


































Economics, Law and Policy 
ISSN 2576-2060 (Print) ISSN 2576-2052 (Online) 

Vol. 7, No. 1, 2024 

www.scholink.org/ojs/index.php/elp 

 
 

145 

Original Paper 

Supervisory Justice, Trust in Supervisors and Employee 

Creativity: The Mediating Role of Self-Efficacy 

Xudong Deng
1
, Yuan Zheng

1
 & Yuanshi Jin

1*
 

1
 Beijing Institute of Technology (Zhuhai), Guangdong, Zhuhai, China 

*
 Jin Yuanshi, E-mail: kaylajin031@163.com 

 

Received: April 15, 2024        Accepted: May 29, 2024         Online Published: June 4, 2024 

doi:10.22158/elp.v7n1p145         URL: http://dx.doi.org/10.22158/elp.v7n1p145 

 

Abstract 

This study examines the relationship between supervisory impartiality, trust in supervisors, and 

employee creativity within financial enterprises. These factors significantly influence employee morale 

and efficiency. Our research aims to provide actionable recommendations for optimizing enterprise 

management through theoretical insights. We first investigate the impact of supervisory justice on 

employees’ trust in their superiors, finding that fair supervision enhances trust, which in turn boosts 

employees’ confidence and efficiency at work. Employee creativity is crucial for achieving 

organizational goals; fostering creativity can lead to more efficient business operations and improved 

management practices. A key focus of our research is the mediating role of self-efficacy, defined as an 

employee’s belief in their ability to successfully complete tasks. We explore how self-efficacy bridges 

the gap between supervisory impartiality, trust in supervisors, and employee creativity. Our findings 

suggest that a just work environment provided by supervisors enhances employees’ self-efficacy, 

resulting in greater confidence and a willingness to engage in creative work. In summary, this study 

explores these relationships within financial firms. By understanding these dynamics, companies can 

create a fair work environment, enhancing employee satisfaction and efficiency. We recommend that 

enterprise managers foster a just supervisory environment to boost employees’ self-efficacy and 

support the achievement of corporate goals. 

Keywords 

supervisory justice, trust in supervisors, employee creativity, self-efficacy 

 

 

 

 



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1. Introduction 

The relationship between supervisory justice, employees’ trust in supervisors, and employee creativity 

has garnered significant attention from scholars. Additionally, the mediating role of self-efficacy in this 

dynamic is a crucial area of study. Supervisory justice involves supervisors providing a fair and just 

work environment. When employees perceive their work environment as just, their trust in supervisors 

is enhanced, which subsequently improves their creativity at work. Self-efficacy, acting as a mediator, 

boosts employees’ confidence to complete tasks effectively, ultimately enhancing corporate 

performance. 

Corporate performance is closely tied to individual employee performance, which can be categorized 

into in-role and out-of-role performance. In-role performance refers to tasks completed as per the 

enterprise's arrangements, while out-of-role performance involves tasks initiated by employees beyond 

their assigned duties. Employee self-efficacy, the belief in one’s ability to successfully complete tasks, 

plays a critical role in both types of performance. 

Generally, a fair supervisory system is likely to increase employees’ trust in their supervisors and 

enhance their creativity. Positive feedback from supervisors further bolsters employees’ self-efficacy. 

This study aims to examine the impact of supervisory justice on employees’ trust in supervisors and 

their creativity, with a focus on the mediating role of self-efficacy within financial firms. By exploring 

how supervisory justice influences the relationship between employees and supervisors, we seek to 

provide insights for improving overall firm performance. 

 

2. Theoretical Background 

Supervisor Justice means that the supervisors treat subordinates with fairness and respect. Supervisory 

justice mainly has the following characteristics and behaviors: A fair supervisor actively listens to their 

subordinates, encourages open dialogue, and values their input and perspectives. They create a safe and 

inclusive environment where everyone feels comfortable expressing their opinions and concerns. They 

will also provide timely and constructive feedback to help subordinates improve their performance. 

They focus on specific behaviors and outcomes, offering guidance and support to facilitate growth and 

development. In addition, a fair supervisor communicates expectations, goals, and feedback clearly and 

effectively to their subordinates. They ensure that instructions, policies, and decisions are transparent 

and easily understood by everyone，which is defined as supervisory informational justice (INJ). It is 

defined as the extent to which supervisor provides adequate explanations to the sub-ordinates about 

various decisions at the workplace (Greenberg, 1993). 

Employee creativity refers to the ability of individuals within an organization to generate new and 

innovative ideas, solutions, and approaches in their work. It involves the generation, application, and 

implementation of novel and valuable ideas that contribute to the organization’s goals and objectives. 

