Perceived Organizational Injustice, Job Satisfaction, Organizational Commitment, and Turnover Intention: A Study of MNCs in Malaysia

  • Daisy Mui Hung Kee Universiti Sains Malaysia, Penang, Malaysia
  • Kuok Shiong Chung Broadcom Inc, Penang, Malaysia
Keywords: Organizational Injustice, Organizational Commitment, Job Satisfaction, Turnover Intention, Gender, MNCs, Malaysia

Abstract

The paper intends to examine the relationship between perceived organizational injustice, organizational commitment, and turnover intention. Besides, the paper investigates the mediating role of job satisfaction on the relationship between organizational injustice, organizational commitment, and turnover intention. The presence of gender as a moderating role is also tested. Testing hypotheses on 203 MNCs employees, the paper finds that distributive and interactional injustice are associated with organizational commitment, job satisfaction, and higher turnover intention. Procedural injustice has a direct negative influence on job satisfaction. Job satisfaction has a mediating effect on the relationship between organizational injustice, organizational commitment, and turnover intention. Gender is found to have a moderating effect on the relationship between organizational injustice and turnover intention. This study's findings serve as guidelines to help managers better understand organizational behaviors, specifically on how to minimize employee turnover, improve job satisfaction and organizational commitment, and make better decisions in managing the perception of distributive and interactional injustice when dealing with their employees.

References

Abraham, R. (1999). The impact of emotional dissonance on organizational commitment and intention to turnover. The Journal of Psychology, 133(4), 441-455. https://doi.org/10.1080/00223989909599754

Al-Dmour, H., & Awamleh, R. A. (2002). Effects of transactional and transformational leadership styles of sales managers on job satisfaction and self-perceived performance of salespeople: A study of Jordanian manufacturing public shareholding companies, Dirasat. Administrative Sciences Series, 29(1), 247- 261.

Angle, H. L., & Perry, J. L. (1981). An empirical assessment of organizational commitment and organizational effectiveness. Administrative Science Quarterly, 26, 1-14. https://doi.org/10.2307/2392596

Ansari, M. A., Kee, D. M. H., & Aafaqi, R. (2007). Leader-member exchange and attitudinal outcomes: Role of procedural justice climate. Leadership and Organization Development, 28(8), 690-709. https://doi.org/10.1108/01437730710835443

Ansari, M. A., Kee D. M. H., & Aafaqi, R. (2008). Fairness of HRM practices and commitment: The mediating impact of procedural justice climate. FWU Journal of Social Science, 2, 3-17.

Bies, R. J., & Moag, J. S. (1986). Interactional justice: Communication criteria of fairness. In R. J. Lewicki, B. H. Sheppard, & M. H. Bazerman (Eds.), Research on negotiation in organizations (pp.43-55). Greenwich: JAI Press.

Bies, R. J., & Tripp, T. M. (2001). A passion for justice: The rationality and morality of revenge. In R. Cropanzano (Ed.), Justice in the workplace: From theory to practice (pp.3-26). NJ: Erlbaum.

Blau, P. (1964). Exchange and power in social life. New York: John Wiley & Sons.

Bluedorn, A. C. (1982). A unified model of turnover from organizations. Human Relations, 35, 135-153. https://doi.org/10.1177/001872678203500204

Chen, J., Silverthorne, C., & Hung, J. (2006). Organization communication, job stress, organizational commitment, and job performance of accounting professionals in Taiwan and America. Leadership and Organization Development Journal, 27(4), 242-249. https://doi.org/10.1108/01437730610666000

Cohen-Charash, Y., & Spector, P. E. (2001). The role of justice in organizations: A meta-analysis. Organizational Behavior & Human Decision Processes, 86(2), 278-321. https://doi.org/10.1006/obhd.2001.2958

Cohen, R. L. (1986). Justice: Views from the social sciences. New York: Plenum. https://doi.org/10.1007/978-1-4899-3511-3

Colquitt, J. A., Conlon, D. E., Wesson, M. J., Porter, C. O. L. H., & Ng, K. Y. (2001). Justice at the millennium: A meta-analytic review of 25 years of organizational justice research. Journal of Applied Psychology, 86(3), 425-445. https://doi.org/10.1037/0021-9010.86.3.425

Cropanzano, R., & Ambrose, M. L. (2001). Procedural and distributive justice are more similar than you think: A monistic perspective and a research agenda. In J. Greenberg & R. Cropanzano (Eds), Advances in Organizational Justice (pp.119-151). Stanford: Stanford University Press.

