IMPACT OF ORGANIZATIONAL JUSTICE AND ORGANIZATIONAL CULTURE ON EMPLOYEES COMMITMENT WITH MEDIATING ROLE OF EMPLOYEES SATISFACTION AND MODERATING ROLE OF WORK ENVIRONMENT EVIDENCE FROM PAKISTAN

http://dx.doi.org/10.31703/ger.2023(VIII-IV).03      10.31703/ger.2023(VIII-IV).03      Published : Dec 2023
Authored by : Muhammad Fayaz Khan , Alam Zeb , Muhammad Alam Khan

03 Pages : 22-39

    Abstract:

    This paper is an attempt to explore the impact of organizational justice and organizational culture on employees' commitment in of Pakistani telecom sector. A questionnaire is administered to a sample of randomly selected 240 employees working in Islamabad and Rawalpindi. Reliability, descriptive statistics and regression analysis have been used for analysis. Results of the study reveal that organizational justice and organizational culture have a direct positive impact on employees' commitment. There is a mediating role of Job satisfaction between organizational justice and organizational culture and employee commitment and a moderating role of Work environment between job satisfaction and employee commitment. The study provides valuable suggestions both for managers and academicians.

    Key Words:

    Organizational Justice, Organizational Culture, Job Satisfaction, Employee’s Commitment

    JEL Classification:

    Background of the Study

    Many organizations are facing problems in Pakistan due to employees' commitment, motivation and level of engagement in their jobs in various organizations. In order to solve this issue, various types of training and motivational enhancement sessions are arranged by the organization for their employees to enhance, or maintain a level of satisfaction of employees with their jobs and assigned tasks. Organizational justice is one of the key indicators that decide the satisfaction and employee commitment level in an organization (Sheikh and Newmann, 2011).

    Similarly, organizational culture is the blueprint of the norms and values of the community of employees in the organization. It is responsible for the behaviours of employees expected to adopt inside the organization. In other words, organizational culture is a driving force for the level of satisfaction of employees and their commitment (psychological attachment) to their respective organizations. 

    This study is an attempt to explore the effects of organizational justice and organisational culture on Employee Commitment with the mediating role of Employee Satisfaction and moderating role of the work environment in the context of Pakistan.

    Employee Satisfaction and moderating role of the work environment in the context of Pakistan. The Case of Pakistani Telecom Industry

    With the dawn of the twenty-first century, Pakistan witnessed great strides in the development as well as expansion of the telecommunication industry. Formerly, the telecom industry was fully dominated by Pakistan Telecommunication Company Limited (PTCL), but after the market deregulation policy of the former Military dictator General Pervez Musharraf, several telecom companies made huge investments in Pakistan. They were/are not only instrumental in giving huge taxes to national exchequer but were a source of a huge number of jobs for the people, particularly, the youth of Pakistan.

    Currently, there are five telecom companies operating in Pakistan, the South Korean-based telecom company called Mobilink, which has the largest market share in the GSM sector, the UAE bases telecom company called Warid Telecom, the telecom company China Mobile company called Zong, the Norwegian-based telecom company by the name Telenor, which ha second largest market share, and at last but not the least the GSM version of PTCL called Ufone. Besides PTCL, another telecom cable company called Naya Tel is also a new entrant in the Pakistani telecommunication sector. Between 2002 and 2008, it is estimated that four million workforce were associated with the Pakistani telecom industry (Anwar & Ahmad, 2012).

    However, according to Saeed, Lodhi and Iqbal (2013), many employees also left the said companies due to low job satisfaction and low commitment levels. It is presumed that after the privatization of the PTCL, it has struggled to enhance and maintain the level of job satisfaction of its new as well as old employees, (those who were public servants before the privatization of PTCL). This study aims to explore the possible impacts of organizational and organizational justice on the job satisfaction level and employee commitment in the aforementioned telecom industry of Pakistan. 

    In the last few decades, Studies on organizational justice and culture have received considerable attention in the relationship with different outcomes of employees' behaviour (e.g., turnover intentions, employee engagement, organizational commitment, job satisfaction, and employee performance) (Colquitt et al, 2012). It is believed that organizational justice is a central parameter that can measure human behaviors in the organizational setting where this concept refers to perceived fairness in the workplace. Organizational justice means how employees, working in an organization, perceive fairness in place(s) of employment or organizational setting. 

    It has an impact on employees' work, morale and overall performance. Employees want respect, just treatment and fair dealing on the part of top management of the organization. It is also related to the perception of fairness of employees within a company/business enterprise. Organizational justice ensures happy and productive employees; who serve organizations to the best of their potential.

    Organizational justice has three main components or dimensions, which are Distributive justice, Procedural justice and Interactional justice (Whitman, Caleo & Carpenter, 2012). Distributive justice means employees are concerned about the fairness of the outcomes that they receive from an organization, in response to their service to that organization. According to Najafi et al. (2011), any sort of distributive unfairness may lead to low employee productivity or morale. Procedural justice is related to employee's perception of processes through which outcomes are decided for them. Interactional justice deals with how explanations are communicated to employees regarding day-to-day routine business and policy measures adopted by the organization. It is concerned with fair treatment and sensitivity towards employees. Interactional justice has two dimensions; interpersonal justice and informational justice; for both are related to fair, clear and on-time communication with employees regarding their involvement in organizational settings. 

