Fair Treatment, Job Involvement, and Turnover Intention of
Professional Employees in Government: The Importance of
Organizational Identification as a Mediator
Shahidul Hassan
John Glenn School of Public Affairs
The Ohio State University
Fair Treatment, Job Involvement, and Turnover Intention of
Professional Employees in Government: The Importance of
Organizational Identification as a Mediator
ABSTRACT
Although fairness is critical to effective human resource management, little effort has
been made to assess the role fairness plays in facilitating positive and preventing negative
employee outcomes in government agencies. Using data collected through a survey of 764
professional employees from a large state agency, this study examined the relationship between
perceived organizational justice and employees’ organizational identification, job involvement
and turnover intention. The findings indicated that perceptions of procedural and distributive
justice have positive effects on employees’ job involvement and negative effects on their
turnover intention, though these relationships are mediated by identification with the agency.
Implications of these findings for theory and practice are discussed.
INTRODUCTION
Justice--a term that often is interchangeably used with fairness by social scientists--is a
core principle upon which legal and political institutions are designed and operate in the United
States. Fairness also is fundamental to the administration of government agencies (Battaglio and
Condrey 2009).
Existing civil service procedures concerning the selection, evaluation,
promotion, and termination of employees in government agencies largely are guided by
principles of fairness (Rubin 2009). Nevertheless, we know little about the role, if any, that
fairness plays in facilitating positive outcomes and preventing negative consequences in
government agencies.
The limited amount of research that has been completed in government work settings
suggests that fair treatment can improve employees’ trust in management, increase satisfaction
with their jobs, supervisors and organizations, strengthen their organizational commitment, and
reduce their intention to leave their agency (Alexander and Ruderman 1987; Choi forthcoming;
Hassan and Rohrbaugh forthcoming; Kurland and Egan 1999; Noblet and Rodwell 2009; Rubin
2009). Clearly, these findings highlight the importance of fairness in public administration, but
they do not elucidate the underlying psychological mechanism through which organizational
fairness perceptions may influence employee outcomes in public agencies.
The present study examined the role of procedural and distributive justice with respect to
two important outcomes--job involvement and turnover intention. This study focused on job
involvement because it is closely associated with employees’ work motivation and goal-directed
behaviors (Kanungo 1982; Lawler, 1992; Lodahl and Kejner 1965; Paullay et al. 1994).1 It is
well known that public sector employees are engaged by a concern for their community and
1
Job involvement refers to the degree to which individuals are cognitively preoccupied with, engaged in, and concerned with their present job
(Paullay et al. 1994: 224). It is a cognitive state pertaining to an individual’s psychological connection to the current job (Lawler and Hall 1970).
1
desire to serve the public interest (Houston 2000; Perry and Wise 1990). A positive relation
between public service motivation and job involvement also has been shown (Moynihan and
Pandey 2007). Further, related research has indicated that a variety of organizational and jobrelated factors can influence government employees’ motivation and involvement in their work
(see, for example, Pandey, Moynihan, and Wright 2008; Ward and Park, 2010; Wright 2004,
2007). While this research has provided valuable insight, little effort has been made to assess
whether fairness experiences may motivate employees in government agencies to become more
involved in their jobs.
Additionally, this study focused on professional employees’ turnover intention because of
the strategic value of their intellectual capital in government agencies, as well as the significant
direct and indirect costs involved in replacing skilled professional employees (Moynihan and
Pandey 2008). Previous research has shown that turnover of skilled employees can have serious
negative consequences, including a decline of organizational performance (Meier and Hicklin
2008). Further, when skilled employees leave, agencies lose the source of valuable institutional
knowledge, requiring resources to be spent on recruiting and training new employees rather than
invested in sustaining important public programs (Moynihan and Pandey 2008).
Fair treatment can be an effective mechanism for lowering professional employees’
intention to leave their current agency. Several previous studies have found a negative relation
between perceptions of procedural and distributive justice and federal employees’ turnover
intention (Choi forthcoming; Rubin 2009).
The present study built upon this research by
clarifying the underlying process through which fairness perceptions may affect professional
employees’ turnover intention. This effort was guided by the social identity perspective (Tajfel
and Turner 1979, 1986; Turner 1985) and group-oriented organizational justice theories (Lind
and Tyler 1988;Tyler and Lind 1992; Tyler and Blader 2000, 2003). According to these theories,
2
fair treatment provides employees with important feedback about their social status and standing
in their organization. Further, this positive feedback increases their organizational identification
(Ashforth and Mael 1989; Ashforth, Harrison, and Corley 2008), which, in turn, motivates them
to become more involved in their jobs and influences their continuing work in their present
organization. Using data collected through a survey of 764 professional employees from a state
agency, this study relied on structural equation modeling to assess the role organizational
identification as a mediator in the relation between procedural and distributive justice
perceptions and professional employees’ job involvement and turnover intention.
THEORY AND HYPOTHESES
The specific pattern of relationships among the five variables examined in this study is
shown in Figure 1, and the theories on which they are based are reviewed below. First, an
overview of organizational justice and its importance in managing employees in government
agencies is provided. Second, the social identity perspective (Tajfel and Turner 1979, 1986;
Turner 1985) and the concept of organizational identification (Ashforth and Mael 1989; Ashforth
et al. 2008) are reviewed. Third, based on the group-oriented organizational justice theories
(Lind and Tyler 1988;Tyler and Lind 1992; Tyler and Blader 2000, 2003), seven research
hypotheses that were empirically tested in this study are presented.
--------------------------------INSERT FIGURE 1
----------------------------------
Organizational Justice
Organizational justice generally is conceptualized in terms of employees’ perceptions of
fairness in their workplaces (Colquitt, Greenberg, and Zapata-Phelan 2005). Organizational
justice is a multidimensional construct that consists primarily of two components—distributive
and procedural justice.
