The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 4, No. 1, January 2016 Perception of Discrimination on OCB: The Moderating Role of Job Significance Min-woo Lee*, Gi-Ryung Song** & Kyoung-seok Kim*** *Doctor’s Course, Management, Kyungpook National University, Daegu, SOUTH KOREA. E-Mail: midair{at}knu{dot}ac{dot}kr **Doctor’s Course, Management, Kyungpook National University, Daegu, SOUTH KOREA. E-Mail: ryung{at}knu{dot}ac{dot}kr ***Professor, Management, Kyungpook National University, Daegu, SOUTH KOREA. E-Mail: kskim{at}knu{dot}ac{dot}kr Abstract—We designed this research as examining a) the relationship of perception of discrimination and OCB (organizational citizenship behavior), and b) the moderating effect of job significance on the relationship. The sample has 214 respondents who is employees of various corporates of Korea. To test hypotheses, regression analysis is used and OCB is divided into two dimensions of OCB-I, OCB-O according to the classification of Williams & Anderson [18]. As a result, it is founded that perception of discrimination negatively affects both OCB-I and OCB-O. On the contrary, job significance has positive effect on the OCB-I and OCB-O. However, as a result of regression analysis, job significance has no meaningful moderating effect on the relationship between perception of discrimination and OCB-O. Moreover, job significance has negative moderating effect decreasing the slope of discrimination and OCB-I, which means employees having high significance on their job more deeply reduce their OCB-I when they perceive the discrimination. Limitations and implications are demonstrated on the conclusion. Keywords—Job Characteristics; Job Significance; Moderating Effect; Organizational Citizenship Behavior; Perception of Discrimination. Abbreviations—Confirmatory Factor Analysis (CFA); In-Role Behavior (IRB); Organizational Citizenship Behavior-Individual (OCB-I); Organizational Citizenship Behavior-Organization (OCB-O). I. I INTRODUCTION N the imaginary company, we compete with others having homogenous swords and all opportunities are equally distributed so that we are convinced of any results of competitions. But, unfortunately, that is only dream and we are always exposed of discrimination in the real world. In fact, the problem is not about the existence, but the level of it. Since all employees are having different abilities, personalities, networks which they are having and even demographics involving sex, age, education, location and so on, so that the corporates have no alternatives but to invest unequally to employees. The important problem for the companies is that they exposed of danger to lose their extra resources which is not needed to lose during the process of choices. The loss is mainly about their human resources that the employees reducing their extra efforts to make themselves and their organizations improved, because of perception of discrimination. Organizational citizenship behavior (OCB) whose motivation is mainly about reciprocity is a representative concept of the extra efforts performed by employees [Organ et al., 12]. Because that citizenship ISSN: 2321-242X behavior is likely to be triggered by reciprocity, if the employees feel that they are being treated unequally, they will reduce their citizenship behavior. For example, an employee perceive who feels that his or her organization gives unfair opportunities or distributions to them is hard to obey the organization’s rules of practices and they feel cognitive dissonance so that they make an effort to eliminate it through reducing their reciprocal behaviors. OCB is important factor that makes organization healthy and efficient [MacKenzie et al., 17], so its loss is coming to the corporates as huge problem. However, the process from discrimination to OCB does not always occur as same way or level. Externally, companies’ business environment doesn’t allow them to do by themselves. Sometime the environment pushes them to take unequal method, especially when they are in tough competition or they have only insufficient resource and time, and sometimes it gives wide range of selection to the companies. Internal environment involving organization values, practices, ownership, size and so on. Of the internal factors, job characteristics are also taking important effect to organization’s choices and employees’ feelings. © 2016 | Published by The Standard International Journals (The SIJ) 6 The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 4, No. 1, January 2016 This research is focusing on the moderating effect of this job characteristic to the relation between perceptions of discrimination and OCB. Hackman & Oldham [7] demonstrated the five dimensions of job characteristics including variety, identity, significance, autonomy, and feedback. We expect that the negative relation of employees’ perception of discrimination and OCB is moderated by job characteristic, especially by job significance. When the employee take the job which do a significant role in his or her organization, even if they want to reduce their reciprocal behaviors because of the perception of discrimination, they cannot do that because they know that their change of stance has significant effect to the whole job process and the colleagues related to it. Thus we presume that the relationship of perception of discrimination and OCB is becoming weak under the condition of the employees’ whose job is significant to