    Organizational justice is the same as the coded word for the subjective side of organisational life. It is aimed at examining those behaviours among employees that can create a just state of behaviour among them. According to Smirchich (1983), organizational culture is a collective programming of minds. 

    Weak organizational culture shows how employees should behave in a work setting, however, strong organizational culture is a source to force someone to behave according to organizational demands. 

    The work environment is the physical location where employees are supposed to perform their tasks and assignments in an organization. It is the location where tasks are completed by employees. The work environment is the immediate surroundings of a workplace, for example building of the house. It can also be defined as the conditions surrounding employees where they have to operate (Lumley et al, 2011). Work environment may be physical, such as equipment, machines, office buildings and other such tools, and nonphysical such as processes and procedures in an organization that constitute a work environment. The work environment can be broadly classified as an employee-friendly work environment (Fernandes & Awanleh, 2006). The work environment may be hostile and marred by offences and harassment, which results in decreased employee commitment and hence tendencies of turn intentions on the part of employees.

    Social interactions are involved at a workplace in a work environment, which includes interaction with managers, peers and subordinate people of the organization. A positive work environment is the key to organizational commitment on the part of employees. It makes employees feel good about their work and it is a motivational factor behind their role in organizational success. 

    There are various artefacts of a strong work environment, where employees feel relaxed as well as satisfied of mind and heart, where they put their full zest into their jobs and tasks assigned to them (Dul & Ceylan, 2011). First among these artefacts is the personal respect of employees; it is the core part of a strong work environment in an organization. Every employee has some of his or her self-respect and he readily wants to be given respect and value where he works. Issues such as discrimination on the basis of age, caste, colour, gender, religion or beliefs not only negatively affect the individual performance of employees, but also lead to reduced organizational performance and productivity. It can also lead to reduced job satisfaction and increased turnover intention on the part of employees.

    A type of working environment where employees are given respect and care, not only their commitment to work increases but also become ready to do something extraordinary for their organization. Second, a work environment where employees are provided with ample opportunities for personal and professional growth, and where they feel that they can make the best use of their potential, can safely be regarded as an efficient work environment. Employees need a work environment where their skills are developed and polished, where they can go higher in managerial hierarchies, where they are entrusted with new and greater responsibilities and where they can earn more compensation for the service that they render to their organization (Srithongrung, 2011).

    Thirdly, management styles in an organization also define the work environment in an organization. Managers may be authoritative, authoritarian, collaborative, facilitative, coercive or overbearing. Each sort of management style sets a different working environment and employee behaviour. Keeping the exact management style in the right situation can boost employee satisfaction and keep the turnover intention of employees at a low level.

    Fourthly, a company's distinct culture defines its working environment. Cultural artifacts play a dominant role in carving an employee-friendly working environment, where employees feel at ease and comfortable in carrying out various operations in the organization. Cultural artefacts such as conflict-resolving mechanisms, innovation, dress codes, office rooms, buildings, communication styles and the like are but some of the drivers that set the foundation of an employee-friendly working environment. What makes a healthy work environment in an organization is (1) a shared understanding that a healthy work environment is beneficial for all internal as well as external stakeholders of the organization, (2) promote health and wellness among employees, (3) enable employees to take responsibilities and face challenges, (4) assist workers, encourage them and applaud them for their achievements.

    Employee commitment is the psychological attachment with his/her job or organization, as what he feels about his job. Employees who are fully committed to their work give a competitive edge to their organization, and job commitment is the real outcome of employee satisfaction with his or her job. Meyer and Allen (1993) proposed a three-component model of employee commitment, according to which job commitment has three components; Affective commitment, Continuance commitment and normative commitment. Employee commitment may be positive or negative and predicts work behaviour like job performance, turnover intentions, employee engagement and organizational citizenship behaviour. It also ensures higher productivity and a low turnover rate on the part of employees.

    The level of employee commitment to an organization is directly linked with job satisfaction shown by employees. Those who are highly committed show a greater degree of job satisfaction and vice versa. Employee commitment to the organization also shows employee-employer relations (Schweitzer and Patzelt, 2012). Commitment to the organization can also be defined in terms of loyalty towards the organization. Emotional and intellectual involvement on the part of employees in an organization is also related to employee commitment. Committed employee behaviour is central to human resource development. Organizational justice is also a decisive factor behind employee commitment.

    Organizational commitment is related to the totality of internalized normative pressure. It is an end to meet the organizational interests. It is also a means of organizational identification and generalized value of duty and loyalty. Organizational commitment is fully influenced by personal predisposition and organizational interventions, recruitment of new workforce, selection and socialization within the organization. Some researchers regard organizational commitment as a means to an end while others take it as an end towards a mean. The end is the achievement of organizational mission and vision goals. It is a normative motivational process distinctive from instrumental utilitarian approaches. It consists of attitudinal intervening constructs and is a means towards partisan, affective attachment to the goals, objectives and values of organizations.

    Organizational commitment ensures alternative, moral and calculative bonds with the organizations. It is also identified with the goals of organizational multiple constituencies, which may be top management, customers, employee unions, mass media and even the general public, who may affect or get affected by the organization directly and indirectly. These rewards and costs typically increase as tenure in an organization increases. An employee's undisputable commitment to his or her organization is an effort towards organizational goals and objectives. It is a cognitive and physical binding of an individual to achieving organizational goals and targets.

