with employee benets and work focusing on particular work aspects (e.g., advancement and pay) or
attitudes. In cases with low managerial trustworthiness, we expect satisfaction with coworkers and supervisors, previous research has
a strong positive relationship between satisfaction with employee frequently used satisfaction with job and organization to measure
benets and work attitudes. job satisfaction (e.g., Choi 2013; Fernandez and Moldogaziev 2013;
Pitts 2009). The reported scores were averaged for the items, and the
Hypothesis 5c: Managerial trustworthiness will moderate Cronbachs alpha for the scale is .89. Turnover intention was meas-
the relationship between satisfaction with employee benets ured as whether an employee intended to leave the organization. In
and job satisfaction such that there will be a strong positive the 2008 FHCS, the relevant question was, Are you considering
relation when managerial trustworthiness is low, but a weak leaving your organization within the next year, and if so, why?
positive relation when managerial trustworthiness is high. Respondents answered yes or no. The turnover variable was recorded
as 1 when the respondent expressed the intention to leave his or her
Hypothesis 5d: Managerial trustworthiness will moderate the agency and 0 when the respondent did not.
relationship between satisfaction with employee benets and
turnover intention such that there will be a strong negative Independent Variable
relation when managerial trustworthiness is low, but a weak This study has four independent variables, which were measured
negative relation when managerial trustworthiness is high. by multiple items. All have acceptable Cronbachs alpha values,
180 Public Administration Review March | April 2014
Table 1 Descriptive Statistics for Variables Table 2 OLS Regression Analysis of Job Satisfaction
Variables M SD Domain Coefficient Robust SD
Job satisfaction 3.839 .990 15 Gender (female = 1, male = 0) 0.007 0.005 0.004
Turnover intention .314 .464 01 Minority (minority = 1) 0.003 0.007 0.001
Gender (female = 1, male = 0) .531 .499 01 Goal clarity 0.157*** 0.004 0.133
Minority (minority = 1) .280 .449 01 Performance-oriented culture 0.006 0.005 0.006
Goal clarity 4.115 .833 15 Diversity management 0.013*** 0.004 0.012
Performance-oriented culture 3.156 .967 15 Family-friendly benefits (z-score) 0.046*** 0.003 0.046
Diversity management 3.700 .907 15 Traditional benefits (z-score) 0.031*** 0.003 0.031
Family-friendly benefits 3.512 .948 15 Procedural justice (z-score) 0.299*** 0.006 0.302
Traditional benefits 3.673 .754 15 Managerial trustworthiness (z-score) 0.441*** 0.005 0.448
Procedural justice 3.330 .878 15 Family-friendly benefits * Justice 0.016*** 0.005 0.018
Managerial trustworthiness 3.472 1.000 15 Traditional benefits * Justice 0.001 0.005 0.002
Family-friendly benefits * Trustworthiness 0.013** 0.005 0.014
Traditional benefits * Trustworthiness 0.000 0.005 0.000
Constant 3.016*** 0.025
ranging from .76 to .90. We integrated the multiple measurements N 62,563
into a single indicator using a z-score.3 We used the responses to F-value 9792.08
four survey items to measure satisfaction with family-friendly ben- R2 0.6799
ets. Five items were used to measure satisfaction with traditional **p < .05; ***p < .01 (all tests two-tailed).
benets. Six items were used to measure procedural justice, in line
with the research of Rubin (2009). Finally, we measured managerial
3.5
trustworthiness using Yang and Kassekerts (2010) ve-item form.
Procedural justice and managerial trustworthiness variables are sub-
jective measures. Although there is some controversy about whether

perceptual measures are valid, many scholars argue that there are
signicant relationships between subjective and objective measures
in public management research (Choi 2011; Pandey, Coursey, an
Moynihan 2007; Pitts 2009).
Control Variable
In the models, this study uses control variables for various factors
that inuence job satisfaction and turnover intention. Demographic
variables were recorded as dummy variables in order to control their
eects on dependent variables. The ndings of previous research
show that dierences in terms of gender and minority signicantly
aect perception of job satisfaction and turnover intention. The
gender variable was coded 1 when the respondent was female and 0
for males. The minority variable was coded 0 when the respondent
was white and 1 when the respondent was nonwhite. In addition,
this study used performance-oriented culture, diversity manage-
ment, and goal clarity, which are expected to have eects on job
satisfaction and turnover intention (Cho and Perry 2012; Choi
2009; Yang and Kassekert 2010). Table 1 provides the descriptive
statistics of the variables.
