Impact of Job Satisfaction, Perceived Organizational Justice and Employee Empowerment on Organizational Commitment in Semi-Government Organizations of Pakistan

Abstract

This study aims to analyze the impact of organizational justice, employee's job satisfaction and employee empowerment on organizational commitment of semi government organizations employees. A random sample of 148 employees of Civil Aviation Authority was selected with the help of employee's job satisfaction, their perception regarding empowerment provided to them by their organization and justice prevailing in their organization was evaluated. The results of these variables were then utilized to probe their effect on organizational commitment. [PUBLICATION ABSTRACT]

Headnote

ABSTRACT

This study aims to analyze the impact of organizational justice, employee's job satisfaction and employee empowerment on organizational commitment of semi government organizations employees. A random sample of 148 employees of Civil Aviation Authority was selected with the help of employee's job satisfaction, their perception regarding empowerment provided to them by their organization and justice prevailing in their organization was evaluated. The results of these variables were then utilized to probe their effect on organizational commitment.

Keywords: job satisfaction, organizational commitment, organizational justice, employees' empowerment, CAA Pakistan.

INTRODUCTION

Organizational commitment is termed as one of the foremost goals considering the efforts of organization regarding maintenance of its existence (Yavuz, 2010). It is the level of allegiance an employee feels for his employer (Meyer, 97). Employees with greater level of organizational commitment are more productive, compatible, have more loyalty towards his work, possesses more responsibility and satisfaction resultantly cost lesser to the organization (Balci, 2003). Although the relationship and impact of employees job satisfaction, organizational justice and employee empowerment on organizational commitment were observed individually by numerous researchers but collective impact of these three variables on organizational commitment requires to be explored. Job satisfaction and Organizational commitment are extensively explored factors in the literature of management (Bodla & Danish, 2009; Bodla & Naeem, 2009a; Bodla & Naeem, 2009b; Parker et al, 2005; Allen & Meyer, 1990) that are the basics of employees' performance. Previous studies related to organizational justice and organizational commitment reported that the level of perceived fairness engages in an important role in commitment of the employees' with their respective organizations (Adams, 1965; Arif Hassan, 2002; Cropanzano and Randall, 1993; Folger and Konovsky; 1989, Greenberg, 1993; McFarlin and Sweeney, 1992; Sweeney and McFarlin, 1997). Similarly there are various studies that explored the relationship between employees empowerment and organizational commitment (Baker,Keltner. Denise, 2000; Mowday, R.T., R.M.Steers, and L.W.Porter, 1982; Yoon, Jeongkoo . 2001; Mishra and Spreitzer, Gretchen Marie, 2006 etc). In this study as described earlier, an effort is made to measure the effects of three important factors of management i.e job satisfaction, organizational justice and employee's empowerment on organizational commitment that may be helpful for managerial decisions and for HR related individuals. Civil Aviation Authority of Pakistan is chosen as sample organization for our study mainly because of its relatively large and diverse manpower.

LITERATURE REVIEW

ORGANIZATIONAL COMMITMENT

Organization commitment indicates the employee's emotional affection to, association with and attachment with his organization. In general, it can be considered as tri-dimensional construct consisting of normative, continuance and affective commitments (Allen and Meyer, 1996; Karrasch, 2003; Turner and Chelladurai, 2005; Greenberg, 2005; Boehman, 2006; Canipe, 2006). It is considered that employees who are affectively committed remain consistent working with immense devotion voluntarily, continuance commitment assures that employees maintain the membership of their organization, however employees who remain normally committed generally sense compulsion on their end to remain in their organization. Defining organizational commitment, Porter et al., (1974) explained a firm conviction in and recognition of the organizations goals and principles, keenness to exert substantial efforts on behalf of their organization and specific desire to retain their organizational membership. As defined by Jans (1989) as the level employees accept, internalize along with perception of their role built upon Organizational principles and goals. Employees remain committed to their organizations if they own and retain conviction related to the goals, principles and mission of their organizations. Secondly if they are jointly prepared to apply their committed efforts for the attainment of the goals of their organizations goals and lastly if they possess concentrated desire to persist serving in respective organizations (Mowday, Steers, & Porter, 1982; Jans, 1989; Hunt & Morgan, 1994; Robbins & Coulter, 2003). Although there is concurrence between scholars that the conception relating organizational commitment notifies the bond of an employee with ones organization, there exists a controversy relating to the kind of organizational commitment (Koys, D., 2001). Organizational commitment indicates an employeès affiliation to his organization as an undivided, a whole. It is surely unlike to other commitment forms such as job involvement, career commitment, union commitment and work ethics which is based upon on principles, values, job, career and unions (Baker,2000). Researches found that commitment is influenced by several factors like employee empowerment, job satisfaction, and organizational justice. Alajmi R., 1997 found out that organizational commitment is significantly correlated with employees' perceptions of just treatment and fair principles and procedures.

