The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention

This is a study on employees’ perception of justice towards performance-based pay and the effect of these perceptions on their turnover intention. This study aims to examine the mediating role played by distributive and procedural justice in linking pay distribution and pay procedure of performance-...

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Main Authors: Kuan, Mei Yang, Rusli, Ahmad, Siti Mariam, Abdullah
Format: Article
Language:English
Published: UNIMAS Publisher 2015
Subjects:
Online Access:http://ir.unimas.my/id/eprint/12452/
http://ir.unimas.my/id/eprint/12452/7/The%20Mediating%20Effects%20of%20Organizational%20Justice%20in%20Determining%20the%20Relationship%20%28abstract%29.pdf
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author Kuan, Mei Yang
Rusli, Ahmad
Siti Mariam, Abdullah
author_facet Kuan, Mei Yang
Rusli, Ahmad
Siti Mariam, Abdullah
author_sort Kuan, Mei Yang
building UNIMAS Institutional Repository
collection Online Access
description This is a study on employees’ perception of justice towards performance-based pay and the effect of these perceptions on their turnover intention. This study aims to examine the mediating role played by distributive and procedural justice in linking pay distribution and pay procedure of performance-based pay to employees’ turnover intention. A review of past literature in this particular area has prompted the researchers to narrow the gaps in previous studies. Towards that, this study utilized questionnaires which were administered among 50 non-managerial employees currently working in a private company located in Kuching, Sarawak, East Malaysia. Data analysis was done using Statistical Package for Social Sciences (SPSS), Version 20.0. Pearson Correlation and Stepwise Regression were used to examine the relationship between the variables. The outcomes of Stepwise Regression revealed that distributive justice fully mediated the relationship between pay distribution and employees’ turnover intention in contrast to procedural justice which did not have a significant impact in the relationship. The findings of this study are useful references for organisation management of the pay system to improve employees’ performance. Keywords: employees’ turnover intention; organizational justice; performance-based pay
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spelling unimas-124522016-06-23T00:34:46Z http://ir.unimas.my/id/eprint/12452/ The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention Kuan, Mei Yang Rusli, Ahmad Siti Mariam, Abdullah BF Psychology H Social Sciences (General) HN Social history and conditions. Social problems. Social reform HT Communities. Classes. Races This is a study on employees’ perception of justice towards performance-based pay and the effect of these perceptions on their turnover intention. This study aims to examine the mediating role played by distributive and procedural justice in linking pay distribution and pay procedure of performance-based pay to employees’ turnover intention. A review of past literature in this particular area has prompted the researchers to narrow the gaps in previous studies. Towards that, this study utilized questionnaires which were administered among 50 non-managerial employees currently working in a private company located in Kuching, Sarawak, East Malaysia. Data analysis was done using Statistical Package for Social Sciences (SPSS), Version 20.0. Pearson Correlation and Stepwise Regression were used to examine the relationship between the variables. The outcomes of Stepwise Regression revealed that distributive justice fully mediated the relationship between pay distribution and employees’ turnover intention in contrast to procedural justice which did not have a significant impact in the relationship. The findings of this study are useful references for organisation management of the pay system to improve employees’ performance. Keywords: employees’ turnover intention; organizational justice; performance-based pay UNIMAS Publisher 2015-09-01 Article PeerReviewed text en http://ir.unimas.my/id/eprint/12452/7/The%20Mediating%20Effects%20of%20Organizational%20Justice%20in%20Determining%20the%20Relationship%20%28abstract%29.pdf Kuan, Mei Yang and Rusli, Ahmad and Siti Mariam, Abdullah (2015) The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention. Journal of Cognitive Sciences and Human Development, 1 (1). pp. 1-10. ISSN 2462-1153 http://publisher.unimas.my/ojs/index.php/JCSHD
spellingShingle BF Psychology
H Social Sciences (General)
HN Social history and conditions. Social problems. Social reform
HT Communities. Classes. Races
Kuan, Mei Yang
Rusli, Ahmad
Siti Mariam, Abdullah
The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention
title The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention
title_full The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention
title_fullStr The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention
title_full_unstemmed The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention
title_short The Mediating Effects of Organizational Justice in Determining the Relationship between Performance-Based Pay and Employees’ Turnover Intention
title_sort mediating effects of organizational justice in determining the relationship between performance-based pay and employees’ turnover intention
topic BF Psychology
H Social Sciences (General)
HN Social history and conditions. Social problems. Social reform
HT Communities. Classes. Races
url http://ir.unimas.my/id/eprint/12452/
http://ir.unimas.my/id/eprint/12452/
http://ir.unimas.my/id/eprint/12452/7/The%20Mediating%20Effects%20of%20Organizational%20Justice%20in%20Determining%20the%20Relationship%20%28abstract%29.pdf