By harnessing employee creativity, organizations can drive innovation, adapt to change, and gain a 

competitive edge in the marketplace.  



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Self-efficacy, which refers to individuals’ beliefs in their own capabilities to organize and execute the 

courses of action required to produce given attainments, employees with higher self-efficacy are more 

likely to believe in their ability to generate and implement creative ideas, leading to higher levels of 

creative performance. Self-efficacy influences the choices people make, the effort they put forth, and 

how long they persist in the face of difficulties. Moreover, self-efficacy is not static; it can be 

developed through mastery experiences, vicarious experiences (observing others), social persuasion, 

and interpretation of physiological states. As a key determinant of motivation and behavior, 

self-efficacy plays a crucial role in shaping individuals’ lives and their ability to achieve success and 

well-being. 

 

3. Development Status 

In this thesis, we mainly discuss the relationship between the three by analyzing the current situation of 

the financial industry. The main reason for choosing the financial industry as the object of analysis is 

that the industry is a service industry, in which supervisors and employees are more relevant, which 

makes it more convenient for us to explore the complex relationship among the three. Goldman Sachs, 

a global financial giant, exemplifies the relationship between supervisory justice, trust in supervisors, 

employee creativity, and self-efficacy in practice.  

Previous research consistently demonstrates the significant impact of supervisory justice on various 

employee outcomes, including job satisfaction, organizational commitment, and performance (Colquitt, 

2001; Greenberg, 1993). Goldman Sachs has made it a priority to build a fair and equitable culture 

among its employees. The company has stringent ethical guidelines and conduct standards to ensure 

that both management and employees are treated fairly. Performance evaluations and promotion 

mechanisms at Goldman Sachs are perceived as transparent and fair, based on objective criteria and 

meritocracy principles. These authentic leadership characterized by integrity, commitment to core 

values, objectivity in making decisions and relational transparency were found to promote employee 

trust (Hassan & Ahmed, 2011). Goldman’s managers also demonstrate professionalism and leadership, 

employees trust their leaders to take appropriate actions to ensure the success of the organization and 

their well-being. Just as Colquitt (2001) said, by emphasizing distributive justice, procedural justice, 

interpersonal justice and information justice, it puts forward a comprehensive framework for 

understanding supervisory justice. Studies have found that these dimensions influence employees’ 

perceptions of fairness and trust in their supervisors.  

Supervisory justice can not only enhance employees’ trust in leaders, but also increase their sense of 

self-efficacy. Self-efficacy, defined as an individual’s belief in their capability to perform specific tasks, 

has been identified as a crucial mediator in the relationship between contextual factors and employee 

outcomes (Bandura, 1977). The “contextual factors” refers to supervisory impartiality, and the 

“employee outcome” refers to employee creativity. Previous studies have concluded that unlike 

domain- and creativity-relevant skills that also may facilitate one’s creativity, intrinsic motivation is 



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more variable and subject to the influence of one’s work environment (Amabile, 1988; Amabile, 1996). 

After the completion of each task, the leadership of Goldman Sachs gives fair and reasonable feedback 

and evaluation to every employee, helps them understand their own advantages and room for 

improvement, enhances their confidence to better complete the next job, and increases their sense of 

self-efficacy. In addition, the fair management style of Goldman Sachs also provides fair opportunities 

and resources to every employee. In such a workplace environment of equality and healthy competition, 

employees’ sense of self-efficacy has been further improved. Finally, it is worth noting that the 

leadership inspires confidence and self-efficacy in employees by demonstrating fair, honest and upright 

behavior and values. When employees have a sufficient sense of self-efficacy, their potential creativity 

is stimulated. This is because when they believe they can do a job well, they have enthusiasm and 

motivation for their work. This passion drives them to think constantly, resulting in a constant stream 

of new creations. 

 

4. The Relationship between Supervisory Justice, Trust in Supervisor and Employee Creativity 

4.1 Supervisory Justice Tend to Improve the Trust in Supervisor of Employees 

Social exchange theory posits that individuals engage in social interactions based on the expectation of 

reciprocity and fairness. When supervisors treat employees fairly—by providing clear procedures, 

respectful communication, and equitable resource allocation—employees perceive this as a positive 

exchange. In return, they develop trust in their supervisors (Chernyak-Hai & Rabenu, 2018). 

Supervisory justice encompasses aspects such as procedural fairness (fair decision-making processes), 

interpersonal fairness (respectful treatment), and informational fairness (transparent communication), 

all of which align with the principles of social exchange theory. When employees experience fair 

treatment, they are more likely to trust their supervisors (Iqbal, 2018). 