    Employees' commitment to an organization is inversely associated with turnover intention and other withdrawal behaviours, such as decreased performance. Some of the scholars have proved those employees' commitment decreases absenteeism and tardiness and helps to improve regularity and punctuality. There are various antecedents of job commitment, chief among them are identification of role-related variables such as role conflict and degree of job challenges. Sunk costs also increase commitment among members of the organization. Employee commitment leads to post hoc, organization-specific skills, status, accumulated investments and rewards as well as sunk costs. Job satisfaction is the key that creates in employees of an organization explicit, irrevocable and volitional behaviour, which binds individual employees in such a behaviour that results in increased job commitment.

    The question is why employees are committed to their jobs and organizations, two possible answers have been given by researchers in this regard. They may identify with goals initiated by an organization, or they may give much value to job security being provided to them. In an actual work setting, employee commitment is perceived as a psychological bond that employees have with the targets, set with their jobs. Employee commitment may also be called a social entity.

    Various constructs of employee commitment are broadly classified into three main sections, which are further into sub-constructs of employee commitment (Chan & Qiu, 2011). This section will fully expose the homological dimensions of employees' commitment to their job as well as their organization. The first of these is based on the basic motivation-based commitment to their job. Following are the sub-constructs of the same. (1) Internalization; acting according to the adopted goals and values of others as they are integrated and self-determined. It is related to affective commitment. (2) Identification; those acts that are consistent with that of others or several expectations. It is also related to affective commitment. (3) Introjections; it is related to reducing feelings of guilt and boosting self-esteem. It is aimed to build and maintain self-confidence in the workplace. It is related to normative commitment. (4) Compliance; it is a means to win rewards and to shun punishments, and self-assertiveness to increase the commitment level with the job and with the organization.

    Second, among these constructs is based on self-identity rules. It is also further divided into various dimensions, for example, (1) Collective; employee commitment at the level of group membership, group norms and collective behaviours. It is related to affective commitment. (2) Relational; employee commitment at the levels of dyadic partnerships, partnership roles and expectations of committed behaviour to one's job at the partner level in groups. It is related to affective commitment. (3) Individual; it is commitment due to personal uniqueness personal goals and personal welfare. In short, it is personal-centric.

    The third major construct is based on the notion called regulatory foci. Its further subdimensions are as follows. (1) Promotion; it is all about achieving gains, making higher strides, setting ideal goals and achieving milestones. It is related to affective commitment. (2) Prevention; preventing losses, setting feared objectives, and minimizing situations that may lead to financial and non-financial situations (Chan & Qiu, 2011).

    Research Objectives

    1) To explore the impacts of organizational justice on employees' job satisfaction and commitment in a work setting. 

    2) To find out the relationship between organizational culture, employee satisfaction and organizational commitment.

    3) To know about possible implications of employees' job satisfaction on their work environment.

    4) To analyze how job satisfaction leads to an efficient work environment and organizational commitment.

    5) To examine whether satisfaction of job moderates the relationship between organizational justice and employee commitment.

    6) To investigate the moderation of job satisfaction between organizational culture and employee commitment.

    7) To explore the impact of organizational culture on organizational commitment.

    8) To look into the impact of organizational justice on organizational commitment.

    Research Questions

    1) What is the impact of organizational justice on employee's job satisfaction?

    2) How does organizational culture impact employee's job satisfaction in an organization?

    3) Does job satisfaction affect the work environment in organizations?

    4) Is there any relationship between organizational justice and employee commitment in business organizations?

    5) Does job satisfaction moderate the relationship between organizational justice and employee commitment?

    6) Is there any moderation impact of job satisfaction between organizational culture and employee commitment?

    Literature Review

    This section is all about some of the past studies that have been conducted by various researchers on organizational justice, culture and age of employees and their possible impacts on employee satisfaction and their commitment and psychological attachment towards their organization. There has been a lot of research work on employee satisfaction and job commitment, but studies on organizational culture and employee age are not that much compared to the former. This section aims to explore some of the past literature in a step-by-step approach, relating to each variable at a time. 

    Organizational justice

    Justice can be explained as fairness in trials and 

    certain processes and procedures to resolve disputes among people, and this notion is called procedural justice., procedural justice is also called due process in the United States, in Canada it is called fundamental justice while in Pakistan and many Asian countries it is known as natural justice. Sheikh and Newmann (2011) found a positive relationship between organizational distributive justice and employee commitment. According to them, employee perceives the fair distribution of awards and incentives as a key to their level of satisfaction and commitment to their jobs. 

    The relationship between the perception of organizational justice and organizational commitment was investigated by Cheng (2014), who found that the implementation of administrative performance appraisal activities is associated with the perception of organizational justice by employees, which in turn is highly associated with the level of employees' organizational commitment. Zhang, Lepine, Buckman and Wei (2011) analyzed the intervening effect of organizational justice on work stress and job performance. 

    H1:  There is a significant positive impact of organizational justice on job satisfaction.

    H2:  Organizational justice has a direct impact on employee commitment.

    Table 4.2.1

    Reliability Analysis of the Complete Data (N=40) Description 

    Table 1.