While distributive justice refers to fairness in the allocation of
3
organizational rewards and resources among employees (Adams 1965; Homans 1961),
procedural justice concerns the fairness of formal policies and procedures used in making those
allocation decisions (Leventhal, 1980; Lind and Tyler, 1988).
Moreover, an additional
component of organizational justice known as interactional justice has been proposed recently,
that is, the quality of interpersonal treatment employees receive from authorities during the
implementation of formal procedures (Bies 2000). 2
The present study focused on distributive and procedural justice due to their close
association with a variety of beneficial employee outcomes (Colquitt et al. 2001; Cohen-Charash
and Spector 2001). Procedural and distributive justice are related but different concepts. It has
been shown in previous research that employees develop perceptions about distributive and
procedural fairness in different ways (Colquitt 2001). Employees consider the allocation of work
rewards to be fair when it is consistent with expected norms such as equity, equality, and need
(Colquitt et al 2005). Further, decision-making processes are perceived to be fair when they are
accurate, consistent, unbiased, correctable, representative, and ethical (Leventhal 1980;
Leventhal, Karuza, and Fry 1980; Thibaut and Walker 1975).
Importance of Justice in Government Agencies
Justice serves a normative function in government agencies by providing legitimacy to
decisions made by government authorities (Rubin 2009). Legitimacy of government actions is
an important issue in both classical and contemporary public administration scholarship (Mosher
1968; Waldo 1948). Citizens’ perception of legitimacy of government actions partly depends on
their personal experiences with street-level bureaucrats as they seek various public services.
Fairness during those interactions can inform citizens about the appropriateness of government
2
Although recent research has shown international justice can be empirically distinguishable from procedural justice (Colquitt 2001), there still
remains disagreement whether interactional justice is conceptually distinct from procedural justice.
4
decisions and can influence them to accept and comply with those decisions (Tyler and Degoey
1995).
Moreover, fair treatment by government authorities sends important signals about
positions and social worth of underprivileged groups in a society (Lens 2009).
Justice also is critical for effectively managing employees in government agencies. It is a
guiding principle for cooperative social actions in the workplace (Barnard 1938). Individuals
care deeply about how they are treated in their workplaces, and their perceptions of
organizational justice may largely influence the nature of their relationship with and feelings
about their organizations (Folger and Cropanzano 1998). Previous research has shown that
perceptions of organizational justice are important predictors of job satisfaction, organizational
commitment, turnover intention, job performance, and organizational citizenship behaviors
(Colquitt et al. 2001; Cohen-Charash and Spector 2001).
Despite its relevance, organizational justice has not received substantial attention in
public administration scholarship. Further, although the larger community of organizational
researchers already have engaged in considerable study of organizational justice, only a small
amount of that work has been completed in government agencies (Alexander and Ruderman
1987). The limited amount of research that has been completed in public sector settings has
provided some evidence about the importance of fairness in managing employees in government
agencies.
For instance, Choi (forthcoming) and Rubin (2009) have found that federal
employees’ perceptions of procedural and distributive fairness are closely related to their job
satisfaction, trust in management, and turnover intention. In another recent study, Hassan and
Rohrbaugh (forthcoming) have shown that the perception of organizational justice is an
important predictor of organizational commitment of employees in state agencies. Further,
Kurland and Egan (1999) have found that procedural and distributive justice perceptions are
positively linked with local government employees’ satisfaction with their supervisors. These
5
findings indicate that employees in all levels of government value fair treatment, but they do not
explain how fairness perceptions lead to such outcomes.
The group value model (Lind and Tyler 1988), relational model of authority (Tyler and
Lind 1992) and group engagement model (Tyler and Blader 2000, 2003) provide important
insight about why employees value fair treatment in the workplace. These group-oriented
organizational justice theories are based on the social identity perspective (Tajfel and Turner
1979, 1986; Turner 1985) and suggest that employees value fairness because it provides them
with important information about their social status and standing in their organization. According
to these perspectives, the positive feedback employees receive from their experiences with
procedural and distributive justice enhances their collective self-esteem and helps them to
develop a positive social identity (Tyler and Blader 2000). Identification with the organization,
from this perspective, plays a mediating role in the relation between fair treatment and
employees’ cooperative attitudes and behaviors towards their organization.
Organizational Identification
Organizational identification refers to perception of oneness with or belongingness to the
organization, where individuals define themselves in terms of the organization of which they are
a member (Ashforth and Mael 1989; Ashforth et al. 2008). This definition has roots in the social
identity perspective, which comprises theories of social identity (Tajfel 1978; Tajfel and Turner
1979, 1986) and self-categorization (Turner 1985). Social identity from this perspective is
defined as ―the individual’s knowledge that he belongs to certain social groups together with
some emotional and value significance to him of the group membership‖ (Tajfel, 1972: 292).
Additionally, identification is a socio-cognitive process through which individuals categorize
themselves and others as members of particular groups because they need to simplify and make
6
sense of the complex social world (Hogg and Terry 2001). Social categorization provides
individuals with a means to clarify who they are (Turner 1985) and, subsequently, guide their
interactions with members of their own and other groups (Hogg and Terry 2001).
An organization can be a primary source of an individual’s social identity (Hogg and
Terry 2001).
Further, organizational identification has important implications for both
employees and the organizations in which they work. Identification with an organization helps
individuals to enhance collective self-esteem (Ashforth et al. 2008).
Additionally, when
employees identify strongly with their organization, the differences between their personal and
their organizational identities become blurred (Dutton, Dukerich, and Harquail 1994).
Consequently, employees assimilate into their self-concepts the distinctive, central, and enduring
attributes that define their organization (Dutton et al. 1994). Employees feel the successes and
failures of their organization as their own, and they engage in behaviors that help the
organization to achieve its goals.
Organizational identification is a multidimensional construct that consists of a cognitive
and an evaluative component.
