Interdisciplinary Journal of Research in Business Vol. 1, Issue. 9, (pp.92- 98) September, October, 2011 Impact of Perceived Organizational Justice on Organizational Commitment of Faculty: Empirical Evidence from Pakistan Prof. Dr. Muhammad Ehsan Malik Dean, Faculty of Economics and Management Sciences/Director, Institute of Business Administration (IBA)/Director General, Gujranwala Campus, University of the Punjab (Pakistan) Email: drmalikehsan@hotmail.com Basharat Naeem Lecturer at IBA, University of the Punjab, Quaid-e-Azam Campus, Lahore (Pakistan) & Ph.D. (Management Sciences) Scholar at COMSATS Institute of Information Technology (CIIT), Islamabad Campus (Pakistan), Email: basharat.naeem1972@yahoo.com ABSTRACT Research in perceived organizational justice got paramount importance in business organizations context by management researchers and psychologist for the last more than 35 years considering its empirically endorsed impact on numerous workforce behaviors and attitudes such as job satisfaction, extra-role performance, organizational commitment, job performance, motivation, trust and turnover intentions. However, scant literature shed light on whether or not teachers’ fairness perceptions regarding rewards allocation, its procedures and interpersonal treatment foster their organizational commitment particularly in higher education setting. To this particular end, the researchers conducted survey research to explore what organizational justice dimensions influence organizational commitment of the faculty taking into consideration their position. Regression analysis of responses from 463 faculty members revealed that distributive and procedural justice had significant positive impact on organizational commitment of junior faculty whereas senior faculty experienced improved commitment on the provision of distributive justice only. Implications for academic administrators and future researchers are presented. Keywords: Organizational Justice, Organizational Commitment, Faculty, Higher Education Institutions (HEIs), Pakistan INTRODUCTION In today’s modern society, intense competition and rapid growth of economy changed the employees’ beat to work which affects their mental and physical development at workplace. In order to understand the organizational behavior, this is inevitable to address the question of how employee’s behaviors and attitudes influenced by the organizational and individual psychological factors (Van Dick, 2004; Rhoades & Eisenberger, 2002). Organizational justice which primarily focuses on the fairness at workplace put stronger impact on different attitudes of the employees like turnover intentions, absenteeism, role breadth, job satisfaction, job performance, leader-member exchange, trust, leadership and organizational commitment (e.g. Bakhshi & Kumar, 2009; Lambert, Hogan, & Griffin, 2007; Hubbel & Chory-Assad, 2005; Byrne, 2005; Wat and Shaffer, 2005; Greenberg, 2004; Judge & Colquitt, 2004; Vermunt & Steensma, 2003; Boer et al., 2002; Colquitt et al., 2001). In the review of organizational justice, Greenberg (1990) notes that "social scientists have long recognized the importance of the ideals of justice as a basic requirement for the effective functioning of organizations and the personal satisfaction of the individuals they employ." Greenberg also declared the justice as the “first virtue of social institutions”. Organizational justice had three broad dimensions e.g. distributive, procedural and interactional justice (Martinez-tur et al., 2006; Yalmiz & Tasdan, 2009). Distributive justice, was known as the first dimension of justice which appear in the literature, refers to “the fairness of outcomes an employee receives such as pay and promotions (Moorman, 1991)”. Procedural justice was introduced by the Thibaut and Walker in 1975 while working in dispute resolution procedures and further defines by the Moormon (1991) as “the fairness of the procedures used in determining employee outcomes” whereas interactional justice describes as “the interpersonal treatment employees receive from decision makers and the adequacy with which the formal decision-making procedures are explained” (Greenberg, 1990). As stated above, numerous researches were conducted on organizational justice and work attitudes of the employees. Most of these studies were conducted on western culture particularly in business context and so far 92 Interdisciplinary Journal of Research in Business Vol. 1, Issue. 