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The Impact of Organizational Justice on Employee's Job Satisfaction: The Malaysian Companies Perspectives

Author

Listed:
  • Choong Kwai Fatt
  • Edward Wong Sek Khin
  • Tioh Ngee Heng

Abstract

Problem statement: This research study analyzed the impact of organizational justice as encompassed by two components, namely distributive justice and procedural justice on employee’s job satisfaction, organizational commitment, and turnover intention. This study revealed a positive and significant relationship showing that the foundation of an employee’s job satisfaction and organizational commitment is within the application of both distributive and procedural justice, and this supports a significant negative relationship to turnover intention. Approach: This study included the design and distribution of a self-administered questionnaire to 300 Malaysian employees working for small and middle size companies in the Malaysia, Klang Valley. The sample consisted of managerial and non-managerial employees who volunteered to participate in this study. The results supported the hypothesis that distributive and procedural justice has significant relationship with employee’s job satisfaction, organizational commitment and turnover intention. Result: This finding implied that the higher the level of employee’s perception towards fairness to the means used to determine outcomes (procedural justice) and fairness of the outcomes employees receive (distributive justice) tended to increase the level of employees’ job satisfaction, organizational commitment while reduces turnover intention. Therefore, organizations that take a proactive approach to understand employee’s perceptions of distributive and procedural justice, and provide appropriate working environment can potentially reap benefits including cost associated to employee retentions. Conclusion: The findings in this study would help managers and business organization in Malaysia to formulate strategies that involved work factors such as distributive and procedural justice to improve the management of human resource development. These strategies would help in influencing positive behaviors among employees, and hence achieve effectiveness and high productivity in the organization. Therefore, it was worth the effort for the organization to train and educate their managers on the impact of perceptions of organizational justice on the motivation and commitment of their employees.

Suggested Citation

  • Choong Kwai Fatt & Edward Wong Sek Khin & Tioh Ngee Heng, 2010. "The Impact of Organizational Justice on Employee's Job Satisfaction: The Malaysian Companies Perspectives," American Journal of Economics and Business Administration, Science Publications, vol. 2(1), pages 56-63, March.
  • Handle: RePEc:abk:jajeba:ajebasp.2010.56.63
    DOI: 10.3844/ajebasp.2010.56.63
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    Citations

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    Cited by:

    1. Syeda Umaima Riaz & Syed Adeel Hussain Shah & Mariam Shahid, 2023. "The Impact of Team Effectiveness, Affective Commitment, Opportunity, Fair Treatment, and Job Involvement on Participative Leadership," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 9(2), pages 371-381.
    2. Twumasi Evelyn & Addo Belinda, 2020. "Perceived Organisational Support as a Moderator in the Relationship Between Organisational Justice and Affective Organisational Commitment," Economics and Culture, Sciendo, vol. 17(2), pages 22-29, December.
    3. Ologbo C. Andrew & Saudah Sofian, 2011. "Engaging People who Drive Execution and Organizational Performance," American Journal of Economics and Business Administration, Science Publications, vol. 3(3), pages 569-575, November.
    4. Maitixirepu Jilili & Aliya Aini, 2023. "Examining the Moderating Effect of Occupational Status on the Association of Organizational Justice and Job Satisfaction," Public Organization Review, Springer, vol. 23(1), pages 97-111, March.
    5. Li‐Fei Chen & Donna Larissa Khuangga, 2021. "Configurational paths of employee reactions to corporate social responsibility: An organizational justice perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(1), pages 389-403, January.
    6. Muhammamd Shaukat Malik & Fareeha Malik` & Laraib Aslam, 2023. "Effect of Human Resource Management Practices and Corporate Social Responsibility Disclosure on Employee Outcomes: Examining the Moderating Role of Trust in Management," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(3), pages 835-843.
    7. Maria Piotrowska, 2022. "Job attributes affect the relationship between perceived overqualification and retention," Future Business Journal, Springer, vol. 8(1), pages 1-29, December.

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