The cognitive component captures the extent to which
individuals’ organizational membership is self-defining and how they see themselves in relation
to their organization (Ashforth et al. 2008). The evaluative component encompasses the value
that individuals attach to their organizational membership (Ashforth et al. 2008). Specifically, it
indicates what individuals think and feel about their organizational membership (e.g., pride
versus shame). It is closely associated with individuals’ emotional reactions to their organization
that can be both positive and negative (Dutton et al. 1994).
Much of past research on organizational identification focused on the effects of its
cognitive component on employees’ work attitudes and behaviors. The evaluative component of
organizational identification has received only limited attention in previous research (Blader and
7
Tyler 2009). This is quite surprising, given that the impact of individuals’ social identity on their
attitudes and behavior is determined largely by the extent to which their identity fosters personal
and collective self-esteem and contributes positively to their self-image (Haslam, Powell, and
Turner 2000). Focusing on the evaluative component, therefore, appears to be critical for a
better understanding of the impact of organizational identification on work attitudes and
behaviors (Ashmore, Deaux, and McLaughlin-Volpe 2004; Blader and Tyler 2009).
This study focused on the role of the evaluative component of organizational
identification—pride in organizational membership—as a mediator of the relationship between
public sector employees’ perceptions of procedural and distributive justice and their job
involvement and turnover intention. Pride in organizational membership refers to employees’
evaluation of the general worth and status of their employing organization (Blader and Tyler
2009). It is an intergroup evaluative judgment that directly captures the evaluative aspect of
group identification (Blader and Tyler 2009). While making such judgments, employees pay
close attention to the values, beliefs, and goals that they perceive as commonly held by
themselves and their organization (Blader and Tyler 2009; Tyler 2001).
Hypothesis for Procedural Justice and Organizational Identification
This study expected that perceptions of procedural fairness would have a positive effect
on professional employees’ organizational identification.
According to the group-oriented
organizational justice theories (Lind and Tyler 1988; Tyler and Lind 1992; Tyler and Blader
2000), an important basis of employees’ evaluation of the status of their organizational
membership is likely to be their perceptions of fairness in the formal policies and procedures
used in the decision-making processes of their organizations.
Procedural justice provides
feedback on which employees rely to determine the nature of their relationship with their
8
organization (Lind and Tyler 1988; Tyler and Blader 2000; Tyler and Lind 1992). This feedback
specifically indicates employees’ social status and standing in an organization, whether they can
develop and maintain satisfying social identity based on their organizational membership (Tyler
and Blader 2000, 2003). From this perspective, professional employees’ pride in their
organizational membership is expected to flow directly from their perception of procedural
justice. Past research also has provided support for this argument (Blader and Tyler 2009; Tyler
and Blader 2000; Tyler and Degoey 1995). These studies, however, did not focus on employees
in a public sector setting.
H1 Procedural justice will have a positive influence on organizational identification.
Hypothesis for Distributive Justice and Organizational Identification
Another important basis of employees’ evaluation of the status of their organizational
membership is their perception of the extent to which work-related rewards are allocated fairly in
their organization (Blader and Tyler 2009). Employees generally expect that the distribution of
organizational rewards will be proportional to their work efforts (Adams 1965; Homans 1961).
Further, it is widely acknowledged that equity in the allocation of rewards is an important source
of employees’ work motivation (Greenberg 1982; Latham and Pinder 2005). There also is a
growing body of work that indicates that rewards and resources have symbolic value beyond
their instrumental effects (Jenkins, Mitra, Gupta, and Shaw 1998; Porter, Bigley, and Steers
1996). The group engagement model suggests that distributive justice provides information
similar to that conveyed through procedural justice (Tyler and Blader 2000, 2003). It also
indicates to employees whether they can safely make identity-related investments in their
organization (Blader and Tyler 2009). Hence, distributive justice is likely to have a positive
effect on professional employees’ organizational identification. Two recent field studies have
9
found a positive relation between distributive justice and organizational identification (Blader
and Tyler 2009; Olkkonen and Lipponen 2006), but this linkage has not been tested in a
government work setting. Thus, the present study examined the following hypothesis:
H2 Distributive justice will have a positive influence on organizational identification.
Hypothesis for Organizational Identification and Job Involvement
The present study anticipated that organizational identification will have a positive
influence on professional employees’ job involvement. The social identity perspective suggests
that, when individuals’ make status judgments about their group membership, they focus on their
feelings about the prototypical characteristics that define the group (Tajfel 1978). Positive
evaluation of group membership increases individuals’ collective self-esteem and contributes
positively to their self-concept (Ellemers, Kortekaas, and Ouwerkerk 1999; Smith and Tyler
1997). Positive assessment of group membership, therefore, is likely to result in the blurring of
differences between individuals’ personal and group identities (Hogg and Terry 2001). Hence,
pride in organizational membership may lead employees to act in accordance with their
organization’s values, beliefs, norms, and goals (Hogg and Terry 2001).
Following this
perspective, one might argue that, when professional employees take pride in their organizational
membership, they are likely to internalize the goals and values of their organization as their own
which, in turn, may motivate them to become more involved in their jobs (Van Knippenberg
2000). Hence, the following hypothesis was tested in the present study:
H3 Organization identification will have a positive influence on job involvement.
Hypothesis for Organizational Identification and Turnover Intention
The present study anticipated that, when professional employees take pride in their
organizational membership, they are more likely to remain with their organization. The social
10
identity perspective suggests that identification is a socio-cognitive process in which individuals
evaluate the status of their own group by comparing it with other groups on several value
dimensions (Tajfel and Tuner 1979, 1986). Favorable comparisons between the in-group and
out-groups provide in-group members with a sense of prestige and positive social identity. In
contrast, unfavorable comparisons between the in-group and out-groups provide in-group
members with a sense of low prestige and negative social identity. Additionally, the social
identity perspective suggests that enhancing self-esteem is a fundamental human motivation
(Tajfel and Turner 1979, 1986). The need for positive self-esteem motivates individuals to
enhance the image of their own group in comparison with other groups. Further, when a group
lacks a positive image, its members may attempt to disassociate themselves cognitively from that
group and seek membership in a higher status group (Tajfel and Tuner 1979, 1986). From this
perspective, when membership with a public agency helps employees to maintain a positive
social identity, they are less likely to disassociate themselves from that agency. Several previous
studies have found a negative relation between organizational identification and turnover
intention (Abrams, Ando, and Hinkle 1998; Moura, Abrams, Retter, Gunnersdottir, and Ando
2009; Olkkonen and Lipponen 2006). However, this research focused on the cognitive rather
than the evaluative aspect of organizational identification.
