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The Moderating Role of Organizational Justice on the Relationship between Employee Empowerment and Organizational Commitment: A Case Study of the Banking Sector in Pakistan

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Author: KHURRAM SHAHEEN

Citable URI : https://vspace.vu.edu.pk/detail.aspx?id=96

Publisher : Virtual University of Pakistan

Date Issued: 7/1/2015 12:00:00 AM

Abstract

From the last 3 decades, empirical evidence on employee empowerment and organizational justice perception and their influence on employee work related outcomes such as productive, performance, trust, motivation, organizational citizenship behavior, turnover intensions, organizational commitment prove its significance for management researchers and business organizations alike. However, limited research is devoted on whether or not justice perception can influence the relationship between employee empowerment and organizational commitment of the employees working in banking industry of Pakistan. Hence, this study was conducted to explore the relationship between employee empowerment and organizational justice and the moderating affect of organizational justice on this relationship. For the current study, data was collected from 300 employees serving in public and private banks of Pakistan. Simple linear regression analysis was employed to evaluate the relationship between empowerment and organizational commitment, further, hierarchical multiple regression analysis was used to test the moderating affect of all dimension of organizational justice i.e distributive justice, procedural justice and interactional justice on the relationship between employee empowerment and organizational commitment. The result of the regression analysis showed significant positive relationship between empowerment and organizational commitment, and highlights that management practice to empower their employees by providing authority and autonomy would results in enhanced level of employee commitment towards their respective bank. In addition, the evidence that has been concluded from the research findings, firstly indicates that when employees are empowered their commitment and tendency to remain loyal to the organization will also increase. Secondly, when employees of the banks perceives that their input is equal to their output, they are appropriately rewarded for their contribution and they are treated with respect and dignity, such perception results in beneficial behavior of employee towards the bank they worked for and ultimately enhance their level of commitment, absence of fair standards and organization policies would result in negative behavior of employee towards the respective bank. It is clear from the research that all the dimension of empowerment and organizational justice collectively has close association and influencing effect on employees working in banking industry. Besides, perception of distributive justice has been found an important justice dimension that has significant influencing effect when interaction of employee empowerment and organizational justice is under question due to its moderating effects on the positive relationship between employee empowerment and organizational commitment. Based on the research findings, this study has drawn some conclusions, firstly, when employees working in banks feels that their task is meaningful their level of commitment enhanced. Secondly, when employees have been give the right to take decisions in their daily routine work and they are equipped with necessary tools and techniques to perform their job effectively, their commitment escalate towards the bank they work for. Thirdly, when management of the banks engender fair and just procedures and create an environment where employees perceives that they are treated in just manner and the rewards they are getting are equal and balanced with their peers , their level of organizational commitment enhances


URI : https://vspace.vu.edu.pk/details.aspx?id=96

Citation: Shaheen, K. (2015). The Moderating Role of Organizational Justice on the Relationship between Employee Empowerment and Organizational Commitment: A Case Study of the Banking Sector in Pakistan. Virtual University of Pakistan, (Lahore, Pakistan).

Version : Final Version

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