Results
All of the variables in this study were measured based on self-
reported responses that came from the 2008 FHCS, which can
lead to common method bias. Harmans single-factor test is useful
for examining the seriousness of common method bias (Cho and
Perry 2012). In this single-factor test, common method bias is
assumed to exist if (1) a single factor emerges from unrotated fac-
tor solutions or (2) a rst factor explains the majority of the vari-
ance in the variables (Podsako and Organ 1986). In this study,
factor analysis indicated that ve factors are extracted, and the
biggest factor explains only 29 percent of the covariance among
the measures. This means that common method bias is not a seri-
ous concern.
Table 2 presents the OLS regression results for job satisfaction.
We expected that satisfaction with traditional and family-friendly
The Impacts of Employee Benefits, Procedural Justice, and Managerial Trustworthiness on Work Attitudes 181
Job Satisfaction
Low PJ
3
High PJ
2.5
Low Medium High
Family-Friendly Benefits
Note: PJ = procedural justice.
Figure 2 Interaction of Family-Friendly Policies and Procedural
Justice for Job Satisfaction
benets, procedural justice, and managerial trustworthiness would
be positively associated with job satisfaction, based on SET. As
expected, these independent variables are signicantly and positively
associated with job satisfaction, in support of hypotheses 1a, 2a,
3a, and 4a. With regard to the control variables, goal clarity and
diversity management are positively associated with job satisfaction.
All other conditions being equal, being a female or a member of a
minority does not seem signicantly related to job satisfaction.
The moderating eects of procedural justice and managerial
trustworthiness are consistent only with the relationship between
satisfaction with family-friendly benets and job satisfaction, in
partial support of hypotheses 5a and 5c. In gure 2, we present the
interaction between satisfaction with family-friendly benets and
procedural justice. As the level of satisfaction with family-friendly
benets increases, job satisfaction is elevated. When procedural jus-
tice is high, the impact of satisfaction with family-friendly benets
on job satisfaction is slight. The impact of satisfaction with family-
friendly benets under low procedural justice is stronger than under
high procedural justice. The regression result for the relationship
between managerial trustworthiness and job satisfaction is presented
 0
-0.2

Turnover Intention
-0.4
3.3 -0.6 Low PJ
Job Satisfaction

Low MT -0.8 High PJ

High MT -1
-1.2
2.8 -1.4
-1.6
Low Medium High
Family-Friendly Benefits
2.3
Low Medium High Note: PJ = procedural justice.
Family-Friendly Benefits Figure 4 Interaction of Family-Friendly Policies and Procedural
Justice for Job Satisfaction
Note: MT = managerial trustworthiness.
Figure 3 Interaction of Family-Friendly Policies and Managerial
Trustworthiness for Job Satisfaction family-friendly benets on turnover intention. Regarding the interac-
tion terms, the interaction between satisfaction with family-friendly
benets and procedural justice is signicant. Hypothesis 5b is partially
Table 3 Logistic Regression of Turnover Intention
supported, but hypothesis 5d is not supported. In gure 4, we present
Coefficient Robust SD Odds Ratio the interaction between satisfaction with family-friendly benets and
Gender (female = 1, male = 0) 0.161*** 0.020 1.175 procedural justice. As the level of satisfaction with family-friendly
Minority (minority = 1) 0.199*** 0.028 1.220 benets increases, turnover intention is decreased. When procedural
Goal clarity 0.071*** 0.013 0.932
Performance-oriented culture 0.021 0.017 0.979
justice is high, the impact of satisfaction with family-friendly benets
Diversity management 0.042*** 0.015 1.043 on turnover intention is slight. The impact of satisfaction with family-
Family-friendly benefits (z-score) 0.149*** 0.012 0.862 friendly benets under low procedural justice is stronger than under
Traditional benefits (z-score) 0.048*** 0.012 1.049 high procedural justice. Among the control variables, several factors
Procedural justice (z-score) 0.311*** 0.022 0.732
Managerial trustworthiness (z-score) 0.323*** 0.017 0.724
are substantially related to turnover intention. Whereas goal clarity
Family-friendly benefits * Justice 0.044** 0.017 1.045 lessens turnover intention, diversity management is positively related
Traditional benefits * Justice 0.033 0.017 1.034 to turnover intention. In addition, female and minority employees are
Family-friendly benefits * Trustworthiness 0.026 0.017 0.975 more likely to leave the agency.