H4 Organizational identification will have a negative influence on turnover intention.
Hypothesis for the Mediating Role of Organizational Identification
When professional employees in a government agency perceive that their work outcomes,
as well as the administrative procedures leading to the decisions about those outcomes, are fair,
they are likely to become more involved in their jobs and continue working in that agency. This
study anticipated that these positive influences would be mediated by their organizational
11
identification. The group engagement model (Tyler and Blader 2000, 2003) suggests that
employees’ cooperative attitudes and behaviors in the workplace largely are determined by their
social identification with their organization. Further, individuals develop such identification
through feedback about whether their work efforts are valued by their organization and whether
they have high social status and standing in their organization (Tyler and Blader 2000, 2003).
Additionally, this identity-relevant feedback originates from employees’ procedural and
distributive justice experiences in their organization (Tyler and Blader 2000, 2003). Following
these assertions, this study anticipated that perceptions of procedural and distributive justice
would indirectly affect employees’ job involvement and turnover intention through their
organizational identification. These indirect relationships have not been thoroughly examined in
previous research. In a recent study, Olkonnen and Lipponen (2006) surveyed 270 professional
employees in a Finish research institute and found the only existing support for the mediating
role of organizational identification in the relation between justice perceptions and turnover
intention.
Also, the relations between job involvement and both procedural justice and
distributive justice have not been thoroughly examined. Neither has the role of organizational
identification as a mediator in the relationship between perceptions of organizational justice and
job involvement been investigated in previous research.
H5 The effects of procedural justice on job involvement and turnover intention will be
mediated by organizational identification.
H6 The effects of distributive justice on job involvement and turnover intention will
be mediated by organizational identification.
12
Hypothesis for Job Involvement and Turnover Intention
The final hypothesis that this study examined concerns the effect of job involvement on
professional employees’ intention to leave their agency. When employees in an organization
find their work important, meaningful, and intrinsically rewarding, they generally become highly
engaged in their work. Additionally, when employees are highly engaged in their job, they are
more likely to stay in that job and in that organization. Past research also consistently found a
moderate relationship between job involvement and turnover intention. A meta-analysis of job
involvement by Brown (1996) reported a significant negative correlation between job
involvement and actual turnover, as well as between job involvement and turnover intention.
Given these results, a similar pattern of connection was expected in the present study:
H7 Job involvement will have a negative influence on turnover intention.
METHOD OF THE STUDY
The present study was conducted with an organizational survey of all employees in
geographically dispersed offices of a New York State agency with twelve distinct divisions of
operation. Before initiating the study, the state agency was experiencing a high level of turnover
of professional and technical employees.3 This survey was conducted as part of a long-term
research project undertaken by the state agency with a goal of assessing and improving its work
climate and increasing employees’ organizational identification and reducing turnover. Data
were gathered through the design and use of a unique, eight-page survey of 2614 employees in
2008. Responsibility for internal distribution and collection of surveys was assigned to division
managers of the state agency.
Prior to distributing surveys, the division managers clearly
communicated to all participants about the purpose of the study, the voluntary nature of their
3 The annual rate of employee turnover in the state agency was estimated to be close to ten percent, a large portion of which included skilled
professional and technical employees (e.g., auditors, accountants, lawyers, and information technology professionals).
13
participation, and the complete anonymity of their responses. Altogether, 2136 usable surveys
were returned for an overall response rate of 82 percent; response rates by division ranged from a
low of 70 percent to a high of 100 percent.
Because this study focused on the effects of professional employees’ perceptions of
distributive and procedural justice on their organizational identification, job involvement, and
turnover intention, only employees belonging to occupational groups classified as professional
were included in the analysis. This included respondents who identified themselves as technical
and managerial employees and were at and above the salary grade 18 and below salary grade
27.4 Using these criteria, data from 764 professional employees were included in the analysis.
The professional employees in this agency primarily were auditors, lawyers, and information
technology specialists. Demographic data for the sample are summarized in Tables 1 and 2.
------------------------------------INSERT TABLES 1 & 2
-------------------------------------
Respondents completed a 130-item survey designed in large part to examine employees’
perceptions of their work climate, job characteristics, and work attitudes. The survey included
items to assess employees’ perceptions of distributive and procedural justice, as well as their
organizational identification, job involvement, and turnover intention.
In addition to the
variables that were relevant for the present study, data were collected for other agency, office
and individual-level variables, the analysis of which is beyond the scope of this study. Most of
the survey items were measured on a six-point (coded 1-6) strength of agreement (strongly
disagree to strongly agree) or a five-point (coded 0–4) frequency of occurrence (never to almost
always) scale except for the items for distributive justice, which are discussed below.5
4
Employees at the salary grade level 27 and above in New York State agencies are considered to be senior managers/executives and were not
included in the data analysis.
5
A complete list of study items is provided in Table 4.
14
In organizational research, measures of distributive justice typically focus on employees’
perceptions of equity in the allocation of work-related rewards (Colquitt 2001). Distributive
justice in this study was measured with three items that specifically focused on perceptions of
equity in the allocation of work-related rewards among employees. These three items were
measured on a six-point (coded 0-5) level of fairness scale (not fair at all to very fair). The
reliability coefficient (i.e., Cronbach’s α) for these three items was 0.74.