The association between job satisfaction and organizational commitment is also explored in several professions. Majority of these studies regardless of the professions established a positive significant relationship between them.

The association between commitment and employee empowerment as studied by Noorliza, 2006 explained that Employee empowerment besides benefiting several other factors boosts organizational commitment. In the same way ahead Ongori, 2008 revealed that employee empowerment constructs commitment and builds an intellect of belonging. He further narrates that employee empowerment has benefited several organizations which ultimately enhances employee commitment to his organization. According to him commitment means obligation and a duty intellect an employee possesses for his organization and employees must remain committed to the organizations that nurture the related processes of employee empowerment.

JOB SATISFACTION

Comparison of actual outcome with desired outcome based upon employee effective reactions to his job (Stone, Cranny and Smith; 1992). It is normally known as the multifaceted construct that constitutes employees feelings/ emotions related to both extrinsic as well as intrinsic job/ elements (Howard and Frink; 1996). Arguments of Porter and Steers, 1973 suggests that employees job satisfaction is the cumulative level of fulfilled worker expectations. Part of the interest entrusted in job satisfaction is primarily because of its impact upon turnover, employee commitment, absenteeism and intention to quit (Agho, Moeller and Prince; 1993). Tests regarding casual ordering of job satisfaction and organizational commitment showed that the effects of variety of antecedents on organizational commitment were moderated by their effect on job satisfaction (Tsui, Egan, O'Reilly; 1992).

Job satisfaction as per Kovach, 1977 has been identified as a part or component of organizational commitment. LaLopa (1997) efficiently utilized the Organizational Commitment Questionnaire for evaluation of three hundred non-supervisory resort employees' commitment levels. Further he developed a scale of Resort Job Satisfaction using the items of scale by adopting items from earlier studies. His findings presented further confirmation that job satisfaction is a significant predictor of organizational commitment. Many related studies utilizes different facets regarding satisfaction for prediction of employee attributes like organizational commitment, service quality and performance (Dienhart & Gregoire, 1993 ; Yousef, 1998; Oshagbemi, 2000a, 2000b. Also, in a later study by Yousef (2000), employee organizational commitment effects leadership behavior, which in turn was affected through job performance and satisfaction. Job satisfaction is generally considered to be a response regarding a specific job or several facets of that job. Where as, commitment is more global reaction towards an organization. Wiener (1982) explains that job satisfaction refers to an attitude related to work-related conditions, facets/ aspects of the work. Commitment on the other side suggests an attachment towards employing organization in contrast to explicit tasks, environmental factors and places where the tasks are undertaken (Mowday, et al., 1982). Discussing further job satisfaction is lesser consistent than organizational commitment. Although the daily events at place of work may create effect on employees

Job satisfaction but these momentary events may not force an employee to re-assess his attachment to entire organization (Mowday et al., 1982, p.28). Satisfied employees are likely to remain more loyal towards their organization. In general, when people get satisfied with their work, they tend to feeling of positive attitude related to their jobs. Their minds are convinced that, other work/ jobs would not prove better than the existing one. Therefore, it is not likely that they would switch their jobs. Employees desire to stay with their company and strive hard in their job. Further to this, in order to retain their existing satisfied jobs, employees would exert more and work effectively, that is valuable for the company. Therefore, for the purpose of increasing employees' commitment level, the managers may try to enhance their employees' job satisfaction level (Côté and P. Heslin, 2003). So following relationship is needed to be tested.

H1: Job satisfaction has significant impact on organizational commitment of the employees working in semi-government organization of Civil Aviation Authority of Pakistan.

ORGANIZATIONAL JUSTICE

Organizational justice indicates the examination of fairness within organizational parameters and emerges through work in social psychology focused at insight at fairness aspects in social interactions (Greenberg, 1990). Fairness provided to employees by their respective organizations is believed to be the commonly explored field and it remains the focus of several researchers. Thus organizational justice has vital implications on employees and their organizations (Greenberg, 1990b). Initial studies regarding to organizational justice remained concentrated on distributive justice. Adam (1965) in his equity theory presented this form of organizational justice.