9, (pp.92- 98) September, October, 2011 limited literature is available in South Asian context. So, the main purpose this research investigation was to examine to what extent organizational justice dimensions have impact on organizational commitment of faculty members, as critical human resource for sustainable competitive advantage, employed by public and private sector higher education institutions in Pakistan. LITERATURE REVIEW Business performance is often associated with the employee’s commitment which is considered as precondition cooperative behavior. Among numerous other factors which improve commitment, justice perception is recognized as the most sensitive and valued factor considered by the employees. The concept of fairness and justice is known as organizational justice and taken as explanatory factor in organizational environments (Leventhal, 1976; Deutsch, 1975; Adams, 1965). Organizational justice can be defined as the employees’ perception to what extent they are treated fairly and honestly (Elovainio et al., 2005) and whether the process and results obtained at workplace are fair or not (Hubbel & Chory-Assad, 2005). Literature reports multiple facets of organizational justice namely distributive justice, procedural justice and interactional justice (Cropanzano et al. 2001; Konovsky, 2000; Greenberg, 1990). Distributive justice, first justice construct, is mainly concerned with the employee perception about the fairness of outcomes (Greenberg, 1987; 1990) such as financial rewards received from their organization (Greenberg, 2006; Colquitt et al., 2006; Ramamoorthy & Flood, 2004; Elovainio et al., 2004; Aryee, Budhwar, & Chen, 2002). In organizational settings, employee judge the fairness and justice after evaluating different situations according to given criteria and compare it with the standard rules (Colquitt et al., 2006; Alder & Ambrose, 2005; Hubbel & Chory-Assad, 2005). Procedural justice mainly focuses on processes and methods through which outcome decision is made (Ding & Lin, 2006; Farmer et al., 2003; Cropanzano and Greenberg, 1997; Greenberg, 1990). This is employees’ perception about fairness in the rules and regulations which are used to make a decision that will lead to the ultimate outcome (Ding & Lin, 2006; Byrne, 2005; DeConinck & Bachmann, 2005; Greenberg, 2004; Elovainio et al., 2004; Aryee et al. 2002; Greenberg, 2001). Procedural justice consist of various model like control model of procedural justice proposed the indirect relationship of employees and outcomes in the process of decisionmaking whereas process control refers to the employee’s voice during the process of decision making (Hegtvedt, Clay-Warner, & Johnson, 2003) and help the employees to manipulate material outcomes (Price et al., 2006; Ding & Lin, 2006). Leiter and Maslach (2009) noted in their study that there is relationship of control with reward and fairness and facilitate the employees to work accordingly to achieve their needs and develop sustaining work life. Interactional justice is considered as key aspect in workplace settings because of its relationship with unfair and fair treatment (Martı´nez-Tur et al., 2006; Cohen-Charash and Spector, 2001; Frey, 1997). Afterward, literature proved two subcategory of interactional justice known as interpersonal and informational justice and should considered as separately (Colquitt, 2001). Greenberg (1990) proposed two specific type of interpersonal treatment; (1) informational justice who primarily focuses why the specific outcome of an activity had come out in certain fashion, and (2) interpersonal justice provides the degree of which employees were treated with dignity, politeness and respect by people. Organizational commitment is an important aspect in management literature. It refers to the state in which people sense loyalty with their respective organization, aligned themselves with organizational goals and value it (Lambert, Hogan, & Griffin, 2007; Fang, 2001). Fairness and justice offers opportunity to the employees to feel sense of belonging which considered as significant interpreter in organizational commitment. Procedural justice gives the “employees to consider that managerial and organizational decisions are legitimate and this legitimacy promotes commitment of the employees to their organizations (Tallman, Phipps, & Matheson, 2009)”. Robbins et al. (2000) proved the reciprocal association among distributive justice and procedural justice with organizational commitment. In another study, Lambert et al (2007) found that procedural justice and distributive justice significantly contributed to employees’ organizational commitment. However, Griffin and Hepburn (2005) reported that correctional officers at Arizona did not perceive any significant association among organizational justice and organizational commitment. In Colquitt et al. (2001) meta-analytical review of organizational justice literature, he observed that distributive and procedural justice were significant predictors of organizational commitment. Later on Aryee, Budhwar, and Chen (2002) and Ramamoorthy and Flood (2004) found that procedural and distributive justice were linked to higher level of organizational commitment. As regards teachers, Zaman, Ali and Ali (2010) conducted a research on private school teachers of Pakistan and concluded that distributive justice and procedural justice had positive impact on organizational commitment. In another study, Bakhshi, Kumar and Rani (2009) reported positive relationship between distributive and procedural justice with organizational commitment of medical college employees in India. Likewise, Ponnu and 93 Interdisciplinary Journal of Research in Business Vol. 1, Issue. 