Procedural justice in organizational research generally is assessed with either a direct or
an indirect measurement approach (Colquitt and Shaw 2005). Direct measures of procedural
justice explicitly ask participants about fairness of a particular decision-making process, and they
are predominantly used in experimental design (Colquitt and Shaw 2005). Indirect measures of
procedural justice are used more frequently in field studies.
Further, items of an indirect
measure do not explicitly focus on the fairness of a particular procedure; instead, such items
focus on one or more determinants of procedural justice, such as the Leventhal’s (1980)
procedural justice rules (Colquitt and Shaw 2005). This study relied on an indirect measurement
approach. Six items were used to assess employees’ perceptions of procedural fairness that
correspond with three of Leventhal’s (1980) six procedural justice rules: representation (i.e.,
voice opportunity), bias suppression, and ethicality. Cronbach’s α for these six items was 0.83.
Multiple items also were used to assess the three outcome measures. Organizational
identification was measured with three items that focused on the evaluative aspect of
organizational identification. These items were very similar to items previously used by Tyler
and Blader (2000) to measure pride in group membership. The reliability coefficient for these
three items was high (Cronbach’s α = 0.84). Further, job involvement was measured with three
items that focused on the degree to which employees’ are engaged in their jobs or find carrying
out their jobs in the present work environment as engaging (Paullay et al. 1994). Several recent
15
studies also have used similar items to measure employees’ job involvement in a public sector
setting (Hassan and Rohrbaugh forthcoming; Ward and Park 2009). Cronbach’s α for these three
items was 0.71. Further, turnover intention was measured with three items based on a measure
developed by Sager, Griffeth, and Hom (1998). Cronbach’s α for these three items was 0.75
RESULTS
Univariate and Bivariate Analyses Results
Table 3 reports the univariate and bivariate statistics for the five measures used in the
present study. The potential range of values for each scale varied depending on the number of
items or questions used to create each measure. Distributions for four of the five measures were
somewhat negatively skewed, with a greater number of respondents reporting a relatively high
degree of procedural and distributive justice, organizational identification, and job involvement.
Further, the distribution of the measurements of turnover intention was positively skewed with a
greater number of professional employees reporting a relatively low level intention to leave their
current organization. Although composite scores for all five measures were either positively or
negatively skewed, the differences between the average scores and the scale midpoints were not
very large. Further, the standard deviations for all of the measures were relatively high,
indicating adequate variability in the data sufficient for further analysis.
--------------------------------INSERT TABLE 3
----------------------------------
All ten correlations among the five measures were moderate and statistically significant
(p<0.05). The highest observed correlation was between job involvement and turnover intention
(r = -0.60) and the lowest was between distributive justice and job involvement (r = 0.37). The
median correlation between study measures was .50.
This indicates that, on average, the
variance typically shared between two measures was limited to one-quarter of the total variance,
16
and no measure shared more than 36 percent of the variance with any other measure.
Nevertheless, a considerable degree of interrelatedness between the study measures was expected
with four hypothesized direct relationships, as well as the corresponding indirect relationships.
Structural Equation Modeling Results
Following the two-step process recommended by Kline (1998), the research hypotheses
were tested with structural equation modeling.
Confirmatory factor analyses (CFA) were
conducted in the first step to assess the fit of the measurement model. The second step assessed
fit of structural model with hypothesized relationships among the latent constructs. This study
relied on one measure of absolute fit (i.e., the chi-square test), one measure of parsimony fit (i.e.,
RMSEA—the root mean square error of approximation), and two measures of relative fit (i.e.,
CFI—the comparative fit index—and NNFI/TLI—the non-normed fit index) to assess the fit of
the measurement and structural models. A reasonably fit is indicated by CFI and NNFI values of
.90 or above and RMSEA value of .08 or less (Hu and Bentler 1995; Schumacker and Lomax
2004).
The Measurement Model
Construct validities of the five measures were assessed with CFA. Table 4 summarizes
CFA results for the full measurement model. As shown in Table 4, all of the scale items were
found to have statistically significant factor loadings (p<0.05) for their respective latent
constructs (λs = 0.54 to 0.93 for distributive justice, λs = 0.54 to 0.78 for procedural justice, λs =
0.70 to 0.89 for organizational identification, λs = 0.59 to 0.81 for job involvement, and λs =
0.56 to 0.79 for turnover intention). Additionally, the composite reliabilities for all five factors
were above the minimum threshold value of 0.70 (Hair, Anderson, Tatham, and Black 1998).
17
Further, the variance extracted estimates for all five constructs were very close to or higher than
the recommended 50 percent value (Fornell and Larcker 1981).
-------------------------------INSERT TABLE 4
---------------------------------
The fit indices obtained from SEM results indicated the measurement model provided
good fit to the data. Three of the four fit indices indicated that the proposed measurement model
provided a good fit to the data. The CFI for the full measurement model was 0.97, and the
NNFI/TLI was 0.96. Both of these values were well above the minimum threshold that generally
is necessary for a good fit. In addition, the RMSEA was 0.04, well below the maximum
threshold value necessary for a satisfactory fit (i.e., 0.08). Only the maximum likelihood chisquare was inconsistent with a good model fit (χ2 = 287.26, df = 125, p<0.05). However, the
lack of fit found by the chi-square test was not of particular concern because this index is
sensitive to sample size, with larger samples inflating the chi-square and decreasing the
likelihood of achieving a good model fit (Kline 1998). Overall, these results provided empirical
support for the validities of the five latent constructs.6
The Structural Model
Similar to the measurement model, the overall fit of the proposed structural model was
assessed using the four fit indices discussed earlier. Three of the four fit indices indicated that
the proposed structural model provided good fit to the data (CFI = 0.97, NNFI/TLI = 0.96, and
RMSEA = 0.05).7 Only the maximum likelihood chi-square (χ2 = 320.68, df = 129, p<0.05) was
6
To assess discriminant validity of the procedural and distributive justice measures, an additional CFA was conducted in which distributive and
procedural justice items loaded on two separate factors. The chi-square statistic of this two-factor solution then was compared with that of a
solution in which distributive and procedural justice items loaded on a single factor. The difference between the chi-square statistics of these
alternative models was found to be statistically significant (Δχ2 = 189.76, df = 1, p<0.05). A comparison of other fit indices indicated that the twofactor organizational justice solution (CFI = 0.97, NNFI/TLI = 0.95 and RMSEA = 0.06) provided a better fit to the data than the one-factor
solution (CFI = 0.89, NNFI/TLI = 0.85 and RMSEA = 0.12).