As per equity theory, a person observes others in a societal settings, analyzes his perceived ratio of input to outcome with the ratio (same fractions) of others. If the referent ratio is similar to that of perceived ratio of his own input to outcome then Equity exists. Conversely inequity exists if there is unequal input to outcome proportion between referent and individual. The feeling of unfairness prevails that is experienced by both parties. Subsequent attempts are made by both parties to resolve this imbalance and behavioral or psychological efforts are made. Altering job performance is a behavioral change in attempt to create this balance (Raymond Loi, Ngo Hangyue and Sharon Foley, 2006). Similarly he may react psychologically by changing self or referent input to outcome proportion (Greenberg, 1990). Factors like that of organizational commitment, pay satisfaction, trust and pay satisfaction are related to distributive justice (Cohen-Charash and Spector, 2001). The focus on organizational justice then moved from distributive justice (justice related to decision outcome) to that of procedural justice(justice related to processes that subsequently transformed into outcome of decisions (Thibaut and Walker, 1975; Leventhal, 1980; Greenberg, 1990b). Scholars observed that distributive justice alone could not deal with employees fair procedure quest (Greenberg, 1990). Folger and Konovsky (1989) conducted a survey to evaluate the effect of procedural and distributive justices on 217 first-line employees regarding their decisions on pay raises. Respondents gave their opinion relating to procedural justice, distributive justice, supervisors trust, proportion of salary increase, organizational commitment and satisfaction related to pay. The results of the survey yielded that perceptions related to procedures regarding pay hikes made a distinctive contribution towards trust in supervisors and organizational commitment. Sweeney and McFarlin (1993) have précised a structural model that explained that distributive justice got related to personal-referenced outcomes like pay satisfaction and procedural justice remained related to organizational referenced outcomes like organizational commitment. The above stated two-factor organizational justice was then added with another type of justice, known as interactional justice (Bies and Moag, 1986). Aquino (1995) pointed out in his study that organizational commitment, withdrawl behavior and trust in management are the factors that are affected by interactional justice. So following relationship is needed to be tested.

H2: Perceived organizational justice in Civil Aviation Authority of Pakistan has significant impact on organizational commitment.

EMPLOYEE EMPOWERMENT

Empowerment can be defined in various ways but majority of the agreed that basic element of empowerment includes providing employees discretion and latitude regarding certain job related functions (Conger and Kanungo, 1988; Schessinger and Heskett, 1991; Bowen and Lawler,1992). Randolph (1995) explains employee empowerment by assigning the power from employer to employees. Blanchard et al. (1996) argues that empowerment does not only permits freedom to act but enhances level of responsibility as well as accountability. This highlights that management is bound to empower its employees for the purpose of employees satisfaction, motivation and commitment which ultimately assist in achieving organizational goals. Employee empowerment is prevailed by sharing information, enhancing intellectual capacity and autonomy while making decisions. Wellins et al.(1991) anticipated that an organization which empowers its employees could survive in prevailing free economy. Many development professionals of the organizations also connect employee empowerment with improved creativity (Weisbord, 1987; Senge, 1990; Wheatley, 1992). Parker and Slaughter (1995) analyzed employee empowerment through strategy of management-by-stress which forces people along with systems to the breaking point, forcing workers to stretch more. Lack of employee empowerment is believed to be a stressor for individuals and team members. Empowerment as a management practice should be practiced by managers for improvement of the organizational performance.

Employee empowerment considerably improves organizational commitment, job satisfaction, job involvement and career satisfaction (Noorliza et al., 2006). Employee empowerment realizes employees that their existence is valued in their organization and creates increased level of organizational commitment and job satisfaction (Ongori, 2008). For the improvement of employees commitment and integration towards their organization, organizations should encourage its employees for creativity, innovation and enhancement of their ranks ( Gholamreza, Borghei, Matin and Dastani, 2010). So following relationship is needed to be tested.

H3: Employee empowerment in Civil Aviation Authority of Pakistan effects significantly their organizational commitment.

