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Organizational Justice and Employee Retention: A Theoretical Framework for Malaysian and Indonesian Higher Learning Institutions

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  • Shariff Harun
  • Septi Fahmi Choirisa
  • Nosica Rizkalla

Abstract

Employee retention has emerged as a pressing concern within knowledge-based organizations due to the non-substitutability of individual abilities and their substantial influence on organizational achievements. Therefore, the retention of proficient staff is a crucial strategic approach, particularly for Malaysian and Indonesian Higher Learning Institutions (HLIs). Thus, this study seeks to understand the antecedents that could influence HLIs’ workforce retention. To achieve the objective, a content analysis approach is used to discover potential antecedents of fairness that affect HLIs’ workforce retention. The Organizational Justice Theory is then employed as the theoretical foundation to examine and synthesize the antecedents. Three antecedents are addressed during the examination and discussion: distributive justice, procedural justice, and interactional justice. Through this, three organizational justice propositions are offered, and the framework developed in this conceptual study highlights the retention practices and instigators. This study's conceptual nature provides preliminary insights into the employees’ retention experience in the Malaysian and Indonesian HLI context. This study contributes to the body of knowledge by illuminating the antecedents that promote employee retention, resulting in a practical framework that can be used by the HLIs to formulate strategies and policies to reduce the financial and business risk due to the high employee attrition rate. Subsequently, achieving the United Nations Sustainable Development Goals of good health and well-being (Goal 3) and quality education (Goal 4).

Suggested Citation

  • Shariff Harun & Septi Fahmi Choirisa & Nosica Rizkalla, 2023. "Organizational Justice and Employee Retention: A Theoretical Framework for Malaysian and Indonesian Higher Learning Institutions," Information Management and Business Review, AMH International, vol. 15(3), pages 280-288.
  • Handle: RePEc:rnd:arimbr:v:15:y:2023:i:3:p:280-288
    DOI: 10.22610/imbr.v15i3(SI).3484
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    References listed on IDEAS

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    1. Park, Jin Yong & Kim, Changju, 2023. "The role of organizational justice and social interaction in mitigating the negative effects of high-performance member retailers on strategic integration," Journal of Retailing and Consumer Services, Elsevier, vol. 72(C).
    2. Maria Piotrowska, 2022. "Job attributes affect the relationship between perceived overqualification and retention," Future Business Journal, Springer, vol. 8(1), pages 1-29, December.
    3. Yu Ghee Wee & Kamarul Zaman Ahmad & Yap Sheau Fen, 2014. "Organisational Justice and its Role in Promoting Citizenship Behaviour among Hotel Employees in Malaysia," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(2), pages 79-104, July.
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