7
Additional tests of the structural model were conducted by including a number of demographic variables. No significant differences in the
results were found for participants’ age, gender, race, job and organizational tenures.
18
inconsistent with a good model fit. However, the lack of fit found by the chi-square test was not
of particular concern because this index is sensitive to sample size (Kline 1998). Figure 2
presents summary results of the structural model as standardized regression coefficients.
As shown in Figure 2, the t statistics for path coefficients for all of the direct relationships
were statistically significant (p<0.05) and in the predicted direction. As anticipated, perception
of procedural fairness were found to have a strong effect on professional employees’
organizational identification (β = 0.60). Similarly, professional employees who reported that
organizational rewards were fairly distributed showed a greater sense of identification with their
agency (β = 0.16). When taken together, procedural and distributive perceptions explained half
of the variance in organizational identification.
In addition, the results indicated that
professional employees who strongly identified with their agency also felt highly involved in
their jobs (β = 0.56). They also were more inclined in continuing their work (β = -0.33) than
those who weakly identified with their agency. Additionally, professional employees who felt
highly involved in their work were less likely to leave their agency (β = -0.42). These findings
provided strong empirical support for hypotheses one through four and hypothesis seven.
-----------------------------------INSERT FIGURE 2
------------------------------------
Mediation Analysis
To assess whether organizational identification mediated the effects of procedural and
distributive justice on professional employees’ job involvement and turnover intention, an
additional structural model was run.8 This structural model incorporated both the direct and
indirect paths to test the mediation effects specified in hypotheses five and six. Specifically, four
8
Figure 2 summarizes the results of the final structural model (partial mediation model). Two different structural models were run and tested in
this study. The first was a full mediation model in which organizational identification was hypothesized to fully mediate the effects of procedural
and distributive justice on job involvement and turnover intention. The data provided a good fit to this full mediation model (CFI=0.97,
NNFI/TLI=0.96, RMSEA=0.05, χ2 = 320.68, df = 129, p<0.05). An alternative, partial mediation, model also was run, and the results indicated
that the partial mediation model provided a better fit to the data than the full mediation model (CFI=0.97, NNFI/TLI=0.96, RMSEA=0.05, χ2 =
287.27, df = 125, p<0.05).
19
additional direct paths (procedural justice  job involvement, distributive justice  job
involvement, procedural justice  turnover intention, and distributive justice  turnover
intention) were added to the full mediation model (shown as dotted arrows in Figure 2). To draw
a conclusion about mediation effects, this study relied on effect decomposition breakdowns for
each independent measure, a process in which the total effect of an independent measure on a
dependent measure is divided into its indirect and direct effects (Brown 1997). A significant
indirect effect in the structural model indicates that a significant amount of the independent
measure’s total effect on the dependent measure occurred through the mediating measure.
Sobel’s Z statistic (1982) for each indirect path coefficient was calculated to determine whether
the indirect effects were statistically significant. The significance (or non-significance) of the
direct paths in the additional structural model was used as a basis to determine whether there was
full versus partial mediation. Table 5 summarizes the results of these mediation analyses.
-----------------------------------INSERT TABLE 5
------------------------------------
The results indicated that organizational identification fully mediated the effect of
procedural justice on professional employees’ job involvement. As shown in Table 5, the
coefficient for the indirect path connecting procedural justice with job involvement through
organizational identification was significant (Sobel’s Z = 6.58, p<0.05), whereas the coefficient
for the direct path was not significant (see Figure 2). In addition, the effect of procedural justice
on professional employees’ turnover intention was partially mediated by their organizational
identification. The coefficient for the indirect path connecting procedural justice with turnover
intention through organizational identification was statistically significant (Sobel’s Z = 4.65,
p<0.05). Procedural justice also was found to have a direct influence on professional employees’
turnover intention (β = -0.16, p<0.05). These results provided support for hypothesis five.
20
Empirical support also was found for hypothesis six. The coefficient for the indirect path
from distributive justice to job involvement through organizational identification was statistically
significant (Sobel’s Z = 2.80, p<0.05), as was the coefficient for the direct path from distributive
justice to job involvement (β = 0.14, p<0.05). Hence organizational identification partially
mediated the effect of distributive justice on professional employees’ job involvement.
Organizational identification also was found to partially mediate the effect of distributive justice
on professional employees’ turnover intention. As indicated in Table 5, the coefficient for the
indirect path from distributive justice to turnover intention through organizational identification
was statistically significant (Sobel’s Z = 2.57, p<0.05). Distributive justice also was found to
have a direct influence on employees’ turnover intention (β = -0.10, p<0.05).
DISCUSSION
Implications for Research and Practice
The results of this study indicated that fairness perceptions play an important role in
government agencies in terms of increasing employees’ organizational identification and job
involvement and lowering their intention to leave their agency. This study also indicated that the
effects of justice perceptions on professional employees’ job involvement and turnover intention
were mediated by their identification with their agency. These findings are important because
they provide a better understanding of how fairness perceptions may facilitate positive and
prevent negative employee outcomes in government agencies.
These findings also have
extended previous research on organizational justice in government agencies (Choi forthcoming;
Hassan and Rohrbaugh forthcoming; Kurland and Egan 1999; Rubin 2009). Specifically, no
public management research to date has examined indirect effects of procedural and distributive
justice on government employees’ job involvement and turnover intention. Additionally, this is
21
the first public sector study to examine how employees in government agencies think and feel
about their organizational membership from the social identification perspective.