Traditional benefits * Trustworthiness 0.027 0.017 0.974
Constant 1.056*** 0.091 0.348
N 62552 Discussion and Conclusion
Pseudo R2 0.0737 The purpose of this article was to explore the relationships between
**p < .05; ***p < .01 (all tests two-tailed). HRM policies and work-related attitudes in public organizations.
Previous studies have focused on the individual impacts of employee
benets, procedural justice, and managerial trustworthiness.
in gure 3. The moderating eect of managerial trustworthiness is However, little research in public administration has explored the
similar to that of procedural justice: when managerial trustworthi- integrated impacts of each HRM policy. Our ndings contribute to
ness is low, satisfaction with family-friendly benets is more strongly lling this gap in the literature.
associated with job satisfaction.
First, as expected, results show that satisfac-
We used binary logistic regression analysis As the level of satisfaction tion with family-friendly benets is positively
because turnover intention was measured as a with family-friendly benets associated with job satisfaction and negatively
binary variable. This study expected that based related to turnover intention. In contrast,
increases, turnover intention is
on SET, satisfaction with traditional and satisfaction with traditional benets is related
family-friendly benets, procedural justice,
decreased. to job satisfaction and turnover intention
and managerial trustworthiness would be in a positive way. Regarding family-friendly
negatively associated with employee turnover intention. However, benets, this nding is consistent with previous studies (e.g., Lee
as shown in table 3, satisfaction with family-friendly benets, and Hong 2011; Kim and Wiggins 2011). Previous studies have
procedural justice, and managerial trustworthiness is signicantly highlighted the importance of family-friendly benets in that they
associated with turnover intention in a negative way, in support of meet the diverse demands of a changed workforce. As a result, fam-
hypotheses 2b, 3b, and 4b. Contrary to our expectation, satisfaction ily-friendly benets play an important role in improving employee
with traditional benets is not negatively associated with turnover morale, reducing turnover intention, and retaining organizational
intention. Thus, hypothesis 1b is not supported. knowledge (Lockwood 2003).

As discussed earlier, we include a series of interaction terms in our However, the nding shows that although satisfaction with tra-
models to test whether procedural justice and managerial trustworthi- ditional benets is positively associated with job satisfaction, it is
ness moderate the impact of satisfaction with traditional benets and not negatively related to turnover intention. This nding does not
182 Public Administration Review March | April 2014
correspond with previous studies (e.g., Kim and Wiggins 2011).
It is an interesting point. From the viewpoint of SET, traditional
benets available to all employees, regardless of performance,
would be less likely to be associated with perceived organizational
support, presumably because employees do not feel that they are
particularly valued (Lambert 2000; Wayne, Shore, and Liden 1997).
Consequently, traditional benets would not enhance psychologi-
cal attachment to the organization. Previous research indicates that
turnover intention is related to degrees of psychological detachment
from the organization (Tett and Meyer 1993). In short, traditional
benets are not negatively associated with turnover intention, based
on the viewpoint of SET. If organizations want to build positive
social exchange with their employees, employee benets should
be recognized as benets beyond those typically oered by most
organizations. Consequently, employees feel obligated to reciprocate
in ways such as positive work attitudes.
Second, consistent with previous studies, procedural justice as
POS is positively related to desirable work attitudes in employees,
such as increased job satisfaction and decreased turnover intention
(e.g., Choi 2011; Rubin 2009). In addition, the analysis supports
the ndings of some previous studies that suggest that managerial
trustworthiness as LMX is a useful resource to elevate job satisfac-
tion and decrease turnover intention (e.g., Cho and Perry 2012;
Tekleab, Takeuchi, and Taylor 2005; Yang and Kassekert 2010).