    Cronbach’s Alpha

    No of Items

     

    Organizational Justice (DJ)

    0.785

    10

    Organizational Culture (OC)

    0.690

    9

    Job Satisfaction (JS)  

    0.634

    6

    Work Environment (WE)  

    0.634

    7

    Employee‘s Commitment (EC) 

    0.708

    8

    Table 1.

    To calculate internal consistency, Cronbach‘s alpha test is used. The value of Cronbach‘s alpha ranges from 0.6 to 0.9 (Cronbach, 1955). The table shows that the reliability values of all the data fall in the desired range. This makes the data feasible for further statistical tests.  4.3 Descriptive Statistics.

    Table 2

    Variables

    Mean

    S.D

    Skewness

    Kurtosis

    OJ

    3.78

    .379

    -.077

    .757

    OC

    3.89

    .314

    .590

    2.84

    JB

    4.03

    .341

    .836

    1.21

    WE

    3.85

    .396

    .218

    1.84

    EC

    3.62

    .514

    .104

    .849

    Table 2.

    In the table, it is clear that mean values are inclining towards the agreed side by the respondents, but slightly on the side of neutral responses. Similarly, the values of skewness and kurtosis are within the range between -1 and1, and -3 and +3 respectively. It is therefore interpreted that data is normal and satisfies all aspects of the assumptions of regression analysis. 

    Organizational Culture

    Tsai (2011) explains the importance of organizational culture and employee satisfaction and found in his research study that organizational culture has a vital role in a work setting for employees to be healthy and happy. It is revealed that organisations have a considerable impact on employee satisfaction and job commitment. As per the analysis by Eccles (2011) a strong corporate culture is a source of highly sustainable organization commitment and job satisfaction. This reflects that a strong centralized culture leads to dissatisfaction among the employees which further leads to job commitment.

    It is found that organizational subculture is strongly related to organizational commitment (Lok and Crawford, 1999). This is reflected in the studies by Zalabak and Ellis (2009), where it has been challenged that culture of organization and communication produce effectiveness in organizational performance and job satisfaction of employees.  According to Chang and Lee (2007), organizational culture has a positive and significant impact on the operation of learning organizations and employees' satisfaction. The findings further reveal that gender and age of the employees influence job satisfaction keeping in view the opportunities provided by organizational culture to them.

    H3:  There is a significant positive impact of organizational culture on job satisfaction.

    H4:  Organizational culture has a direct impact on employee commitment.

    Job Satisfaction

    It is argued that employees' performance is contingent upon job satisfaction and there is a strong positive relation between employees' commitment with job satisfaction (Azeem M et al, 2012). According to Asikgil and Aydogdu (2011), three dimensions of organizational commitment and job satisfaction are strongly correlated. Similarly, there is a significant negative relationship between turnover intention and organizational commitment. According to Bergmann et al. (2011), job satisfaction and HR practices enhance the relationship with organizational commitment. 

    H5:  Job satisfaction positively impacts employee commitment in the organization.

    H6: Job satisfaction mediates the relationship between organizational justice and employee commitment.

    H7: Job satisfaction mediates the relationship between organizational culture and employee commitment.

    Work Environment

    Various scholars have explored the impact of the work environment on employees' behaviour in an organization. Pieces of evidence show that work environment affects job satisfaction and organizational commitment of people working in an organization. Yousef (2001) examined the work ethics environment in various organizations in the United Arab Emirates. It was found that a good working environment has a significant impact on job satisfaction and organizational commitment of employees. Fernandes and Awanleh (2006) concluded that justice in the workplace develops an environment of job satisfaction for the employees.

    Six work environment issues influence organizational commitment, Kalliath and Kalliath (2012), which include inter-organizational network, workplace bullying, professional contractor well-being, inter-generational differences, commitment and intention to leave and work engagement. Borges (2012) analyzed the role of organizational culture and working environment in knowledge sharing among IT workers. Similarly, Dul and Ceylan (2011) analyzed the impact of the work environment on employees' creativity and job commitment levels. They investigated that personal, social, physical and organizational factors of the work environment are instrumental in creating a viable creative atmosphere for employees in an organization. Srithongrung (2011) investigated that transformational leadership directly enhances a strong work environment that increases employees' job satisfaction and commitment levels.

    Price and Whitely (2014) analyzed that a conducive work environment in an organization creates sustainable cultural changes and adds more value to employee's productivity and overall job behaviour. Gilder (2003) investigated the impact of the work environment on the commitment level of contingent workers and core workers. The findings suggest that contingent workers had less organizational commitment level than those of core employees.


    Employees’ Commitment

    Evidence shows that several studies have examined the relationship between employees' behaviour and organizational performance trends in connection with employees' commitment. Xiao and Fabian (2012) investigated the relationship between work values, job satisfaction and organization commitment among white-collar workers in China. Similarly, Kang et al. (2014) found a strong influence of job satisfaction on organisational commitment. The results of the study reveal that the support of the supervisor had a positive impact on employees' commitment and satisfaction. The study further found that higher organizational commitment at a high level reduces turnover intentions of the employees.

    Ozturk, Hancer and Im (2013) examined the impact of job characteristics and job autonomy on both job satisfaction and affective commitment. They opined that those organizations which have a culture of autonomy have greater levels of job satisfaction and organizational commitment in their employees. Although, there are various dimensions of employee commitment as per the studies carried out by Allen and Amayer (1993), however, this study will take employee commitment as a composite variable.