The results of this study also have implications for research and theory concerning
organizational fairness. This study primarily relied on the group engagement model (Tyler and
Blader 2000, 2003) to examine how fairness perceptions influence employee outcomes in a
government agency. The group engagement model is a relatively new theory, and its arguments
have not been thoroughly examined in different organizational contexts, especially in
government agencies.
This study provides further empirical evidence about this emerging
domain of research. As indicated by the results, fair treatment may provide a symbolic message
to employees about the extent to which their work efforts are valued by their organization, and
this, in turn, may increase their organizational identification, job involvement, and intention to
continue to work for their organization.
Procedural justice in this study was found to have greater impact than distributive justice
on professional employees’ identification with their agency.
This finding corroborates the
assertion of the group engagement model (Tyler and Bladder 2000, 2003) that fairness of
decision-making procedures is the key source of employees’ organizational identification.
Nevertheless, as indicated by this study, distributive justice also plays a significant role in the
development of employees’ identification with their organization, although procedural justice
has the stronger influence in increasing professional employees’ job involvement and reducing
their turnover intention. These findings are consistent with previous research that has indicated
that procedural justice is more strongly related to employees’ affective reactions toward their job
and organization, whereas distributive justice has a stronger effect on employees’ satisfaction
with outcomes such as pay and promotion (see, for example, Sweeney and McFarlin 1993;
Masterson et al. 2000).
22
The present study also offers practical insight about how to increase professional
employees’ job involvement and lessen their turnover intentions in government agencies. As
indicated by the results, fostering organizational identification would be an effective strategy to
increase professional employees’ job involvement and lower their intention to leave their agency.
This study also indicated ways to enhance public sector employees’ organizational identification.
Specifically, to foster employees’ organizational identification, public agencies should place a
considerable effort in institutionalizing fair decision-making processes. Managers in public
agencies can play an active role in establishing a fair work climate by making reward and
resource allocations decisions in a visibly impartial manner. Further, managers can increase
their subordinates’ perception of procedural fairness by providing them with opportunities to
voice their concerns in decisions that affect their work, ensuring consistency in decision-making
procedures, and making decisions based on accurate and timely information. Further, managers
also can increase their subordinates’ perception of fairness by treating them with dignity and
respect while implementing formal policies and procedures.
This study also found that distributive justice plays an important role in enhancing
organizational identification and job involvement and reducing turnover intention. Government
agencies, therefore, should pay greater attention to developing specific human resource policies
that ensure equitable distribution of rewards and resources among employees (e.g., a
performance-based reward scheme).
However, any such initiative would need to be
implemented with great care and guidance.
Distributing rewards and resources among
employees based on their efforts is likely to have a positive impact on their work motivation,
involvement and performance (Greenberg 1982; Latham and Pinder 2005). However, relying on
the equity principle alone may not be adequate for increasing an agency’s performance, because
23
it requires one to differentiate between organizational members, thereby undermining harmony
and interpersonal cooperation in work groups (Leventhal 1976).
Limitations and Directions for Future Research
The contribution of this research should be acknowledged in light of its limitation. The
study relied on a cross-sectional design and, thus, conclusions regarding causality should be
made with great caution. Further, data for this study were collected from employees in one large
state agency in New York.
Although this organization was charged with diverse public
responsibilities and was widely dispersed geographically, the results reported in this study may
have somewhat limited generalizability. Hence, additional empirical tests of the findings with
samples taken from a broader range of public organizations and geographic areas would provide
more validity for the hypothesized research model.
This study shares the potential problem of common method bias (Campbell and Fiske
1959) with all prior studies that have focused on organizational justice using self-report data
from a single source such as an interview protocol or a questionnaire. In brief, the measurement
of multiple variables through a common method may overestimate the actual magnitude of their
interrelations due to the contribution of a pattern of response covariance evoked solely by use of
one assessment form. Self-reports in organizational research, for example, may induce patterns
of response set such as social desirability, acquiescence, or deviation that can increase observed
correlations between measures.
Statistical remedies for common method bias remain problematic (Podsakoff,
MacKenzie, Lee, and Podsakoff 2003). A variety of non-statistical procedures were introduced
in the design of the present study to reduce potential common method bias. Anonymity of
response was assured repeatedly in all correspondence and evidenced in every aspect of data
24
collection. Questionnaires were completed at different times and in multiple office locations.
Further, the particular items used in the present study were interspersed widely over seven pages
and nine distinct sections within the larger 130-item questionnaire. These items also were almost
evenly split in the directionality of their wording (i.e., both positive and negative statements).
Varied response formats were presented.
Although no items for ―marker‖ variables were
inserted strategically in the questionnaire to allow for the statistical control of common method
bias (Podsakoff et al. 2003), the results of the present study produced some evidence that the
design procedures (discussed above) may have been at least somewhat effective. For example,
bivariate analysis indicated that variance shared on average between two measures was limited to
one-quarter of the total variance, despite an expectation in research design of a high degree of
relatedness between the measures. Further, findings of this study were strengthened somewhat
by the use of structural equation modeling, as it allows testing of the hypothesized model in the
absence of measurement errors and other extraneous influences through simultaneous estimation
of both the measurement and theoretical models (Hoyle 1995).