The interesting point, of course, is that previous studies about the
relationship between managerial trustworthiness and turnover
intention indicate contradictory results. According to Cho and
Perry (2012), managerial trustworthiness is signicantly associated
with turnover intention in a negative way. Tekleab, Takeuchi, and
Taylor (2005) nd that leader-member exchanges inuence turnover
intention through job satisfaction as a mediator. On the contrary,
Wayne, Shore, and Liden (1997) and Masterson et al. (2000) show
that leader-member exchanges are not related to turnover intention.
The core idea is that POS and LMX are distinct from one another
and their outcomes dierent. For instance, POS is more likely to
be related to outcomes to fulll obligations to the organization,
including organizational commitment, turnover intention, and
organizational-directed organizational citizenship behavior. On the
other hand, LMX is more likely to be associated with outcomes that
directly benet leaders, including performance, supervisor-directed
organizational citizenship behavior, and favor doing. Although
our study does not identify dierent outcomes of POS and LMX,
ndings show that both POS and LMX are negatively linked with
turnover intention.
Third, the moderating eects of procedural justice and managerial
trustworthiness on the relationship between satisfaction with tradi-
tional and family-friendly benets and work attitudes constitute the
most interesting nding of this study. Results reveal that procedural
justice moderates the relationships between satisfaction with family-
friendly benets and job satisfaction and turnover intention. But
the moderating eect of managerial trustworthiness is consistent
only with the relationship between satisfaction with family-friendly
benets and job satisfaction. A possible reason for these results is
that outcomes of POS and LMX are dierent. For example, job
satisfaction is a common outcome of POS and LMX, but turnover
intention is related only to POS (Masterson et al. 2000; Wayne,
Shore, and Liden 1997). Therefore, managerial trustworthiness may
The Impacts of Employee Benefits, Procedural Justice, and Managerial Trustworthiness on Work Attitudes 183
not moderate the relationship between satisfaction with family-
friendly benets and turnover intention. Tables 2 and 3 demonstrate
these very intriguing relationships. At low levels of procedural jus-
tice, satisfaction with family-friendly benets is strongly related to
job satisfaction, but for employees enjoying high levels of procedural
justice, the impact of satisfaction with family-friendly benets on
job satisfaction is weak. Furthermore, at low levels of managerial
trustworthiness, satisfaction with family-friendly benets is strongly
associated with job satisfaction; for employees enjoying high levels
of managerial trustworthiness, the relationship is weak.
Theoretical Implications
Our ndings have important theoretical implications. First, satis-
faction with traditional benets is not negatively related to turno-
ver intention. In addition, we do not nd signicant interactions
between procedural justice and managerial trustworthiness and
satisfaction with traditional benets with regard to job satisfaction
and turnover intention. Based on the SET assumption that positive,
benecial actions directed at employees by the organization and/
or its representatives contribute to the establishment of high qual-
ity exchange relationships that create obligations for employees to
reciprocate in positive, benecial ways (Settoon, Bennett, and Liden
1996, 219), we argued that satisfaction with traditional benets
may inuence work attitudes, and procedural justice and managerial
trustworthiness may moderate the relationship between satisfaction
with traditional benets and work attitudes. Our results are consist-
ent with Muse and Wadsworths (2012) ndings that benets that are
not discretionary and are oered to all employees of the organization
are not related to social exchange. In short, this distinguishes among
dierent kinds of benets (traditional benets versus family-friendly
benets) and shows that this distinction matters when predicting
employees feelings toward organizational support.
Second, SET has been used to examine the motivational basis
behind employee behaviors and the formation of positive employee
attitudes. For example, SET has been useful in explaining why
employees express loyalty to the organization and engage in behav-
iors that typically are neither formally rewarded nor contractually
enforceable. SET is based on two levels of social exchange: employ-
ees and (1) the organization and (2) their immediate supervisor.
However, research investigating these two constructs has devel-
oped independently. Recently, several studies have attempted to
integrate these two levels of social exchange (e.g., Masterson et al.
2000; Wayne, Shore, and Liden 1997). These studies indicate
that outcomes of POS are linked with fullling obligations to the
organization, whereas outcomes of LMX directly benet leaders.
