DO ORGANIZATIONAL CLIMATE AND ORGANIZATIONAL JUSTICE ENHANCE JOB PERFORMANCE THROUGH JOB SATISFACTION? A STUDY OF INDONESIAN EMPLOYEES.

Author:Haryono, Siswoyo
Position:Abstract
 
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INTRODUCTION

According to Altman (2000), to remain competitive and maintain a competent workforce, management teams should focus on organizational climate. If the climate that exists in the organization provides positive benefits for their employees, job satisfaction will increase. Gibson (1998) argued that organizations can achieve effective and efficient performance if the employees stay within job satisfaction environment. A study by Hashemi & Sadeqi (2016) confirmed the relationship between organizational climate and job satisfaction.

Justice is also important element of job satisfaction and performance. Nkrumah & Atinga (2013) found that distributive justice, procedural justice and interactional justice predict job satisfaction of health professionals. Usmani & Jamal (2013) concluded that there is a positive and significant relationship between distributive justice, interactional justice, temporal justice and job satisfaction. However, few investigations pertaining job satisfaction as intervening variable have been conducted.

The purpose of the study was to empirically examine the mediating role of work satisfaction on the influence of organizational climate and organizational justice on the performance of Yogyakarta Central Bureau of Statistics district coordinators' performance. This study specifically investigated the influence of organizational climate and organizational justice on work satisfaction, the effect of organizational climate, organizational justice and work satisfaction on work performance. Theoretically, the result of this study would provide theoretical contribution towards the application of Fishbein & Ajzen Theory (2011) in the field of human resource management and organizational behavior. Practically, the insight obtained in this study could assist Yogyakarta's Central Bureau of Statistics in undertaking their organizational reformation in line with the bureaucratic reform currently taking place in Indonesia.

THEORETICAL BACKGROUND AND HYPOTHESIS DEVELOPMENT

The Theory of Reasoned Action (TRA) was developed by Fishbein & Ajzen (2011) and was derived from previous studies that began as the theory of attitude. The theory aims to explain the relationship between attitudes and behaviors within human action. TRA is used to predict how individuals will behave based on their pre-existing attitudes and behavioral intentions. Decision to engage in a behavior is based on the outcomes the individual expects will come as a result of performing the behavior.

Grote & Grote (1996) explains that employee performance is the result of synergies from several factors, namely the organization's internal environment, external environmental factors and internal factors of employees. Internal factors are behavioral aspects of employee job satisfaction among employees, as well as external factors such as organizational climate and organizational justice. All these factors affect the performance of employees who will ultimately affect the performance of an organization.

Organizational climate is defined as an embodiment of culture, combining feelings, attitudes, behavior which shape organizational life and an organizational fact with an objective concept (Ekvall, 1996). Organizational climate affects perception and sense of membership of staff and determines whether they experience the organization as rewarding and desirable (Mathieu & Farr, 1991).

Organizational justice is a theoretical concept about organization's treatment of employees. Three types of justice have been generally accepted by the scholars: distributive justice that deals with fairness about outcome distributions, procedural justice that addresses fairness with...

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