These steps successfully
attenuated, if not eliminated, common method bias in the results. Nevertheless, future research
should rely on longitudinal designs and multiple sources of data to test the hypothesized
relationships
This study primarily examined the evaluative aspect of organizational identification as a
mediator of the relationship between justice perceptions and government employees’ work
attitudes. However, the cognitive aspect of organizational identification also plays an important
role in shaping employees’ cooperative work attitudes and behaviors (Riketta 2005; Ashforth et
al. 2008). Hence, a logical extension of this study would be to focus on both the cognitive and
evaluative components of organizational identification while assessing the effects of justice
perceptions on government employees’ job involvement and turnover intention. Additionally, to
25
fully assess the theoretical impact of this research, future studies should consider examining
alternative variables as mediators in the relation between fairness perceptions and government
employees’ cooperative attitudes and behaviors. Recently, Choi (forthcoming) and Rubin (2009)
have found that trust in management is an important outcome of federal employees’ perceptions
of organizational justice. Emerging research also indicates that trust in management plays an
important role in government employees’ satisfaction with their job and organization and their
perception of work unit performance (Cho and Ringquist 2011).
It will be worthwhile to
examine whether organizational identification and trust in management differentially mediate the
effects of justice perceptions on government employees’ in-role (e.g., job performance) and
extra-role behaviors (e.g., voluntary learning behavior and interpersonal helping behavior).
26
Figure 1
Research Framework
Procedural
Justice
H1
H5-H6
Organizational
Identification
H3
Job
Involvement
H7
H2
Distributive
Justice
H4
Turnover
Intention
27
Figure 2
Results of the Final Structural Model
Procedural
Justice
-0.16*
0.60*
0.02
R2 = 0.43
R2 = 0.51
0.56*
Organizational
Identification
Job
Involvement
-0.42*
0.14*
0.16
*
-.33*
R2 = 0.74
Distributive
Justice
-0.10*
Turnover
Intention
Model Fit Statistics: CFI = .97, NNFI/TLI = .96, RMSEA = .04, χ2(df = 125) = 287.26, p<.05
*Standardized path coefficients significant at p<.05
28
Table 1
Sample Demographics and Organizational Characteristics
Characteristics
Percent
Ethnicity
Asian
4.7%
African American
Hispanic
6.5%
1.6%
Native American
Caucasian/White
0.5%
86.5%
Other
Gender
Female
Male
Nature of Position
Technical
Managerial
0.2%
45.4%
54.6%
85.1%
14.9%
29
Table 2
Age and Tenure of the Sample
Minimum
Maximum
Mean
Standard
Deviation
Age
23
70
44.2
10.0
Years in Current Position
1
34
4.8
9.7
Years in Agency
1
37
10.7
8.6
Years in State Government
1
41
9.3
5.1
Measures
30
Table 3
Means, Standard Deviations, and Correlation Coefficients9
9
Measures
Means
Standard
Deviations
1
1. Procedural Justice
24.68
5.89
(0.83)
2. Distributive Justice
11.77
3.17
0.59*
(0.74)
3. Organizational Identification
15.28
2.82
0.59*
0.47*
(0.84)
4. Job Involvement
13.76
2.93
0.39*
0.37*
0.47*
(0.71)
5. Turnover Intention
7.37
3.90
-0.53*
-0.47*
-0.60*
-0.57*
2
3
4
5
(0.75)
Cronbach’s α for the five measures are shown in parentheses
31
Table 4
Properties of the Full Measurement Model
Constructs and Indicators
Standardized
Factor Loadings
Indicator
Reliability
Procedural Justice
Upper level managers are courteous to employees
Employees are treated fairly
Employees are encouraged to raise issues and concerns at work
Important decisions are made top down without any consultation (R)
Personnel decisions are influenced by factors like ethnicity, age, or gender of employees (R)
Assignments are given on the basis of favoritism without regard to merit (R)
*
0.70
0.78*
0.65*
0.60*
0.54*
0.74*
0.67
*
0.45
How fair and equitable do you consider career opportunities to be?
0.93
*
0.86
How fair and equitable do you consider training opportunities to be?
0.54*
0.30
I speak positively about this organization to outsiders
0.79*
0.63
I am embarrassed to say that I work in this organization (R)
0.70*
0.79
0.89
*
0.78
It is hard for me to get very involved in my current job (R)
0.61
*
0.37
At the end of the day, I feel good about the work I do in this organization
0.59*
0.35
0.81
*
0.65
0.56
*
0.31
0.79
*
0.62
0.79*
0.62
Organizational Identification
I am proud to tell others that I am part of this organization
Job Involvement
Time seems to drag while I am on the job (R)
Turnover Intention
I plan to be working here three years from now (R)
I would quit this organization tomorrow if it were possible
I think about getting a different job outside this organization
Model Fit Statistics: χ2 (125) = 287.26, p<.05, CFI= 0.97, NNFI/TLI = 0.96 and RMSEA = 0.04
* p<0.05
0.77
0.55
0.84
0.64
0.71
0.46
0.76
0.52
0.49
0.61
0.42
0.36
0.30
0.55
Distributive Fairness
How fair and equitable do you consider promotion examinations to be?
0.83
Variance
Extracted
Estimates
0.45
Composite
Reliability
32
Table 5
Coefficients for the Standardized Direct, Indirect and Total Effects
Paths
Direct
Effects
Indirect
Effects
Total
Effects
Procedural Justice  Organizational Identification
0.60*
0.60
Distributive Justice  Organizational Identification
0.16*
0.16
Procedural Justice  Job Involvement
0.02
0.34
Procedural Justice  Turnover Intention
-0.16*
-0.50
Distributive Justice  Job Involvement
0.14*
0.22
Distributive Justice  Turnover Intention
-0.10*
-0.24
Organizational Identification  Turnover Intention
-0.33*
-0.57
Procedural Justice  organizational identification  Job Involvement
0.34* (6.58)
Procedural Justice  organizational identification Turnover Intention
-0.20* (4.65)
Distributive Justice  organizational identification Job Involvement
0.09* (2.80)
Distributive Justice  organizational identification Turnover Intention
-0.05* (2.57)
Distributive Justice  Job Involvement  Turnover Intention
-0.06* (2.74)
Organizational Identification  Job Involvement  Turnover Intention
-0.24* (5.90)
Sobel’s Z statistics are shown in parenthesis next to the indirect effects
*p<0.05
33
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