Trust is a fundamental component of high-quality leader-employee relationships. When supervisors 

exhibit fairness, consistency, and transparency, employees perceive them as trustworthy, fostering trust 

(Yu, Zlatev & Berg, 2021). Supervisory justice directly influences the quality of the leader-employee 

relationship. Employees who perceive their supervisors as just and ethical are more likely to trust them, 

leading to stronger bonds and increased cooperation (Cai & Zheng, 2023). 

4.2 Trust in Supervisor Indicates a Positive Effect on Self-Efficacy of Employees 

Self-efficacy refers to an individual’s belief in their ability to accomplish specific tasks. Employees 

who are confident in their capabilities are motivated to overcome obstacles they encounter at work. 

Self-efficacy is a key factor influencing behavior, motivation, and social adjustment. Employees with a 

high sense of self-efficacy are more likely to believe in their success and are therefore more willing to 

take on challenges and innovate (Bandura, 1977). 

In today’s dynamic work environment, employees face numerous social demands and challenges, such 

as building relationships, presenting work to colleagues or leaders, participating in various social 

activities, and seeking help from others (Fan, Litchfield, & Islam, 2013). Trust in supervisors enhances 



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employees’ self-efficacy in financial firms, and verbal persuasion by leaders further strengthens this 

trust. Verbal persuasion involves leaders providing realistic and motivating encouragement, which 

helps employees believe in their ability to perform tasks effectively. Unrealistic or overly flamboyant 

persuasion can be counterproductive (Bandura, 1977). 

When employees fully trust their leaders, their belief in their ability to complete tasks significantly 

increases. Additionally, professionals in the financial sector often learn new strategies and skills by 

observing the behavior and outcomes of their peers. This type of observational learning is crucial for 

financial innovation and decision-making processes. 

4.3 Self-efficacy Leads to an Apparent Improvement in the Creative Self-Concept of Employees 

Self-efficacy positively impacts employees’ innovative behavior. Employees with high self-efficacy are 

more inclined to engage in innovative activities, enhancing their creative self-concept (Slåtten, 2014). 

Self-efficacy is a well-known predictor of creative ability and performance. It not only forecasts 

creative performance but also extends beyond the predictive role of occupational self-efficacy. 

Research shows that individuals confident in their ability to succeed in a particular area (i.e., those with 

high self-efficacy) tend to perform better on creative tasks. This effect surpasses confidence in one’s 

ability to perform job-specific tasks. In other words, self-efficacy predicts not only how well a person 

will perform in their routine work but also how they will perform in new situations requiring creative 

thinking and problem-solving. This is because self-efficacy involves a belief in one’s abilities, 

motivating individuals to explore new approaches and innovative solutions. 

4.4 How Self-Efficacy Mediates between Supervisory Justice, Trust in Supervisors and Employee 

Creativity 

Self-efficacy serves as a mediating variable for the effects of supervisory justice and trust in 

supervisors on employee creativity. When employees perceive fair supervision and develop trust in 

their supervisors, their self-efficacy increases, which in turn stimulates their creativity (Zhang & Zhou, 

2014). 

Feedback-seeking behavior is a significant predictor of employee creativity. Positive feedback from 

supervisors enhances employees’ trust in their supervisors. Self-efficacy influences employees’ 

creativity by affecting their feedback-seeking behavior, which subsequently impacts their creativity. 

This indicates that self-efficacy mediates the relationship between supervisory fairness, trust in 

supervisors, and employee creativity (Chen & Zhang, 2017). 

Therefore, self-efficacy mediates the relationship between supervisory justice, trust in supervisors, and 

employee creativity. Employees working in environments characterized by supervisory justice and trust 

are more likely to experience increased self-efficacy. This heightened self-efficacy boosts their 

confidence in accomplishing tasks and contributes to achieving organizational goals. 

 

 

 



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5. Implication and Recommendation 

Supervisory justice refers to the fairness and impartiality exhibited by regulators or supervisors within 

financial enterprises towards the management under their purview. This encompasses actions taken by 

regulators in formulating and enforcing rules, policies, as well as addressing instances of 

non-compliance. Such fairness should be demonstrated through consistency, transparency, and 

equitable treatment of all stakeholders, ensuring the reasonableness and fairness of regulatory actions to 

uphold market stability and credibility. In the management of financial firms, regulatory justice is 

relevant and necessary to maintain integrity, transparency and fairness. 