9, (pp.92- 98) September, October, 2011 Chuah (2010) investigated the relationship of justice and organizational commitment of the employees working diverse organizations at Malaysia, and found that perceptions of procedural justice and distributive justice positively but significantly explaining variance in organizational commitment. Consistent with the prior findings, Najafi et al. (2011) also concluded that educational experts of different universities reported higher commitment levels by the provision of organizational justice. RESEARCH METHODS Self-administered survey questionnaire was used to collect the data from the study participants. The detailed methods and procedures are presented hereunder for addressing the following research question: Research Question 1: Do perceived organizational justice dimensions such as distributive, procedural and interactional justice influence organizational commitment of faculty? Research Question 2: Does faculty position moderate the relationships between organizational justice perceptions and organizational commitment? Data was collected from five Higher Education Commission of Pakistan (HEC) accredited universities and degree awarding institutes operating in Lahore (Pakistan). One of them was a public sector university considered as one of the largest institution of higher learning in Pakistan. On the other hand, four universities and institutes were operating in private sector. The study participants were the faculty members who were either having the regular or contract employment status in these academic institutions. Seven hundred and fifty questionnaires were distributed in December 2009 to February, 2010 among faculty members and after multiple follow ups resulted in 467 (63 %) statistically usable questionnaires. Organizational justice and its three dimensions such as distributive, procedural and interactional justice were measured by using the scale developed by Niehoff and Moorman (1993). Organizational commitment scale consists of 6 items developed in 1991 (General Social Survey). These items were derived from Linclon and Kalleberg’s (1990) American - Japanese work commitment study (cited in Marsden et al., 1993).The inter-item consistency scores of distributive justice (α=0.84), procedural justice (α=0.90), interactional justice (α=0.93) and organizational commitment (α=0.68) were found to be adequate for the analysis purpose. Five point Likert scale was used to assess the perceptions of the faculty members whereby 1 refers to strongly disagree and 5 as strongly agree. Respondents were also asked about their demographic profile such as gender, age, designation, education and job experience, etc. Regression analyses were employed separately for Lecturer, Assistant Professors, Associate Professors and Professor in public and private higher education institutions to testify the research questions. ANALYSIS AND INTERPRETATION Table 1 reflects the demographic characteristics of the faculty serving in higher education institutions (HEIs) of Pakistan. Male respondents were in majority (66%). For age, forty three percent (202) faculty members were between 31 to 44 years. As regard marital status, 69% faculty members were married. Most of the faulty held Master degree (187) followed by M. Phil (172) and PhD (105). Of the respondents, about 53 percent had job experience up to 5 years, 26 percent between 6 to 10 years, 09 percent between 11 to 15 years and 11 percent more than 15 years. About 63 percent of the faculty (292) was working as Lecturer, 27 percent (124) as Assistant Professor, 9 percent as Associate Professor and Professor. Sixty two percent (288) of the faculty was serving in public sector and about 36 percent (166) in private sector HEIs of Pakistan. Table 1: Demographic Profile of Respondents (N=467) Characteristics Frequency % Characteristics Gender: Marital Status: Male 310 66 Married Female 157 34 Unmarried Missing Missing Age: Education: <25 years 34 07 Master degree 25-30 years 148 33 MS / M. Phil 31-44 years 202 43 PhD > 44 years 72 15 Missing Frequency % 321 140 06 187 172 105 03 69 30 01 40 37 23 00 94 Interdisciplinary Journal of Research in Business Missing Designation: Lecturer Assistant Professor Associate Professor & Professor Missing Type of HEI: Public sector Private sector Missing Vol. 1, Issue. 