Cugueró-Escofet, N., Ficapal-Cusí, P., & Torrent-Sellens, J. (2019). Sustainable human resource management: How to create a knowledge sharing behavior through organizational justice, organizational support, satisfaction, and commitment. Sustainability, 11(19), 1-20. https://doi.org/10.3390/su11195419

Folger, R., & Konovsky, M. A. (1989). Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32(1), 115-130. https://doi.org/10.5465/256422

Glisson, C., & Durick, M. (1988). Predictors of job satisfaction and organizational commitment in human service organization. Administrative Science Quarterly, 33, 61- 81. https://doi.org/10.2307/2392855

Greenberg, J. (1993). The social side of fairness: Interpersonal and informational causes of organizational justice. In R. Cropanzano (Ed.), Justice in the workplace: Approaching fairness in human resource management. Hillsdale, NJ: Erlbaum.

Greenberg, J., & Baron, R. A. (1997). Behavior in organizations: Understanding and managing the human side of work (6th ed.). Upper Saddle River, NJ: Prentice-Hall.

Griffeth, R. W., Hom, P. W., & Gaertner, S. (2000). A meta-analysis of antecedents and correlates of employee turnover: Update, moderator tests, and research implications for the next millennium. Journal of Management, 26(3), 463-488. https://doi.org/10.1177/014920630002600305

Horn, P., & Griffeth, R. (1995). Employee turnover. South-Western College, Cincinnati, OH.

Kee, D. M. H., Ansari, M. A., & Aafaqi, R (2004). Fairness of human resource management practices, leader-member exchange, and organizational commitment. Asian Academy of Management Journal, 9(1), 99-120.

Kee, D. M. H., Ching, S. L., & Ravindran, T. (2020). The influence of HIHRM practices on employee attitude and behavior. International Journal of Advanced Science and Technology, 29(8), 2438-2447.

Kaul, S., & Singh, A. (2017). Organizational justice as a predictor of organizational commitment in automobile dealerships in Delhi, national capital region. Journal of the Indian Academy of Applied Psychology, 43(2), 230-238.

Kauppila, O. P., Ehrnrooth, M., Makela, K., Smale, A., Sumelius, J., & Vuorenmaa, H. (2018). Serving to help and helping to serve: Employee reactions to HR manager servant leadership. In Academy of Management Proceedings. NY: Briarcliff Manor. https://doi.org/10.5465/AMBPP.2018.113

Lance, C. E. (1991). Evaluation of a structural model relating job satisfaction, organizational commitment and precursors to voluntary turnover. Multivariate Behavioral Research, 1, 137-162. https://doi.org/10.1207/s15327906mbr2601_7

Lind, E. A., Kanfer, R., & Earley, P. C. (1990). Voice, control, and procedural justice: Instrumental and non-instrumental concerns in fairness judgments. Journal of Personality and Social Psychology, 59, 952-959. https://doi.org/10.1037/0022-3514.59.5.952

Luo, Z., Marnburg, E., & Law, R. (2017). Linking leadership and justice to organizational commitment: The mediating role of collective identity in the hotel industry. International Journal of Contemporary Hospitality Management, 29(4), 1167-1184. https://doi.org/10.1108/IJCHM-08-2015-0423

Major, B., & Deaux, K. (1982). Individual differences in justice behavior. In J. L. Greenberg & R. L. Cohen (Eds.), Equity and justice in social behavior. New York: Academic Press. https://doi.org/10.1016/B978-0-12-299580-4.50008-2

Mannheim, B., Baruch, Y., & Tal, J. (1997). Alternative models for antecedents and outcomes of work centrality and job satisfaction of high-tech personnel. Human Relations, 50, 1537-1562. https://doi.org/10.1177/001872679705001204

Mitchell, T., Holtom, B., Lee, T., Sablynski, C., & Erez, M. (2001). Why people stay: using job embeddedness to predict voluntary turnover. Academy of Management Journal, 44(6), 1102-1121. https://doi.org/10.5465/3069391

Mobley, W. H., Horner, S. O., & Hollingsworth, A. T. (1978). An evaluation of precursors of hospital employee turnover. Journal of Applied Psychology, 63, 408-414. https://doi.org/10.1037/0021-9010.63.4.408

Moorman, R. H. (1991). Relationship between organizational justice and organizational citizenship behaviors: Do fairness perceptions influence employee citizenship? Journal of Applied Psychology, 76(6), 845-855. https://doi.org/10.1037/0021-9010.76.6.845

Mowday, R. T., Porter, L. W., & Steers, R. M. (1982) Employee-organization linkages: The psychology of commitment, absenteeism, and turnover. New York: Academic Press. https://doi.org/10.1016/B978-0-12-509370-5.50005-8