its whole process or organization. In addition, when the employees have a job of low significance, the relationship of perception of discrimination and OCB is stronger than the case of high significance. II. THEORY AND HYPOTHESES 2.1. Perception of Discrimination The research of discrimination has been likely to focus on the demographics such as sex, age, disability and origin [BaylSmith & Griffin, 1; Choma et al., 4; Neumark & McLennan, 11; Ragan & Tremblay, 16]. However, the theme of this study is not on the demographics, but on the just discrimination that embraces even demographics. In this study, we defined the discrimination that employees’ feeling about unfair treatment by organization in various aspects, so we call it perception of discrimination. To discover the aspects that employees could feel discrimination, to begin with, it should be understood where the employees expect the fairness. Of the steps of human resource management, after selection, there are some factors considered as important such as employee development, task distribution, performance evaluation, and promotion. Employee development embraces employees’ job skill, interpersonal skill, know-how, values, and the other abilities needed in the work place. Generally, many companies are using education for this, for examples, the technology seminars related with the companies’ field are regularly opened so that the employees participate that and develop their technical skills or organization conduct the various education programs and make the employees to participate it for development of the employees’ various abilities. Since the education could be the steppingstone for the employees who want to develop themselves or to be promoted, they want and expect that the opportunity to participate the education is distributed to all of them equally. Employees also want to be treated equally at the task distribution. The organization’s whole tasks are fixed at one time but the employees of the organization are having different task each other. It usually belongs to employees’ ISSN: 2321-242X work abilities, current workloads, positions and even their demographics. Occasionally, trivial things determine the distribution. Although, unequal task distribution is inevitable and employees cognize that, task has the feature that one’s task is easy to be compared with others because they are in same organization together and even they are always communicating with each other. Thus, imbalance of task distribution is likely to cause the perception of discrimination. The remaining factors are performance evaluation and promotion, which are about the results of employee performance and those are the most sensitive parts to the employees because those factors are related to rewards of the labor. Employees expect the justice in evaluation and rewarding as important as they consider. They do not want to be influenced by the factors unrelated to the evaluation of their performance in the process of it. Based on the above four parts, the perception of discrimination is defined as opposite concept that the employees cognize the unfair treatment in the parts of opportunity of education, task distribution, performance evaluation, and promotion. Using this concept, we measure the perception of discrimination, which is assumed as the factor influencing OCB. 2.2. The Relationship Discrimination of OCB and Perception of Organ [13] defined OCB as contributions to the maintenance and enhancement of the social and psychological context that supports task performance. He redefined his first definition [Organ, 14] because of shortage of explanation to its three components (discretionary, unrewarded, and aggregate). Although, his first definition had been criticized by the other researchers, his classification of five dimensions of OCB involving altruism, conscientiousness, courtesy, sportsmanship, and civic virtue is still available. OCB is also divided to two parts of dimensions, which is altruism and generalized compliance. The dimension of generalized compliance embraces four dimensions of the five except altruism. These classifications belong to the criterion of content of the behavior. On the other hand, Williams & Anderson [18] suggested different classification that is focusing on the target of the behavior. In the research that examined the job satisfaction and organizational commitment as predictors of OCB and IRB (in-role behavior), they divided the target of OCB into two groups of individual and organization. The citizenship behaviors whose target is individual were named as OCB-I and the other behaviors against organization were named as OCB-O that the initials of each concept were used. In fact, OCB-I is the concept that is matching with altruism and OCB-O is same with generalized compliance. Williams & Anderson [18] were also mentioning on their paper that there are two reasons. First, they avoided using the altruism and compliance because those concepts imply restrictive assumptions about rewards of performance. For example, altruism is likely to be seen as pure behavior considering © 2016 | Published by The Standard International Journals (The SIJ) 7 The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 4, No. 1, January 2016 others regardless of any external rewards, and compliance is same as altruism. Second, they desired to prevent the confusion between their concepts and previous concepts, so that they labeled two dimensions as