    Cullen, Parboteeah and Victor (2003) investigated the impact of an ethical work environment on organizational commitment. Woo and Chelladurai (2012) examined the impact of perceived support that is available in the organization on the organization's commitment to employees. They concluded that perceived support to employees positively impacts organizational commitment and negatively impacts intentions to leave.

    Costen and Salazar (2011) argue that employees who are provided with opportunities for new skills development are satisfied with their jobs as they need development in their career growth. As long as personal development opportunities are provided to employees in their careers, their commitment to the organization increases. Chan and Qiu (2011) found that migrant workers are fully satisfied with their jobs and they are also committed to their respective organizations. Top and Gider (2013) investigated the effects of age, gender, income level, educational level, ownership rights, job tenure, beliefs and marital status on job commitment and employee satisfaction among nurses and medical secretaries in Turkish hospitals.  

    Theoretical framework

    This study aims to investigate the impact of

     organizational justice, organizational culture on employees' commitment and job satisfaction with the moderating role of the work environment. In this study, organizational justice and culture are taken as independent variables, while job satisfaction is the mediator variable. The work environment is supposed to moderate the relationship between job satisfaction and the organizational commitment of employees, as organizational commitment is the independent variable. The theoretical framework or model is given below. 

    Figure1


    Organizational Justice

    Dispute resolution procedures, fair treatment of employees, respect given to employees, just treatment, fair treatment and fair dealing, fairness in outcomes that they receive, fairness in processes through which outcomes are decided for them and on-time communication with employees with employees with a view to keep the abreast of all the activities that are going on inside as well outside the organization are but some of the attributes of the organizational justice. (Thibau and Walker, 1975; Greenberg, 1987; Najafi et al,. 2011; Caleo and Carpenter, 2012) 

    Organizational Culture

    The culture of an organisation is a set of common meanings, values and beliefs where assumptions, working environment, management styles, activities, dresses, the pattern of risk-taking and competition are contingent upon organizational culture. 

    Job Satisfaction

    Job satisfaction refers to the extent to which employees are happy and satisfied with their jobs (Mayer & Stanley, 2012; Schein, 1985).   

    Work Environment

    The physical location is like a building, a house, or a geographical boundary where employees are supposed to do their jobs and complete the tasks assigned to them. A working place where employees interact, exchange ideas, settle disputes and make plans for the success of an organization is called the work environment of the organization. (Lumley et al,. 2011; Fernandes & Awanleh, 2006; Dul & Ceylan, 2011).  

    Employee Commitment

    It is the cognitive and psychological attachment with his or her job on the part of employees. Employee commitment may be effective, continuous or normative. It may be positive or negative employee commitment to their jobs and organization based on the attachment of an employee to his job. It is also defined as loyalty to one's job in an organization. (Meyer & Allan, 1993; Schweitzer & Patzelt, 2012; Okpara, 2000). 

    Research Methodologies Research Approach

    For the research and hypothesis testing, an exploratory approach has been used. In the exploratory approach, no prior information is available as to how the variables in the study would behave with one another when integrated. The collection of data with the help of a questionnaire facilitates the researcher to find out the results of the study. 

    Population

    For this study, employees of the telecom industry working in Pakistan have been taken as population.

    Sample Size

    The sample size for this study has been reduced to the telecom organizations working in Islamabad and Rawalpindi. Convenience sampling was a technique adopted to get data through questionnaire(s). Three hundred (300) questionnaires were distributed among employees of telecom companies working in two cities of Rawalpindi and Islamabad out of which 240 were returned and were set for data analysis (80% response rate). 

    Unit of Analysis

    Unit analysis in the study is the individual employees working in the telecom organizations of Pakistan. 

    Instrument Development

    Instrument means scale that is used for data collection and is called a questionnaire. Questionnaires were adapted from various sources. The items of organizational justice were adapted from (Colquitt et al., 2001; Neihoff and Moorman, 1993). The items of organizational culture were adapted from (JJ van Muijen, et al 1999), while that of job satisfaction was adapted from (Hoppock, 1935). The items of work environment and employee commitment were adapted from (Faisal, 2010) and (Allen and Mayer, 1996) respectively. 

    Questionnaires

    The questionnaire has been adapted from various sources in order to collect data for this research study. At the start of questionnaires, there is demographic information such as the name of the organization, age of the respondent, marital status of the respondent and job experience. It comprised 40 items, specific items for each variable. Details are given in the table below. 

    Table 3

    S. No

    Variable

    Type of Variable

    No of items

    Adapted From

    1

    Organizational Justice

    Independent

    10

    (Colquitt et al., 2001;

    Neihoff and Moorman, 1993)

    2

    Organizational Culture

    Independent

    06

    (JJ van Muijen, et al

    1999)

    3

    Job Satisfaction

    Independent

    07

    (Cammann, Fichman, Hankins & Klesh, 1979)

    4

    Work Environment

    Moderating

    08

    (Ceresl, 2003)

    5

    Employee Commitment

    Dependent

    09

    (Allen and Mayer,

    1996)

    Data Analysis and Results

    This study investigates the impact of organizational justice and organizational culture on employees' commitment to the mediating role of job satisfaction and the moderating role of the work environment. Different tests were performed on the collected data which has been given below in the tabulated form.  