The interaction between supervisors and subordinates can significantly influence the attitudes and 

behaviors of both parties and produce reciprocal information. When supervisors treat all of their 

employees fairly and transparently, employees with high justice perceptions feel that they are treated 

with respect and esteem (interpersonal justice) (Bies & Moag, 1986) and are provided with 

explanations or clarifications (informational justice) (Shapiro, Buttner, & Barry, 1994). Upon receiving 

these signals, subordinates will develop the perception that the supervisor has fulfilled his/her moral 

obligation in treating them with fairness and respect, thereby creating an obligation for the subordinate 

to reciprocate. This stimulates the subjective initiative of employees, improves their enthusiasm for 

work, and the energy for work further stimulates their potential creativity. Not only that, but 

supervisory impartiality also increases employees’ confidence in their own abilities because they feel 

they are being treated fairly in the organization and that their efforts and contributions will be fairly 

evaluated and rewarded. Moreover, strict regulation has discouraged unethical behavior and financial 

misconduct within companies. Transparent regulation also promotes a stable financial environment and 

reduces the risk of market disruptions or crises. 

Certainly, in addition to the impact on internal staff, fair regulatory oversight instills confidence among 

investors and stakeholders, ensuring their interests are protected. Fair supervision makes investors 

believe that their funds are protected and the market operates on a fair basis. Through the supervision 

and intervention of supervisors to their subordinates, the emergence of misconduct and systemic risks 

can be prevented, thus reducing the possibility of instability in the financial market and protecting the 

interests of investors. 

To enhance regulatory justice in financial institutions, we propose the following recommendations:  

Firstly, it is crucial for financial firms to establish well-defined guidelines and regulations that outline 

the criteria by which supervisors should evaluate employees’ conduct. These guidelines and regulations 

should prioritize principles such as fairness, transparency, and consistency to ensure that supervisors’ 

assessments remain uninfluenced by personal biases or other improper factors.  

Secondly, it is imperative to provide comprehensive training programs for supervisors on the 

significance of impartiality and how to effectively conduct fair evaluations. This training should 

encompass ethical knowledge, conflict resolution skills, as well as identification and management of 

cognitive biases.  



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Additionally, financial companies ought to foster a transparent work environment where employees can 

comprehend the decision-making processes and standards upheld by their supervisors. It also makes 

employees feel respect and trust in each other and increases their sense of self-efficacy.  

Simultaneously, an effective accountability system must be established to hold supervisors responsible 

for their actions and decisions while providing them with necessary reviews and feedback. 

Most importantly, fostering a culture of diversity and inclusion is essential in mitigating bias and 

discrimination while enhancing fairness between supervisors and employees. Financial firms need to 

take proactive measures ensuring equitable treatment for all employees irrespective of race, gender, 

sexual orientation religion or any other identity characteristics. Managers should also ensure that all 

employees are treated fairly in terms of opportunities and treatment, without favoritism or 

discrimination against anyone, which also helps to improve employees’ self-efficacy. 

Absolutely sure, effective communication between superiors and subordinates plays a pivotal role in 

establishing an efficient supervision mechanism along with constructive feedback channels aimed at 

monitoring supervisor behavior & decision-making whilst offering timely guidance when needed. This 

approach will help rectify inappropriate behavior, reinforce impartiality’s importance, and improve 

supervisor impartiality towards employees. At the same time, communication between superiors and 

subordinates also includes supervisors providing timely feedback and support to employees, helping 

employees develop skills and overcome difficulties, so as to enhance their self-efficacy. 

 

6. Conclusion 

In this study, we investigated the effects of supervisory justice on employee trust and creativity, with a 

particular focus on the mediating role of self-efficacy. Our results suggest that supervisory justice 

significantly enhances employees’ trust in their leaders, which in turn positively influences their 

creativity. Additionally, self-efficacy plays a crucial mediating role in this process; employees with 

higher self-efficacy are more confident in their ability to complete their tasks and, consequently, exhibit 

greater creativity. 

We concentrated on the financial industry, analyzing how supervisory justice impacts employee trust 

and creativity and highlighting the mediating role of self-efficacy. Our findings underscore the 

importance of supervisory justice in today’s fast-paced financial enterprises. It not only strengthens 

employees’ trust in their leaders but also stimulates their creativity by enhancing their self-efficacy. 

The study demonstrates that financial enterprises can boost employee self-efficacy by ensuring fair 

supervision, thereby fostering greater creativity and contributing to the achievement of the company’s 

business goals. These findings are particularly relevant for the financial industry, suggesting that 

creating a just and supportive work environment can lead to more innovative and productive 

employees. 

Future research could explore the implementation of these approaches in different sectors within the 

financial industry to maximize employee self-efficacy and creativity. Such studies could provide 



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further insights into optimizing supervisory practices to enhance overall organizational performance. 

 

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