Mowday, R. T., & Steers, R. M. (1979). The measurement of organizational commitment. Journal of Vocational Behavior, 14, 224-247. https://doi.org/10.1016/0001-8791(79)90072-1

Niehoff, B. P., & Moorman, R. H. (1993). Justice as a mediator of the relationship between methods of monitoring and organizational citizenship behavior. Academy of Management Journal, 36(3), 527-556. https://doi.org/10.5465/256591

Paul, G. D., & Kee, D. M. H. (2018). Human resource management practices and turnover intention: The mediating role of perceived organizational support in tertiary institutions in Nigeria. International Journal of Engineering & Technology, 7, 715-722.

Paul, G. D., & Kee, D. M. H. (2020). HR, workplace bullying, and turnover intention: The mediating role of work engagement. Journal of Environmental Treatment Techniques, 8(1), 23-27.

Phillips, J., Douthitt, E., & Hyland, M. (2001). The role of justice in team member satisfaction with the leader and attachment to the team. Journal of Applied Psychology, 86, 316-325. https://doi.org/10.1037/0021-9010.86.2.316

Pillsbury, C. M., Capozzoli, L., & Ciampa, A. (1989). A synthesis of research studies regarding the upward mobility of women in public accounting. Accounting Horizons, 3(1), 63-70.

Porter, L. W., Steers, R. M., Mowday, R. T., & Boulian, P. V. (1974). Organizational commitment, job satisfaction, and turnover among psychiatric technicians. Journal of Applied Psychology, 59, 603-609. https://doi.org/10.1037/h0037335

Price, J. L., & Mueller, C. W. (1981). A causal model of turnover for nurses. Academy of Management Journal, 24, 543-565. https://doi.org/10.2307/255574

Rasch, R. H., & Harrell, A. (1990). The impact of personal characteristics on the turnover behavior of accounting professionals. Auditing: A Journal of Practice and Theory, 9(1), 90-102.

Rubel, M. R. B., & Kee, D. M. H. (2015a). Perceived fairness of performance appraisal, promotion opportunity, and nurses' turnover intention: The role of organizational commitment. Asian Social Science Journal, 11(9), 183-197. https://doi.org/10.5539/ass.v11n9p183

Rubel, M. R. B., & Kee, D. M. H. (2015b). High commitment compensation and employee turnover intention: Mediating effect of job satisfaction. Mediterranean Journal of Social Science, 6(4), 321-332.

Rubel, M. R. B., Kee, D. M. H., & Rimi, N. N. (2017). The mediating role of work-family conflict on role stressors and employee turnover intention relationship in labor-oriented organizations. Global Business Review, 18(6), 1384-1399. https://doi.org/10.1177/0972150917713061

Rubel, M. R. B., Kee, D. M. H., & Rimi, N. N. (2020). Matching people with technology: Effect of high involvement work practice on technology adaptation. South Asian Journal of Human Resources Management, 7(1), 9-33. https://doi.org/10.1177/2322093719875567

Rubel, M. R. B., Rimi, N. N., Yusof, Y., & Kee, D. M. H. (2018). High commitment human resource management practices and employee service behavior: trust in management as mediator. IIMB Management Review, 30(4), 316-329. https://doi.org/10.1016/j.iimb.2018.05.006

Steers, R. (1977). Antecedents and outcomes of organizational commitment. Administrative Science Quarterly, 22, 46-56. https://doi.org/10.2307/2391745

Sweeney, P. D., & McFarlin, D. B. (1997). Process and outcome: Gender differences in the assessment of justice. Journal of Organizational Behavior, 18, 83-98. https://doi.org/10.1002/(SICI)1099-1379(199701)18:1<83::AID-JOB779>3.0.CO;2-3

Vandenberg, R., & Lance, C. (1992). Examining the causal order of job satisfaction and organizational commitment. Journal of Management, 18(1), 153 - 167. https://doi.org/10.1177/014920639201800110

Williams, L. J., & Hazer, J. T. (1986). Antecedents and consequences of satisfaction and commitment in turnover models: A re-analysis using latent variable structural equation methods. Journal of Applied Psychology, 71, 219-231. https://doi.org/10.1037/0021-9010.71.2.219

Published
2021-08-12
How to Cite
Daisy Mui Hung Kee, & Kuok Shiong Chung. (2021). Perceived Organizational Injustice, Job Satisfaction, Organizational Commitment, and Turnover Intention: A Study of MNCs in Malaysia. International Journal of Business and Society, 22(2), 1047-1065. https://doi.org/10.33736/ijbs.3781.2021