    Demographic Analysis Table 4.1

    Demographics  

    Frequency

    Percent

    Age Below 25 years                 

    104

    43.3

    25-40 years                          

    136

    56.7

    Gender            Male                               

    200

    83.3

    Female                       

    40

    16.7

    Marital Status Single                                   

    152

    63.3

    Married                       

    88

    36.7

    Experience Less than 5 years                  

    228

    53

    5-10 years or above

    12

    46.7

    Age

    The first information in the column is related to the age of the respondents. As evident from the table, the largest number of respondent employees is above the age of 25 years, i.e. 56.7%, while 104 respondents were falling the age below 25 i.e. 43.3% 

    Gender

    The second row denotes the gender of the respondents. The ratio of respondents is more than that of females. Males are 83.3% while females are just 16.7%.  

    Marital Status

    The third row is related to the marital status of the 

    respondents. 63.3% of the respondents are single while 36.7 % of the respondents are married. 

    Experience

    The fourth row of the table shows experience, information about the job experience of the employees is given. The table shows that 53.3% of the selected sample has experienced less than five years, while 46.7% of the selected sample have experienced more than five years. 

    Correlation

    The correlation matrix shows the relationship between and among variables. The inter-correlation among variables is given in the table 4.5 below. 

    Table 4.3 Correlations (N=240)

    Variables                       

    OJ

    OC

    JS

    WE

    EC

    OJ

    1

     

     

     

     

    OC

    .754**

    1

     

     

     

    JS

    .707**

    .854**

    1

     

     

    WE

    .753**

    .758**

    .848**

    1

     

    EC

    .602**

    .309**

    .715**

    .791**

    1

    In Table 4, it is clear that the correlation among the independent variables is high and significantly positive with each other. The correlation between organizational justice and organizational culture is .707 at 0.05 significant levels, which means that the correlation between the two is 95% valid in this study. The correlation between job satisfaction and organizational culture is .854 at 0.05 significant levels. It means the correlation between the two variables is strong and positive. The correlation between work environment and organizational justice is .753 at 0.05 significant levels, work environment and organizational culture is .758 at 0.05 significant levels and between work environment and job satisfaction is .848 at 0.05 significant levels, 

    which shows a strong and positive correlation between variables.  

    Regression Analysis

    Regression analysis estimates the relationship among the variables. 

    The general regression equation for the research model 

    Y=?+?1X1+?2X2+?3X3+…+ ? 

    Where 

    X1 = first variable 

    X2 = second variable X3 = third variable ? is for error factor 

    The following tables show the summary results of the regression analysis of each variable. 

      

    Table 4.4 Multiple Regression

    Steps

    IVs

    DV

    R2

    ?

    F-test

    Sig.

    t-stat

    Sig.

    1

    Org jus

    Empcom

    .446

    .865

    95.57

    0.00

    12.25

    0.00

    Org cul

    .511

    0.00

    5.99

    0.00

    Hypothesis 1: Organizational justice has a direct impact on employee commitment. 

    The hypothesis is accepted, R square (0.096), T (5.016) with a significant value of 0.00. 

    Hypothesis 2: Organizational culture has a direct impact on employee commitment. 

    The hypothesis is accepted, R square (0.362), T (11.63) with a significant value of 0.00.  

    Table 4.4a

    Steps

    IVs

    DV

    R2

    ?

    F-test

    t- stat

    Sig.

    1

    Org jus

    Job sat

    .544

    .629

    147.18

    16.12

    0.00

    Org cul

    .251

    5.33

    0.00

    Hypothesis 3: Organizational justice has a significant and positive impact on job satisfaction. The value of R square (.500) and T(15,441) confirms the hypothesis. 

    Hypothesis 4: Organizational culture has a significant and positive impact on job satisfaction, proved by the value of R square (0.065) and T (4.00). 

    Table 4.4b

    Hypothesis

    R2

    B

    t-test

    Sig

    F-test

    Sig.

    H5: Job satisfaction positively impacts employee commitment in the organization.

    0.511

    0.161

    15.75

    0.00

    248.26

    0.00

    Table 4.4b

    Hypothesis 5: Job satisfaction has a direct impact on employee commitment. 

    The hypothesis is accepted, R square (0.511), T (15.756) with a significant value of 0.00. 

    4.6 Mediation Analysis (Barron & Kenny, 1986) 

    In order to conduct mediation analysis Barron and Kenny's (1986) method was followed by four steps.  

    Table 4.5.1 Baron and Kenny's (1986) method for mediation analysis (N=240)

    R

    R2

    F

    P

    B

    T

    Sig

     Assumption 1:OJ (IV) ? EC (DV)

    0.602

    .362

    135.29   0.00

    .879

    11.63

    0.00

     Assumption 2:OJ (MV) ? JS (DV)

    0.707

    .50

    238.41   0.00

    .636

    15.44

    0.00

     Assumption 3:JS (IV) ? EC (MV)

    0.715

    .51

    248.26   0.00

    1.16

    15.75

    0.00

     H6a:OJ (IV)  

    .602

    .362

    135.29   0.00

    .879

    11.63

    0.00

    Table 4.5.1

    H6: Job satisfaction mediates the relationship between organizational justice and employee commitment. *p<0.05 From the above results it can be safely said that job satisfaction mediated between organizational justice and employee commitment.  