OCB-I and OCB-O. Based on the social exchange theory [Homans, 9; Blau, 2], which takes important role of motivation theory of OCB. Motivation of OCB could be divided into two macro groups of social exchange and non-social exchange. Non-social exchange is about the citizenship behavior which is triggered by disposition, feeling, mood, value, and even personality that are related to the performer’s individual factors. On the contrary, social exchange means that people are having the relationship that they deal with their society or its members, and the exchanged things are not only tangible but also intangible. The explanation of motivation of social exchange theory to OCB focuses on the interaction of performer and performer’s organization or its colleagues. The theory has two dimensions composed of obligation to reciprocate and expected reciprocity [Coyle-Shapiro. 5; Cropanzano & Mitchell, 6; Korsgaard et al., 10]. Employees who perform the OCB by obligation to reciprocate desire to make a return for the benefits which they have been received by their organizations. They want to give the positive effects to the organization via performing OCB as much as they have been received. Unlike this, expected reciprocity is about the employee’s expectation that they could get some benefits through doing OCB. The performer whose motivation is on the expected reciprocity has their own special goal different with the pure purpose of OCB, so that these behaviors are sometimes called ‘political behavior’. Most of employees have above motivations as mixed and the employees are almost never having only one motivation. Since, most of employees are having the motivation of obligation to reciprocate, they sensitively respond to the negative effects from the organization. If employees feel that they are unfairly treated or that there are discrimination in the organization, they are likely to reduce their extra efforts such as OCB-I and OCB-O. For example, if one employee experienced the discrimination at the task distribution that he or she received heavy workloads for other members and they couldn’t understand that treatment, they will easily lose their faith to the organization and they will stop to make an effort to obey the rule or practice of organization. Based on these background theories, hypothesis 1 is established Hypothesis 1. Perception of discrimination has negative effect on both OCB-I and OCB-O. 2.3. The Moderating Effect of Job Characteristics In the business field, there are lots of jobs that are having various features. Hackman & Oldham [7, 8] suggested the five core job characteristics that are variety, identity, significance, autonomy, and feedback. Variety means that the degree of diversity of skills and talents required for the job and identity is about the degree of integration and completion of the job. Significance is the degree of effects of the job to other colleagues or whole work process and autonomy is the degree of the employee’s power that he or she could exert in ISSN: 2321-242X the job. Finally, feedback is about the degree of provided information of progress or significant thing to report [Piccolo & Colquitt, 15]. Chen & Chiu [3] empirically proved that the indirect effects of job characteristics to OCB. They found that the four dimensions of job characteristics (variety, identity, significance, and autonomy) are having significant relationship with job involvement that is immediately linked with OCB. Moreover, identity, significance, and autonomy had positive effects to job involvement excepting variety that had only negative effect. It is shown that feedback has no significant relationship with job involvement. On the other hand, Piccolo & Colquitt [15] examined the mediating effect of job characteristics to the relationship between transformational leadership and job behaviors involving task performance and OCB. In this research, they found that the latent variable of job characteristics has positive effect to intrinsic motivation and goal commitment, and the intrinsic motivation is positively related to two job behaviors and goal commitment has positive effect to only task performance that is one of two job behaviors. Consequently, job characteristics are indirectly related to task performance and OCB with positive effects. Based on the finding that job characteristics has the effect to OCB, it could be considered that job characteristics do a moderating role between perception of discrimination and OCB. However, of the five job characteristics, we only assume that job significance has a moderating effect except other four job characteristics. When, the employee feels discrimination in the organization, they will give up performing OCB. But, if they do not reduce their extra efforts even though they are under the unfair treatment, why are they doing that? For what? Of the five job characteristics, significance is best suited for the reason. Although, employees cognized that they received unjustifiable treatment, they couldn’t give up the OCB because they had already known that the results which are derived from decreased OCB they reduced could adversely influence the whole job process or other colleagues who is related to the job. They want to reduce OCB, but they don’t do that because of significance of their job. We postulate hypothesis 2 according to above deduction. Hypothesis 2a. Job significance has a moderating effect on the relationship between perception of