The present research analysed the relationships among organizational justice, psychological empowerment, organizational citizenship behaviour, and perceived organizational performance. For this purpose, the data was collected from 260 employees working in different banks in Pakistan. Baron and Kenny’s regression approach was used to test the mediation effect. In addition, Sobel test by Preacher, K. J. & Hayes, A. F. was also used for bootstrapping in the SPSS. All the alternate hypotheses of the study were accepted. The results of the study revealed that organizational citizenship behaviour partially mediated the relationship between organizational justice and perceived organizational performance. It was also found that organizational citizenship behaviour fully mediated the relationship between psychological empowerment and perceived organizational performance.
Organizations are constantly changing in every field of operations due to globalization. Working procedures of the organizations are also changing rapidly due to the advancements in technology. There are some active Human Resource Management (HRM) practices that can be helpful in providing solutions to the problems which are the result of continuously changing of the work environment. These practices can be a major source of organizational success. It is not an easy task to manage the people of current age group at the same time in vibrant and rapidly changing environment at different work sites. There should be different treatments for different people because one dimension of benefits is preferred by some individuals and the others may prefer a different dimension of benefits. For this purpose, such HRM practices should be implemented that provide strength to the organization in form of increased performance of the employees [
Currently, the significance of managing firm’s resources should be taken into mind for the success of any firm. Human resources play a vital part and must be considered [
A deep study of material in management research shows that the productive organizational performance is in direct relationship with the motivation level and commitment level of the employees in the organization. Motivation of employees at workplace is influenced and shaped by many factors. Some of the factors that influence and shape the motivation of employees are organizational justice and provision of basic needs for the employees. Organizational justice is achieved when people notice that they are treated at work equally and fairly. Well known psychologists also emphasize that in social exchange, fairness produces the motivation. Because everyone will get what they deserve if everything is fair in life. Individuals compare themselves with the actions of others to determine if they are treated fairly or not. Organizational justice can’t be taken too lightly because it is a major source of motivation of the employees. The three main components of organizational justice that are discussed extensively in research are “distributive justice”, “procedural justice”, and “interactional justice”. Procedural justice means that employees perceive in their minds that the decisions made by the management are transparent and fair while allocating the resources or resolving the disputes. Distributive justice is about the fair allocation of resources and rewards [
Most of the researchers and practitioners in the field of organizational theory find that psychological empowerment is very important construct and should be critically evaluated [
OCB is one of the critical and important topic in the research of organizational behaviours. In OCB, the employees perform duties beyond their obligations and cooperate voluntarily and consult with others [
In previous researches the effect of organizational justice and psychological empowerment was shown on organizational citizenship behaviour. But the mediating effect of organizational citizenship behaviour among organizational justice, psychological empowerment and perceived organizational performance was not tested. In previous research the impact of organizational justice and psychological empowerment was tested on organizational citizenship behaviour as dependent variable. In current study, we take organizational citizenship behaviour as mediating variable and test its mediating effect between organizational justice, psychological empowerment and perceived organizational performance.
Organizational Justice: According to Colquitt et al. [
According to the theory of justice, the information of distributive, procedural, and interactional justice is processed for making and revising total justice judgments. According to this theory, some other attitudes like job satisfaction [
Greenberg [
After considering the above discussed points, the following hypothesis can be considered;
H1: Organizational iustice has positive effect on perceived organizational performance.
Psychological Empowerment: There are similar definitions about the psychological empowerment which are presented by different researchers. In the early research, the researchers on organizational research give more attention to empowering as a delegation of power and authority from higher level of management to lower level of management. They also increase the access of lower staff to the knowledge and resources of the organization [
A detailed definition of empowerment hasn’t been offered yet although the concept has been discussed and used in literature for different studies. Mondros & Wilson [
Empowerment means to give authority to others. Empowerment should be regarded from the view of a redistribution model by which power balance is provided through trust and cooperation protection [
The above discussion of different concepts about the psychological empowerment shows that it is a very important phenomenon in the field of social sciences and should be addressed deeply. Because individuals who are empowered are more loyal and sincere to the organization and positively contribute towards the improvements of the organizational performance. The above discussion can be used to pose the following hypothesis;
H2: Psychological empowerment has positive effect on perceived organizational performance.
Organizational Citizenship Behaviour: A long period of time ago, Dennis Organ and his associates Bateman [
Advancement in organizational citizenship behaviour theory and research produced acceptable results for researchers. On the other hand unfortunate consequences have also been produced. For example, according to Van Dyne et al. [
Taken together, the overall results reported in previous research provides general support for the hypothesis that organizational citizenship behaviours are related to organizational effectiveness. So it is to be said that organizational citizenship behaviour is a construct that should be considered carefully in the research environments and it is a very important factor that contributes to the increment of the individual’s motivation towards the organization. Therefore, it is reported to be such variable that can increase the performance of the firm as the satisfied employees will be more productive as compared to those who are not satisfied. On the basis of above literature, the followings hypotheses are as follows;
H3: Organizational justice leads to perceived organizational performance through the mediating effects of OCB.