For instance, the studies that distinguish between outcomes of
POS and LMX indicate that job satisfaction is a common outcome
of POS and LMX, but turnover intention is related only to POS.
Though this study explores only turnover intention among dierent
outcomes, our ndings provide evidence that POS and LMX lead to
outcomes that are indistinct. We suggest that future research needs
to explore whether POS and LMX are linked to dierent outcomes.
If there are dierent outcomes, future research should investigate a
clearer classication of outcomes.
Third, our ndings are of theoretical relevance to the SET, POS, and
LMX literature. Previous research has focused on POS and LMX
as either an independent or dependent variable, but rarely have
interactions between POS and LMX been determine. It can produce potential problems
explored. The ndings reveal here that when If organizations want to build in measuring the net eects of employee
employees professing low satisfaction with positive employment relation- benets, procedural justice, and managerial
family-friendly benets feel that the organiza- ships with their employees, trustworthiness on work attitudes. Therefore,
tion or managers care about them in the realm managers should focus on future research needs to measure the causal
of procedural justice and managerial trust- relationship among them based on longitu-
worthiness, they indicate higher level of job
benets that recognize the dinal analysis. Third, the data presented are
satisfaction regardless of their satisfaction with organizations employees par- based on self-administered questionnaires and
family-friendly benets. It is quite plausible ticular concerns rather than the may suer from common method bias, which
that although some variables are connected general benets oered by most inates the relationships among variables
with social exchange, their inuence on social organizations. (Podsako and Organ 1986). Although com-
exchange is dierent. Based on our ndings, mon method bias in this study is not serious
we suppose that psychological factors associ- through Harmans single-factor test, our nd-
ated with procedural justice and managerial trustworthiness may ings for the relationships among independent variables and depend-
have stronger inuences on social exchange than material factors ent variables should be interpreted with caution. Though Harmans
provided by family-friendly benets. Little research has explored single-factor test has been used by researchers to address the issue
the relative importance of factors related to social exchange. Future of common method bias, it has several limitations. According
research needs to pay attention to this point. to Podsako et al. (2003), it does not control for method eects
statistically. In addition, if only one factor emerges from the factor
Practical Implications analysis and this factor accounts for a majority of the variance in the
From our ndings, we can derive several practical implications. items, it concludes that common method variance is a major prob-
First, although traditional benets are needed to maintain competi- lem. But, it is unlikely that a single-factor model will t the data.
tiveness in the labor market, these benets are not strongly associ- Fourth, this study explored the eects of family-friendly benets
ated with positive social exchange. If organizations want to build on work attitudes. Satisfaction with family-friendly benets may
positive employment relationships with their employees, managers depend on individuals situations. We suggest the need for future
should focus on benets that recognize the organizations employ- research to give greater consideration to the potential dierential
ees particular concerns rather than the general benets oered by impact of family-friendly benets based on marital status, parental
most organizations. status, workfamily conicts, and so on. Finally, the generalizability
of the ndings of this study should be treated with caution. This
Second, discovery of the moderating eects of procedural jus- study used data from the 2008 FHCS. The OPM conducted the
tice and managerial trustworthiness has valuable implications for FHCS with more than 400,000 randomly selected federal govern-
public managers experiencing nancial diculties. In the recent ment employees. The response rate was 51 percent (212,233), and
economic crisis, public organizations limited budgets for employee the sample size of this study, removing missing data, was just over
benets to compete with other organizations. Our ndings revealed 60,000. Therefore, large numbers of missing data can cause a gener-
that employee benets have only a slight ability to leverage work alizability issue.
attitudes when employees enjoy high levels of procedural justice
and managerial trustworthiness. Therefore, this study suggests that Despite these limitations, this study contributes to the study of
managers should focus on improving employment relationships the integrated impacts of each HRM policy on work attitudes.
rather than expanding employee benets to enhance work attitudes We found that each HRM policy inuences job satisfaction, but
under the limited budgets. traditional benets are not negatively related to turnover intention.