9, (pp.92- 98) September, October, 2011 11 02 Job Experience: 292 124 63 27 44 07 09 01 1-5 years 6-10 years 11-15 years >15 years Missing 288 166 13 62 36 02 249 119 44 49 06 53 26 09 11 01 Table # 2 shows the descriptive statistics such as mean and standard deviations. Table 2: Descriptive Statistics of Study Constructs (N=467) Study Variables Mean Distributive Justice (DJ) 3.78 Procedural Justice (PJ) 3.54 Interactive Justice (IJ) Organizational Commitment (composite) 4.10 3.65 Std. Deviation .90 .95 1.00 .71 The table # 3 is indicative of stepwise regression analyses for Lecturers. Organizational commitment was regressed on three dimensions of justice such as distributive justice, procedural justice and interactive justice. Distributive justice contributed 33 percent unique variance whereas procedural justice explained 4 percent variability in organizational commitment. The results showed that distributive justice had relatively stronger positive impact (β = .43, t = 7.57, p<0.001) on lecturers’ organizational commitment than procedural justice (β = .24, t = 4.21, p<0.001). Table # 03: Regression (Organizational Commitment) for Lecturers ____________________ Distributive Justice (DJ) R2 Change 0.33 R2 Change β (t-statistic) β (t-statistic) Procedural Justice (PJ) 0.43* (7.57) 0.04 0.24* (4.21) Model F-statistic 83.25* * Significant at 0.001 level: One-tailed Results of regression analysis (table # 04) showed that distributive justice explained 20 percent (R 2 change = 0.20) variance in organizational commitment of Assistant Professors and had positive impact on it. However, only 3 percent variance was explained by procedural justice (R 2 Change = 0.03) whereas no significant impact was observed of interactive justice on organizational commitment. The results showed that distributive justice had relatively stronger positive impact (β = .33, t = 3.43, p<0.001) on Assistant Professors organizational commitment than procedural justice (β = .23, t = 2.30, p<0.05). Table 04: Regression (Organizational Commitment) for Assistant Professors _____________ Distributive Justice (DJ) 0.20 R2 change 0.33* (3.43) β (t-statistic) __________ Procedural Justice (PJ) 0.03 R2 Change β (t-statistic) Model F-statistic * Significant at 0.001 level: One-tailed, ** Significant at 0.05 0.23** (2.30) 18.81* level: One-tailed 95 Interdisciplinary Journal of Research in Business Vol. 1, Issue. 9, (pp.92- 98) September, October, 2011 Table # 05 depicts that only distributive justice accounted for 30 percent variance (R 2 change = 0.30, F=17.70*) in organizational commitment of senior professors (Associate Professor and Professor). Interestingly neither procedural justice nor interactive justice had significant impact on organizational commitment of the senior faculty. Table 05: Regression (Organizational Commitment) for Associate Professors & Professors Distributive Justice (DJ) __________________________________________________________ 0.30 R2 change β (t-statistic) Model F-statistic 0.55* (4.21) * Significant at 0.001 level: One-tailed 17.70* As regards moderating impact of faculty position on the relationship between organizational justice dimensions on organizational commitment, it was observed that distributive justice had relatively greatest impact on organizational commitment among senior faculty (β = .33), followed by lecturers (β = .43) and then by assistant professors (β = .33). However the influence of procedural justice among lecturers (β = .24) and assistant professors (β = .23) was not statistically different. CONCLUDING REMARKS According to the recent research endeavors (Najafi et al., 2011, Malik, Nawab, Naeem & Danish 2010; Park et al, 2005), organizational commitment was observed to be one of the extensively studied topics in the management literature. It seems pretty logical as the committed workforce particularly the faculty members could perform effectively to develop the intellectual capital of the future leaders for any nation. This very fact prompted the researchers to investigate what dimensions of organizational justice foster organizational commitment among faculty of higher education institutions and whether or not these relationships are moderated by faculty position. Based on the analyses, it can be concluded that distributive and procedural justice could have their role in making faculty committed to their institutions. Interestingly, procedural justice did not act as antecedent of organizational commitment. These study findings were consistent with the prior research that distributive justice and procedural justice result into improve organizational commitment (e.g. Robbins et al., 2000; Aryee, et al. 2002; Ramamoorthy & Flood, 2004; Lambert et al. 2007; Bakhshi et al. 2009; Zaman et al. 2010; Ponnu & Chuah (2010); Najafi et al. (2011). Only relationship between distributive justice and organizational commitment was moderated by faculty position. As regards practical implications, lecturers and assistant professors serving in higher education institutions could be made more committed by ensuring the fairness in provision of rewards and its procedures by their respective institutions. However, commitment may be fostered in senior faculty by ensuring the higher level of distributive justice. Future researchers, while reviewing our recommendations, should take in to consideration that the current study does not provide conclusive evidence as it followed exploratory research design. 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