H4: Psychological empowerment leads to perceived organizational performance through the mediating effects of OCB.
Perceived Organizational Performance: After surfing a lot of research literature it was found that organizational performance had been measured through various indicators. Delany & Huselid [
Present theoretical efforts on resource-based observation of the firm support the concept that suitable human resource practices may be a substantial base of “competitive advantage” and claim that all the valuable and productive organizational resources lead to sustainable competitive advantage. Resource-based theory says that these foundations of value are progressively available to almost everyone somewhere and they are easy to duplicate, mainly when paralleled to complex social arrangements like human resource systems. Good human resource management practices has an effect on “organizational performance” by improving the “attitude of employees, skills, abilities, knowledge, motivation and working patterns”, according to Delaney & Huselid (1996).
Several writers in the research field have discovered that there are relations among the HRM practices of the individuals’ and performance of the firm in the market. As described by Youndt et al. [
This study was conducted to provide evidence about the effects of organizational justice and psychological em-
powerment on perceived organizational performance and to test the mediating effect of organizational citizenship behaviour among them. Quantitative approach is used in this study and a questionnaire based on two sections in which first section was about the demographics and second section was about the questions related to the variables. For the purpose of this study, 300 questionnaires were distributed and 260 were returned by the respondents. It is a general consideration that characteristics of population are represented by the sample chosen from that population.
Close ended questionnaire based on five point Likert scale with options from strongly agree to strongly disagree. Each option was assigned a scale. 5 = strongly agree, 4 = agree, 3 = indifferent/neutral, 2 = disagree and 1 = strongly disagree.
To measure the dependent variable (Perceived Organizational Performance) questionnaire was based on questions/items used by Singh (2004), Qureshi et al. [
Regression analysis of Baron and Kenny [
Out of 300 questionnaires distributed, 260 were returned completed showing 86.67% response rate. According to
Demographics | Number of Participants (N) | Percentage |
---|---|---|
Gender | ||
Male | 213 | 81.9 |
Female | 47 | 18.1 |
Age | ||
Less than 30 | 46 | 17.7 |
30 to 35 | 157 | 60.4 |
36 to 40 | 18 | 6.9 |
41 to 45 | 16 | 6.2 |
46 to 50 | 16 | 6.2 |
51 and Above | 7 | 2.7 |
Marital Status | ||
Unmarried | 92 | 35.4 |
Married | 168 | 64.6 |
Experience | ||
Less than 3 years | 54 | 20.8 |
3 to 5 years | 89 | 34.2 |
6 to 10 years | 72 | 27.7 |
11 to 15 years | 15 | 5.8 |
16 to 20 years | 19 | 7.3 |
21 and above | 11 | 4.2 |
Nature of Job | ||
Contract | 53 | 20.4 |
Regular | 207 | 79.6 |
Mean | SD | OJ | PE | OCB | POP | |
---|---|---|---|---|---|---|
OJ | 3.43 | 0.46 | 1 | |||
PE | 3.66 | 0.53 | 0.51** | 1 | ||
OCB | 3.87 | 0.34 | 0.40** | 0.72** | 1 | |
POP | 4.06 | 0.38 | 0.52** | 0.53** | 0.73** | 1 |
**Correlation is significant at the 0.01 level (2-tailed).
result will be increase in the other variable. In simple words we can say that increase in dependent variable also increase the value of dependent variable. All the values of correlation are significant at 0.01 2-tailed test. Independent variables (organizational justice, psychological empowerment) are positively correlated with mediating variable (organizational citizenship behaviour); it is also found that mediating variable is also positively correlated with dependent variable (perceived organizational performance).
β | R2 | ΔR2 | Sig | |
---|---|---|---|---|
OJ → POP | 0.43 | 0.27 | 0.27 | 0.00 |
OJ → OCB | 0.29 | 0.16 | 0.15 | 0.00 |
OCB → POP | 0.83 | 0.53 | 0.53 | 0.00 |
OJ → OCB → POP | 0.23 | 0.60 | 0.59 | 0.00 |
PE → POP | 0.39 | 0.29 | 0.28 | 0.00 |
PE → OCB | 0.45 | 0.51 | 0.51 | 0.00 |
PE → OCB → POP | 0.02 | 0.53 | 0.53 | 0.66 |
between organizational citizenship behaviour and perceived organizational performance. OCB partially mediates between OJ and POP because the results remain significant after entering the mediator in analysis. On the other hand, OCB fully mediates the relationship between PE and POP because the results become insignificant after including the mediator in the analysis.
While conducting the research there were many limitations in it. First one is the limitation of sample size. For more accurate results a large enough sample should be considered. Second, there is lack of understanding in the respondents about the concepts asked in the questions. Thirdly, organizational performance was measured according to the perception of employees which may show biased results and far from reality.
This study was conducted in a developing country where the organizations were not fully adopting the management policies and practices discussed in literature. There is a lot of attention required in the future to test such concepts in other fields of industry. The current study was in banking sector. Other sectors like services and manufacturing should also be included in future research.