    Table 4.5.2 Baron and Kenny's (1986) method for mediation analysis (N=240)

    R

    R2

    F

    Sig

    B

    T

    Sig

    Assumption 1:OC (IV) ? EC (DV)

    .545

    .096

    25.15     0.00

    .309

    5.01

    0.00

    Assumption 2:OC (MV) ? JS (DV)

    .254

    .065

    16.40     0.00

    .276

    4.05

    0.00

     Assumption 3:JS (IV) ? EC (MV)

    .715

    .51

    248.26   0.00

    1.161

    15.75

    0.00

     H6b OC(IV)

    .309

    .096

    25.15     0.00

    .545

    5.01

    0.00

    H7:.Job satisfaction mediates the relationship between organizational culture and employee commitment. *p<0.0.

    Moderation Work environment is the moderated variable in the research model. A moderated variable is one which either increases or decreases the impact of two variables on one another. Following is the moderation analysis of the work environment on job satisfaction and employee commitment. 


    Table 4.5.3 Baron and Kenny's (1986) method for moderation analysis (N=240)

     

    R

    R2

    F

    ß

    T

    sig

    Assumption 1:JS (IV) ? EC (DV)

    .715

    .511

    248.26

    1.16

    15.75

    0.00

    Assumption 2:JS (MV) ? WE (DV)

    .848

    .719

    609.40

    .985

    24.68

    0.00

    Assumption 3:WE (IV) ? EC (MV)

    .791

    .626

    398.62

    1.10

    19.96

    0.00

    Assumption 4 JS_WE(IV)?EC(DV)

    .774

    .599

    356.14

    .149

    18.87

    0.00

     

    R

    R2

    F

    ß

    T

    sig

    Assumption 1:JS (IV) ? EC (DV)

    .715

    .511

    248.26

    1.16

    15.75

    0.00

    Assumption 2:JS (MV) ? WE (DV)

    .848

    .719

    609.40

    .985

    24.68

    0.00

    Assumption 3:WE (IV) ? EC (MV)

    .791

    .626

    398.62

    1.10

    19.96

    0.00

    Assumption 4 JS_WE(IV)?EC(DV)

    .774

    .599

    356.14

    .149

    18.87

    0.00

    Table 4.5.3

    H7):.work environment moderates the relationship between job satisfaction and employee commitment. *p<0.05 

    The value of T (18.87) confirms the positive relation between the two composite variables and the dependent variable. From the above results, it can be concluded that the work environment moderates the relationship between job satisfaction and employee commitment 

    Discussion

    The correlation and regression analysis show that organizational justice has a positive and significant impact on employee commitment in the telecom industries of Pakistan. It means that the stronger the justice procedures and justice system in organizations, the stronger will be the commitment level of employees to their jobs as well as organizations. Employees really have concerns regarding how pay and rewards are distributed among them. Any sort of injustice or unfairness in the distribution of rewards and incentives may lead to lower job commitment and hence increased turnover intentions on the part of employees. Procedural justice is related to fairness in procedures that are used to facilitate employees in times of need, crisis and various other problems that they face. Any kind of lack of fairness in such procedures or favouritism can cause dissatisfaction among employees. Employees are the real drivers of the organization, and they need an equal number of chances to benefit from what their organization give them for their well-being. Employees also want on-time information regarding any type of important decision-making, which could possibly affect their jobs directly or indirectly. Lack of informational justice in the organization may create confusion in the minds of employees and thus lesser commitment to their jobs. Our results are similar to those found by Demir (2011). In Pakistani telecom companies, where rapid technological as well as policy-related changes are occurring, the organizations need to enhance their justice systems, so that the trust of employees should be retained and they remain committed to their job. 

     These organizational cultural dimensions have a positive and significant impact on employees' commitment to the telecom organizations of Pakistan. Organizational culture is just like the personality of an organization and in it, there are embedded core values, beliefs, mission, vision, behaviours, working styles, managerial thoughts, office environment, building, and the like. Of course, these variables have a deep impact on the commitment levels of the employees. In the Russian context, similar findings were discovered by Zavyalova and Kacherov (2010).  In the context of Pakistani telecom organizations, the employee commitment level is directly related to the culture of those companies. Power distance is not so wide, there is a lake of collectivism, and long-term orientation is one of the core policies of these telecom companies, which makes them better places for enhanced commitment levels among employees. However, in an informal interview with some employees, they expressed their concerns about the volatile policies of the Pakistan Telecommunication Authority (PTA). According to them, there is no consistency in the policies of the PTA and this has adverse effects on companies as well as employees, for a number of employees have to quit their jobs due to certain restrictions imposed by the PTA on the telecom companies. 

     The mediation impact of job satisfaction between organizational justice and employee commitment is also evident from the results. It means that fairness in the justice system in telecom companies is instrumental in enhancing the job satisfaction level of the employees. It is a good omen for the said companies, for there is tough competition among the telecom companies of Pakistan. With increased job satisfaction levels, employees' performance increases and their commitment to their jobs as well as the organization also increases (Schweitzer and Patzelt, 2012; Okpara, 2000). Fair organizational justice procedures create a good well in the minds of employees, and they start trusting the organizational policies. Various other job-related variables are also linked with organizational justice. For instance, distributive justice is the key to employee retention and motivation. Management of the telecom companies should rest assured that that there would be no compromise on the fair distribution of rewards and incentives among employees and that information shall be communicated to employees on time so that they could feel themselves as a vital part of the organization. 