In addition, when employees have strong employment relationships,
Third, this study suggests a needs assessment, which is an eective employee benets inuence on job satisfaction is slight. This result
tool to clarify problems and identify appropriate interventions or provides useful information to public organizations that are looking
solutions. According to the Bureau of Economic Analysis, employ- to improve employee satisfaction and retention while faced with a
ees in federal agencies receive superior benets compared with limited resource environment.
employees in the private sector. For example, in 2010, federal work-
ers enjoyed average benets of $48,041, which compared to average Notes
benets in the U.S. private sector of just $11,096.4 Therefore, 1. See the 2006 Demographic Prole of the Federal Workforce at http://www.opm.
federal agencies need to nd particular benets that employees want gov/policy-data-oversight/data-analysis-documentation/federal-employment-reports/
rather than an overall improvement in the benet package. demographics/data-analysis-documentation/ (accessed November 19, 2013).
2. Missing data for family-friendly benets include both missing data and non-
Limitations response. Because we could not distinguish the dierence, the listwise deletion
There are several limitations to this research. First, this research function was used rather than using weights to deal with nonresponse error and
was based on SET, which includes POS and LMX. Although we missing data.
used procedural justice as POS and managerial trustworthiness as 3. We used a z-score to center or standardize predictor and moderator variables
LMX, the two variables do not fully capture the concepts of POS that are measured on a continuous scale. Because predictor and moderator
and LMX. Therefore, we suggest that a future study could further variables generally are highly correlated with the interaction terms, centering or
develop proxies for POS and LMX. The second limitation is that standardizing continuous variables can reduce multicollinearity problems in the
this research used cross-sectional data, making causality dicult to regression equation (Frazier, Tix, and Barron 2004).

184 Public Administration Review March | April 2014

4. See U.S. Bureau of Economic Analysis, National Income and Product Accounts,
at http://www.bea.gov/national/nipaweb (accessed November 19, 2013). We
divided compensation by full-time equivalents to get average compensation. To
get benets only, we subtracted wages from total compensation.
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Appendix Item Components of Measures and Results of Factor Analyses
Variables Factor Analyses
Job satisfaction = .89
Considering everything, how satisfied are you with your organization? .92
Considering everything, how satisfied are you with your job? .90
I recommend my organization as a good place to work. .90
Family-friendly benefits = .76
How satisfied are you with work/life programs (for example, health and wellness, employee assistance, elder care, and support groups)? .80
How satisfied are you with telework/telecommuting? .79
How satisfied are you with child care subsidies? .74
How satisfied are you with alternative work schedules? .72
Traditional benefits = .85
How satisfied are you with life insurance benefits? .84
How satisfied are you with long term care insurance benefits? .83
How satisfied are you with health insurance benefits? .82
How satisfied are you with retirement benefits? .78
How satisfied are you with the flexible spending account program? .70
Procedural justice = .86
Promotions in my work unit are based on merit. .82
How satisfied are you with your involvement in decisions that affect your work? .81
I can disclose a suspected violation of any law, rule or regulation without fear of reprisal. .79
Managers communicate the goals and priorities of the organization. .77
My performance appraisal is a fair reflection of my performance. .72
In my work unit, steps are taken to deal with a poor performer who cannot or will not improve. .71
Managerial trustworthiness = .90
In my organization, leaders generate high levels of motivation and commitment in the workforce. .89
My organizations leaders maintain high standards of honesty and integrity. .87
I have a high level of respect for my organizations senior leaders. .87
Overall, how good a job do you feel is being done by your immediate supervisor/team leader? .81
I have trust and confidence in my supervisor. .79
Goal clarity
I know how my work relates to the agencys goals and priorities.
Performance-oriented culture = .85
Awards in my work unit depend on how well employees perform their jobs. .90
In my work unit, differences in performance are recognized in a meaningful way. .89
Pay raises depend on how well employees perform their jobs. .84
In my most recent performance appraisal, I understood what I had to do to be rated at different performance levels. .67
Diversity management = .81
Managers/supervisors/team leaders work well with employees of different backgrounds. .89
Policies and programs promote diversity in the workplace (for example, recruiting minorities and women, training in awareness of diversity issues, .85
mentoring).
Supervisor/team leaders in my work unit are committed to a workforce representative of all segment of society. .82
Note: The measure of variables was developed by principal factor analysis and varimax rotation methods.

The Impacts of Employee Benefits, Procedural Justice, and Managerial Trustworthiness on Work Attitudes 187