Procedural justice, perceived diversity, and job performance: The mediating roles of self-efficacy and work engagement

The rapid digital transformation in the banking industry has increased work complexity and performance demands for employees. In response to these challenges, organizational factors, such as procedural justice and perceived diversity, have become increasingly important because they may influence employees' psychological conditions and ultimately affect their job performance. Therefore, the current study is an attempt to evaluate the influence of procedural justice and perceived diversity on job performance by means of self-efficacy and work engagement among employees working in banks in Indonesia. In the context of quantitative methodology, data were collected with the help of a questionnaire for 101 banking employees using purposive sampling technique. Data analyses were performed by utilizing partial least square-structural equation modeling (PLS-SEM) using SmartPLS. Findings of the empirical investigation show that procedural justice and perceived diversity have significant positive influences on both self-efficacy and work engagement. Moreover, self-efficacy and work engagement have a positive effect on job performance. But the mediational analysis shows that self-efficacy and work engagement do not have significant mediating effect on the indirect influence of procedural justice and perceived diversity on job performance. Overall, this study highlights the importance of fairness and inclusivity in strengthening employees' psychological resources and improving performance in the banking industry.