The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction

In the era of fourth industrial revolution, remuneration management has become an important organizational strategy for achieving organizational objectives. The purpose of this study is to explore the influence of performance-based remuneration management on employee’s job satisfaction through the m...

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Main Authors: Mohd Ridwan Abd Razak, Azman Ismail
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/20170/
http://journalarticle.ukm.my/20170/1/26175-88575-1-PB.pdf
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author Mohd Ridwan Abd Razak,
Azman Ismail,
author_facet Mohd Ridwan Abd Razak,
Azman Ismail,
author_sort Mohd Ridwan Abd Razak,
building UKM Institutional Repository
collection Online Access
description In the era of fourth industrial revolution, remuneration management has become an important organizational strategy for achieving organizational objectives. The purpose of this study is to explore the influence of performance-based remuneration management on employee’s job satisfaction through the mediating role of procedural justice. A cross-sectional technique was employed to collect primary data from 232 employees of private higher educational institutions in Peninsular Malaysia who experienced the implementation of performance-based remuneration. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used in the data analysis. The outcomes displayed three important findings: first, the relationship between management of performance-based remuneration and procedural justice was significant. Second, the relationship between management of performance-based remuneration, procedural justice and intrinsic job satisfaction was significant. Third, the relationship between management of performance-based remuneration, procedural justice and extrinsic job satisfaction was significant. Statistically, this result confirms that influence of management of performance-based remuneration on job satisfaction is indirectly affected by procedural justice in the studied organizations. This study provides empirical evidence on the importance of procedural justice in managing performance-based remuneration. It is an important input to enhancing employee’s job satisfaction in the organization. Further, the study concludes with a discussion on the contributions, limitations and suggestions for future research.
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spelling oai:generic.eprints.org:201702022-10-21T03:21:51Z http://journalarticle.ukm.my/20170/ The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction Mohd Ridwan Abd Razak, Azman Ismail, In the era of fourth industrial revolution, remuneration management has become an important organizational strategy for achieving organizational objectives. The purpose of this study is to explore the influence of performance-based remuneration management on employee’s job satisfaction through the mediating role of procedural justice. A cross-sectional technique was employed to collect primary data from 232 employees of private higher educational institutions in Peninsular Malaysia who experienced the implementation of performance-based remuneration. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used in the data analysis. The outcomes displayed three important findings: first, the relationship between management of performance-based remuneration and procedural justice was significant. Second, the relationship between management of performance-based remuneration, procedural justice and intrinsic job satisfaction was significant. Third, the relationship between management of performance-based remuneration, procedural justice and extrinsic job satisfaction was significant. Statistically, this result confirms that influence of management of performance-based remuneration on job satisfaction is indirectly affected by procedural justice in the studied organizations. This study provides empirical evidence on the importance of procedural justice in managing performance-based remuneration. It is an important input to enhancing employee’s job satisfaction in the organization. Further, the study concludes with a discussion on the contributions, limitations and suggestions for future research. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20170/1/26175-88575-1-PB.pdf Mohd Ridwan Abd Razak, and Azman Ismail, (2018) The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction. Jurnal Pengurusan, 52 . pp. 85-101. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1093
spellingShingle Mohd Ridwan Abd Razak,
Azman Ismail,
The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_full The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_fullStr The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_full_unstemmed The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_short The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_sort mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
url http://journalarticle.ukm.my/20170/
http://journalarticle.ukm.my/20170/
http://journalarticle.ukm.my/20170/1/26175-88575-1-PB.pdf