     Organizational culture is comprised of various artefacts; each has its own impact on job satisfaction and employee commitment. The results, although support the hypothesis that organizational culture has a positive impact on job satisfaction and employee commitment level, but on the weaker side. The value of ?T? is 4.05 which is much less than those of other variables. It means that compared to the justice system, organizational cultures are not that strong in the telecom industry of Pakistan. This is the reason that the turnover intention among employees is also there, for they want to quit their jobs to find better opportunities and workplaces. Weak organizational culture leads to decreased job satisfaction among employees. The results of this study, however, confirm the hypothesis of the mediation of job satisfaction between organizational culture and employee commitment. These companies need to work on making their cultures more employees' supportive and conducive.  Culture is an umbrella under which all job-related dimensions are present. A strong culture in an organization is the bedrock of its success and growth (Schweitzer and Patzelt, 2012; Okpara, 2000). 

     The results also confirm the hypothesis that the work environment moderates the relationship between job satisfaction and employees' commitment to their jobs. A moderate variable either strengthens or weakens the relationship between two variables. Four separate tests were performed to check the moderation effect of the work environment. 

    A well-built work environment readily makes the relationship between job satisfaction and employees' commitment to their jobs. Various constructs of the work environment like inter-organizational networks, workplace bullying, professional contractor well-being, inter-generational differences, commitment and intention to leave and work engagement are but a few domains that impact employees' commitment to their jobs. Inter-organizational networks among employees and different departments enhance a conducive work environment. When ethics are observed in the workplace, it creates a sense of moral as well as social security in the minds of the female workplace, and they feel satisfied with their jobs. A strong and employee's supportive work environment shall make the relationship more strengthen between job satisfaction and employee commitment. A satisfied employee will definitely want to do some extraordinary for his or her organization. 

    Conclusion

    In a nutshell, organizational justice and organizational culture have a positive impact on employee's commitment to their jobs. Job satisfaction also mediates the relationship between organizational justice, organizational culture and employee commitment. On the other hand, the work environment was also found to moderate the relationship between job satisfaction and employee commitment. The organizational justice system needs to be just and fair so that it can strengthen the employee's trust in organizational procedures and policies. Along with this, an organizational culture built on strong beliefs, norms and values is the key to employee's commitment level to their jobs. Social interactions are involved at a workplace in a work environment, which includes interaction with managers, peers and subordinate people of the organization. A positive work environment is the key to organizational commitment on the part of employees. It makes employees feel good about their work and it is a motivational factor behind their role in organizational success. There are five key characteristics of a positive work environment in an organization; which if properly taken into account, may lead to a high level of job satisfaction in employees. Pakistani telecom companies need to further work on these characteristics, to have a work conducive and employee's friendly working environment. 

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Cite this article

    APA : Khan, M. F., Zeb, A., & Khan, M. A. (2023). Impact of Organizational Justice and Organizational Culture on Employees' Commitment with Mediating Role of Employees' Satisfaction and Moderating Role of Work Environment: Evidence from Pakistan. Global Economics Review, VIII(IV), 22-39. https://doi.org/10.31703/ger.2023(VIII-IV).03
    CHICAGO : Khan, Muhammad Fayaz, Alam Zeb, and Muhammad Alam Khan. 2023. "Impact of Organizational Justice and Organizational Culture on Employees' Commitment with Mediating Role of Employees' Satisfaction and Moderating Role of Work Environment: Evidence from Pakistan." Global Economics Review, VIII (IV): 22-39 doi: 10.31703/ger.2023(VIII-IV).03
    HARVARD : KHAN, M. F., ZEB, A. & KHAN, M. A. 2023. Impact of Organizational Justice and Organizational Culture on Employees' Commitment with Mediating Role of Employees' Satisfaction and Moderating Role of Work Environment: Evidence from Pakistan. Global Economics Review, VIII, 22-39.
    MHRA : Khan, Muhammad Fayaz, Alam Zeb, and Muhammad Alam Khan. 2023. "Impact of Organizational Justice and Organizational Culture on Employees' Commitment with Mediating Role of Employees' Satisfaction and Moderating Role of Work Environment: Evidence from Pakistan." Global Economics Review, VIII: 22-39
    MLA : Khan, Muhammad Fayaz, Alam Zeb, and Muhammad Alam Khan. "Impact of Organizational Justice and Organizational Culture on Employees' Commitment with Mediating Role of Employees' Satisfaction and Moderating Role of Work Environment: Evidence from Pakistan." Global Economics Review, VIII.IV (2023): 22-39 Print.
    OXFORD : Khan, Muhammad Fayaz, Zeb, Alam, and Khan, Muhammad Alam (2023), "Impact of Organizational Justice and Organizational Culture on Employees' Commitment with Mediating Role of Employees' Satisfaction and Moderating Role of Work Environment: Evidence from Pakistan", Global Economics Review, VIII (IV), 22-39
    TURABIAN : Khan, Muhammad Fayaz, Alam Zeb, and Muhammad Alam Khan. "Impact of Organizational Justice and Organizational Culture on Employees' Commitment with Mediating Role of Employees' Satisfaction and Moderating Role of Work Environment: Evidence from Pakistan." Global Economics Review VIII, no. IV (2023): 22-39. https://doi.org/10.31703/ger.2023(VIII-IV).03