THEORETICAL MODEL OF STUDY

RESEARCH METHODOLOGY

For the validation of following research hypothesis, research methodology is explained hereunder: A total of 275 survey questionnaires were distributed among employees of Civil Aviation Authority in the cities of Islamabad, Lahore and Karachi (these three stations posses about 95% of the organization's strength). These questionnaires were distributed by hand. 148 legible questionnaires out of the total were received and utilized in our study resulting overall usable rate of about 54%. Seven points Likert scale (Strongly disagree, moderately disagree, slightly disagree, neutral, slightly agree, moderately agree, strongly agree) was utilized to evaluate employees organizational commitment was constructed by Mowday et al., (1982). It was a nine itemed shortened version of the originally fifteen item organizational commitment questionnaire. Its coefficient alpha value ranged from 0.74 to 0.92. Overall job satisfaction was measured by using the scale developed by Schriesheim and Tsui (1980). It was designed on six items and measured on five points likert scale (1=strongly disagree and 5=strongly agree). Its coefficient alpha ranged from 0.73 to 0.78. Perceived organizational justice was measured on the scale developed by Parker, Baltes and Christiansen (1997).Its coefficient alpha value ranged from 0.74 to 0.88. Employee empowerment was measured utilizing the scale of Spreitzer (1995) having coefficient alpha value ranged from 0.81 to 0.87 and responses were obtained on a 7 point likert scale (1=strongly disagree and 7=strongly agree). Alpha for a combined scale for overall empowerment was 0.72.

DATA ANALYSIS AND FINDINGS

Descriptive statistics was used for the study of table-1.

About 69% of our respondents fell between the ages of 20 to 40 years. Two third of the total respondents were male with reasonable level of representation of female as well, that was more than 25%. Close to 72% of the total respondents received the monthly income between 20,000 to 40,000 Rs. Majority of the employees of this organization were having good qualification, i.e close to 80% of the total respondents were having qualification of Bachelor degree or more.

Pearson correlation was conducted to establish relationship, if any between dependent variable organizational commitment and independent variables, job satisfaction, perceived organizational justice and employee empowerment. In addition, a multiple regression analysis was performed to assess the predictive values of job satisfaction, organizational justice and employee empowerment on organizational commitment in semi government organization of Civil Aviation Authority.

The findings of this study (table-2) explained that there was a strong correlation (0.91) between organizational commitment and job satisfaction. Similarly perceived organizational justice also proved strongly correlated with organizational commitment (0.83). The last independent variable, employee empowerment described positive correlation of 0.34. Thus of all the independent variables, job satisfaction proved to be having the highest correlation with dependent variable of organizational commitment (p<.001).

The model analysis comprised three independent variables of job satisfaction, perceived organizational justice and employee empowerment. The linear combination of these three independent variables was significantly related to dependent variable (organizational commitment). R square = 0.92, adjusted R square = 0.905. So an estimated of 92% of the variance of the organizational commitment can be accounted as a result of linear combination of predictors including job satisfaction, perceived organizational justice and employee empowerment.

As per the indications of table IV, two measures of predictors, job satisfaction and perceived organizational justice were mostly related to organizational commitment. This conclusion supports the bi-variate correlation between organizational commitment and job satisfaction, which was 0.91 and perceived organizational justice 0.83, p < .001.

CONCLUSION, RECOMMENDATIONS AND IMPLICATIONS

In general, Civil Aviation Authority which is a semi government organization is having adequately qualified workforce, i.e about 80% of the employees are literate till bachelor degree or more. Similarly this organization pays a reasonable monthly salary to its employees as compared to other government and non government organizations. The results of this research showed a strong correlation between organizational commitment and job satisfaction. Similarly strong correlation was observed between organizational commitment and perceived organizational justice. As the satisfied employees tend to be more loyal to their organizations and retain a positive attitude towards their jobs, therefore, they are unlikely to change their jobs and consider their existing job better than the other ones. Supervisors and managers of the organization should ensure that employees have a high level of job satisfaction in order to resultantly have a high level of organizational commitment. In the same way employees feel that subject to the fair treatment from their organization, they tend to be more devoted to their organization. The policies, procedures and implementation should be just and unbiased. Employees should be briefed regularly regarding the existing procedures and their implementation techniques. The employees having confidence in the fairness of organizational policies, its implementation procedures would result in greater organizational commitment. Employee empowerment although positively correlated with organizational commitment, could not significantly affect it. Therefore, on the basis of our results, we conclude that job satisfaction and perceived organizational justice significantly affect organizational commitment (H1 and H2 are accepted). Whereas, employee commitment could not significantly affect organizational commitment (H3 is rejected). Proving the fact that the increased job satisfaction and perceived organizational justice would definitely enhance the organizational commitment of the employees of Civil Aviation Authority of Pakistan. Empowerment provided to the employees, however increases the organizational commitment but it cannot pose any significant impact on organizational commitment.

LIMITATIONS AND FUTURE RESEARCH DIRECTIONS

The present research experiences some deficiencies. The study is quantitative and based on questionnaire and it is highly possible that respondents provided biased responses and it is not in hands of researcher to eliminate this biasness. Second there are only three antecedents of Organizational commitment included in this study. The other antecedents may also be included in study. The results of study are only based on the sample size of 148 and for only one industry so the results of study may be generalized by experiencing larger sample size and diverse industries.

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