The Impact of Organizational Justice on Employee's Job Satisfaction: The Malaysian Companies Perspectives
Problem statement: This research study analyzed the impact of organiz ational justice as encompassed by two components, namely distributive justice and procedural justice on employee's job satisfaction, organizational commitment, and turnov er intention. This study revealed a positive and significant relationship showing that the foundatio n of an employee's job satisfaction and organizational commitment is within the application of both distributive and procedural justice, and this supports a significant negative relationship t o turnover intention. Approach: This study included the design and distribution of a self administered questionnaire to 300 Malaysian employees working for small and middle size companies in the Malaysia Klang Valley. The sample consisted of managerial and non managerial employees who volunteered to participate in this study. The results supported the hypothesis that distributive and proc edural justice has significant relationship with employee's job satisfaction, organizational commitment and turnover intention. Result: This finding implied that the higher the level of employee's per ception towards fairness to the means used to determine outcomes (procedural justice) and fairnes s of the outcomes employees receive (distributive justice) tended to increase the level of employees' job satisfaction, organizational commitment while reduces turnover intention. Therefore, organization s that take a proactive approach to understand employee's perceptions of distributive and procedur al justice, and provide appropriate working environment can potentially reap benefits including cost associated to employee retentions. Conclusion: The findings in this study would help managers and business organization in Malaysia to formulate strategies that involved work factors such as distributive and procedural justice to improve the management of human resource development. These strategies would help in influencing positive behaviors among employees, and hence achieve effectiveness and high productivity in the organization. Therefore, it was worth the effort for the organization to train and educate their managers on the impact of perceptions of organizational justice on the motivation and commitment of their employees.