discrimination and OCB-I. Hypothesis 2b. Job significance has a moderating effect on the relationship between perception of discrimination and OCB-O. III. METHOD AND ANALYTIC STRATEGY Data for this study were collected from firms of Korea. The sample which is used in this research has 214 respondents composed of 116 male (54.2%) and 98 female (45.8%) and the positions most were ordinary employees, 127 (59.3%), 50 respondents were assistant manager (23.4%), 22 respondents were section chief (10.3%) and 15 were department head or © 2016 | Published by The Standard International Journals (The SIJ) 8 The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 4, No. 1, January 2016 deputy head (7.0%). Unlike position, tenure was evenly that 49 respondents (22.9%) were under 2 years, 70 respondents were from 3 to 5 years (32.7%), 66 respondents were from 6 to 10 years (30.8%) and 29 respondents had above 11 years tenure (13.6%). To test hypotheses, we use regression analysis by SPSS 22.0. The equation of regression analysis is made of 3 models. At the model 1, we insert the control variables only and next, at the model 2, the variable of perception of discrimination is inserted into previous equation. Through the results of model 2, hypothesis 1 is examined whether it is supported or not. Finally, at the model 3, the single term of job significance and the interactive term that is perception of discrimination × job significance are added, and hypothesis 2 is tested together. Since, we have two dependent variables which are OCB-I and OCB-O, the analysis is separated by two steps. The regression equations are being shown below. OCB = β0 + β1·CV + ε OCB = β0 + β1·CV + β2·PD + ε OCB = β0 + β1·CV + β2·RO + β3·CSR + Model 3. β4·RO·CSR + ε CV = Control variables, OCB = OCB-I and OCB-O, PD = Perception of discrimination, JS = Job significance. Model 1. Model 2. IV. MEASURES Perception of Discrimination We used four dimensions of discrimination that were theoretically classified in advance at the part of back ground theory. One item was derived from each dimension of the four which are education, task distribution, performance evaluation, and promotion. The questionnaire had the similar content that “I’m feeling that I received discriminative treatment about education opportunities (or promotion opportunities, performance evaluation, task distribution)”. All questionnaires were measured by 5 points Likert type scale. Since, items of this measure were intentionally established by us, we examine the validity of this via Confirmatory Factor Analysis (CFA). As a result of the analysis, standardized regression weights of all dimensions were satisfying the criterion (minimum value = .673), and other model fits were also adequate (CMIN = 20.359 [df = 2], GFI = .958, CFI = .968, RMR = .036). Cronbach α was .898 that is fine value. Organizational Citizenship Behavior (OCB) Williams & Anderson [18] used 14 items for measuring OCB-I and OCB-O composed of each of 7 items. The questionnaires of OCB-I have the contents that are similar to altruism or helping others, but OCB-O is involving the various type of contents that are mixed with sportsmanship, courtesy, conscientiousness, and protecting organizational property. Because of the feature of OCB-O, this measure had a narrow Cronbach α value .611. At a rigorous standard, this α value under .7 could be a problem that this research variable doesn’t have the reliability to proceed analysis, but considering the feature of OCB-O and employing the generous standard, we could allow to use OCB-O variable ISSN: 2321-242X above .6 α value. Unlike OCB-O, OCB-I had appropriate α value .872, because it has the relatively consistent contents, for examples, “helps others who have been absent”, “takes a personal interest in other employees”. OCB-O include items such as “attendance at work is above the norm”, “conserves and protects organizational property”. Job Significance There have been some ways to classify job characteristics among researchers. In this research, we are using the measure Hackman & Oldham [7, 8] used. They used job significance to explain that the job has important role and effects to all things related with it. We extracted only the part of significance of five dimensions of job characteristics, for examples, “the results of my job immediately influence on the other employees”, “of the corporate’s jobs, mine is very important”. Cronbach α value of significance is .759 meeting the criterion. V. RESULT Before demonstrating the results whether the hypotheses are supported or not, we check the probabilities that there is multicollinearity or autocorrelation. VIFs and Durbin-Watson value of regression analysis are used to test these problems. Satisfactorily, all values are being distributed in safe range, which VIFs are from 1.029 to 1.640 and Durbin-Watson values are 1.965 and 2.079 on the OCB-I and OCB-O. Table 1 and 2 are showing the results of regression analyses. The regression coefficients of analyses of OCB-I and OCB-O are showing that the relationship between perception of discrimination and OCB-I, O is negative. Of the analysis on OCB-I as dependent variable, perception of discrimination has -.282 β value (t value = -4.330, p < 0.001) on the model 2 and the regression coefficient of the analysis on OCB-O is also negative that is -.242 β value (t value = 3.612, p < 0.001), so that the hypothesis 1 is supported. Table 1: The Result of Regression Analysis on the OCB-I Model 1 Model 2 Model 3 Variable β t value β t value β t value Sex .204 2.383* .222 2.698** .199 2.682** Age .196 2.422* ..192 2.479* .093 1.310 Education .134 1.528 .150 2.276* 1.761 .112 -.282 Discrimination -4.330*** -.249 -4.246*** Significance .422 7.143*** Discrimination × Significance -.123 -2.087* F 3.484* 7.521*** R2 .047 .126 15.218*** .306 ∆R .047* .078*** .180*** *** p< .001, ** p< .01, * p< .05, N=214, independent variable: OCB-I, two-tailed test. © 2016 | Published by The Standard International Journals (The SIJ) 9 The SIJ Transactions on Industrial, Financial & Business Management (IFBM), Vol. 4, No. 1, January 2016 As seen in the model 3 on the table 1, the single term of job significance and interactive term with discrimination are both having significant regression coefficient. The single term of moderating variable has β value as .422 (t value = 7.143, p < 0.001) meaning that it positively affects OCB-I. However, the interactive term of perception of discrimination and job significance has the negative significant regression coefficient which β value is -.123 (t value = -2.087, p < 0.05). This result implies that the variable of significance has a role that enhances the relationship between perception of discrimination and OCB-I. On the contrary to our previous assumption, job significance adversely drops the OCB-I under the discrimination, which means that if the employee under the high job significance perceives unfair treatment, they will more reduce their extra efforts against other employees. Although, hypothesis 2a is supported because it is about the existence of moderating effect of job significance, the directivity and content are different with our expectation. Table 2: The Result of Regression Analysis on the OCB-O Model 1 Variable Model 2 Model 3 β t value β t value β t value Sex .083 .958 .098 1.167 .101 1.245 Age .150 1.831 .147 1.847 .093 1.195 Education .071 .918 .690 .083 1.152 .052 -.242 Discrimination -3.612*** -.224 -3.503*** .310 4.819*** Significance Discrimination × Significance F R 2 ∆R 2 .031 .491 1.628 4.552** 7..324*** .023 .080 .175 .023 .057*** .095*** *** p< .001, ** p< .01, * p< .05, N=214, independent variable: OCBO, two-tailed test. The result of regression analysis on the OCB-O is on table 2, which is showing that the interactive term is not having any significant coefficient to OCB-O. However, the single term of job significance has effective regression coefficient, which is positive meaning that job significance influences OCB-O to be increased. Unlike our expectation, on the case of OCB-O, job significance has no significant moderating effect, so that the hypothesis 2b is not supported. On the other hand, of the control variables, sex and age are only has an meaningful relation with the OCB-I, and, on the OCB-O, all control variables even education are not related to the dependent variable. VI. CONCLUSION Limitations Hackman & Oldham [7, 8] used the five dimensions to classify job characteristics, but, in this research, we are only using the one dimension, job significance. Considering that ISSN: 2321-242X job characteristics are important factor influencing the employees’ attitudes, it is advisable that all five job characteristic dimensions as moderating variable. The researchers should merely watch out the complexity of the research model when they are using the five dimensions as control variable. It could be considerable the way that integrates job characteristics as one latent variable or it is also available that the researchers divided job characteristics into some groups of type via using clustering analysis. In addition, there was a problem that OCB-O had narrow Cronbach α value that threated the reliability of research model. OCB-O is originally composed of diverse questionnaires that embrace four other OCB dimensions except altruism so that it is likely to lose the consistency of the contents. Finally, decisively, we didn’t expect the results showing that job significance doesn’t have the moderating effect doing a buffer role for the negative relationship of perception of discrimination and OCB so that it is needed for further study about the phenomena. Implications Hypothesis 1 is supported as we expected, which means that the employees who felt unfair treatment from their organization are reducing their extra efforts such as OCB-I and OCB-O. Cognitive dissonance could be occurred under the perception of discrimination, and then the employees make an effort to eliminate the dissonance through stopping their reciprocal behavior. Although, unbalanced investment and unfair treatment for employees sometimes are inevitable, managers should be careful for the decreasing their human resources’ performance, especially extra performance. OCB is the important factor that makes organizations competitive, but it is also hard to be triggered and controlled because it is discretionary behavior. It is useful to managers that they are reducing the discrimination through eliminating unjust system or process and shared the organization practice orientated toward equalitarianism. On the other hand, it still remains as a question that future research should focus on that the employees in the significant job are showing deeply decreasing of OCB-I when they perceive discrimination. Clearly, they have a responsibility to their position, however, they too easily lose their passion. 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