Managers' Roles in Performance-Based Reward Enhancing Employees’ Feelings of Procedural Justice

Authors

  • Azman Ismail Universiti Kebangsaan Malaysia
  • Mohd Ridwan Abd Razak Universiti Kebangsaan Malaysia

DOI:

https://doi.org/10.24002/kinerja.v21i2.1279

Abstract

This study assesses the correlation between managers’ roles in performance based reward and procedural justice at disaster agencies in Malaysia. The outcomes of SmartPLS (PLS-SEM) path model analysis demonstrated that the capability of management to correctly apply communication, involvement and performance assessment in performance-based reward could lead to higher employees' feelings of procedural justice in the organizational sample. Further, this study offers discussion, implications, and conclusion.
Keywords: Managers’ roles, performance based reward, procedural justice, SmartPLS

References

Akbaş, M., Ariely, D. and Yuksel, S., 2016. When is inequality fair? an experiment on the effect of procedural justice and agency. [online] Available at: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2474368 [Accessed 6 February 2017].

Allen, N.J., and Meyer, J.P., 1990. The measurement and antecedents of affective , continuance and normative commitment to the organization. J. Occup. Psychol., 63, pp.1–18.

Anuar, A., Ismail, A., and Abdin, F., 2014. Administrator’s role in performance pay system as a determinant of job satisfaction. Sains Humanika, 2(2), pp.11–17.

Azman, I., Nur Asilah, K. M., and Mohamad Rahmad, R., 2016. Relationship between performance appraisal communication procedural justice and job satisfaction. Malaysian Journal of Society and Space, 12(2), pp.15-26.

Baporikar, N., 2016. Strategies for Enhancing the Competitiveness of MNEs. Multinational Enterprise Management Strategies in Developing Countries. Advances in Logistics, Operations and Management Science Book Series, pp.50-71.

Berber, N., Morley, M.J., Slavić, A. and Poór, J., 2017. Management compensation systems in Central and Eastern Europe: a comparative analysis. The International Journal of Human Resource Management, 28(12), pp.1-29.

Brehm, M., Imberman, S.A. and Lovenheim, M.F., 2017. Achievement effects of individual performance incentives in a teacher merit pay tournament. Labour Economics, 44, pp.133-150.

Brown, M., Hyatt, D., and Benson, J. 2010. Consequences of the performance appraisal experience. Pers. Rev., 39(3), pp.375–396.

De Spiegelaere, S., Van Gyes, G. and Van Hootegem, G., 2016. Innovative work behaviour and performance-related pay: rewarding the individual or the collective?. The International Journal of Human Resource Management, 19(2), pp.1-20.

Deepa, E., Palaniswamy, R., and Kuppusamy, S. 2014. Effect of performance appraisal system in organizational commitment, job satisfaction and productivity. J. Contemp. Manag. Res., 8(1), pp.72–82.

Folger, R., and Konovsky, M.A. 1989. Effects of procedural and distributive justice on reactions to pay raise decisions. Academy of Management Journal, 32(1), pp.115-130

Fornell, C., and Larcker, D.F. 1981. Evaluating structural equation models with unobservable variables and measurement error. J. Mark. Res., 18(1), pp.39–50.

Graen, G. 1976. Role making processes within complex organizations. In M. D. Dunnette (Ed.), Handbook in industrial and organizational psychology (pp. 1201-1245). Chicago: Rand McNally.

Graen, G., and Uhl-Bien, M., 1995. Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain. Leadership Quarterly, 6(2), pp.219-247.

Hair, J.F. Jr., Black, W.C., Babin, B.J., and Anderson, R.E., 2014. Multivariate data analysis, 7th Ed.. Prentice Hall, Upper Saddle River.

Hair, J.F. Jr., Hult, G.T.M., Ringle, C.M., and Sarstedt, M., 2017. A primer on partial least squares structural equation modeling (PLS-SEM), 2nd Ed. United States of America: SAGE publications Inc.

Hair, J.F. Jr., Ringle, C.M., and Sarstedt, M., 2011. PLS-SEM: Indeed a silver bullet. J. Mark. Theory Pract., 19(2), pp.139–152.

Henderson, R.I., 2006. Compensation management in a knowledge-based world. New Jersey: Prentice Hall.

Henseler, J., and Chin, W., 2010. A comparison of approaches for the analysis of interaction effects between latent variables using partial least squares path modeling. Struct. Equ. Model. A Multidiscip. J., 17(1), pp.82–109.

Henseler, J., Ringle, C.M., and Sinkovics, R.R. 2009. The use of partial least squares path modeling in international marketing. Adv. Int. Mark., 20, pp.277–319.

Ismail, A. and Razak, A. M. R., 2016. Performance-based reward administration as an antecedent of job satisfaction: A case study of Malaysia’s fire and rescue agencies. Malaysian Journal of Society and Space, 12(7), pp. 107-118).

Ismail, A., Mashkuri, A.H., Sulaiman, A.Z., and Hock, W.K. 2014. Interactional justice as a mediator of the relationship between performance based reward and job satisfaction. Intangible Capital, 7(2), 213-235.

Ismail, A., Sulaiman, A.Z., Mohamed, H.A.B., and Sani, R.M. 2011. Procedural justice as a moderator in the relationship between performance appraisal communication and job satisfaction. Sci. e-journal Interdiscip. Manag. Sci. Venez., 19(7), pp.162–186.

Jabatan Perkhidmatan Awam. 2002. Pelaksanaan Sistem Saraan Malaysia Bagi Anggota Perkhidmatan Awam Persekutuan, White Paper: Malaysia.

Jabatan Perkhidmatan Awam. 2016. Penambahbaikan Jadual Gaji Minimum – Maksimum Gred 1 Hingga Gred 54 Di Bawah Sistem Saraan Malaysia. White Paper: Malaysia.

Lau, (Elaine) W. K. 2014. Employee’s participation: A critical success factor for justice perception under different leadership styles. Journal of Management Policies and Practices, 2(4), pp.53-76.

Lira, M., Da Silva, V.P.G., and Viseu, C. 2016. Performance Appraisal as a Motivational Tool in the Portuguese Public Administration. Portuguese Journal of Finance, Management and Accounting, 2(3), pp. 92-118.

Marthinsen, J.E., 2017. International Macroeconomics for Business and Political Leaders. London, Routledge.

Martin, T.N., Ottemann, R. and Hall, M., 2016. Generational Workforce Demographic Trends and Total Organizational Rewards Which Might Attract and Retain Different Generational Employees. Journal of Behavioral and Applied Management, 16(2), pp.91-115.

Martocchio, J.J. 2015. Strategic compensation: A human resource management approach, 8th ed. Boston, US: Pearson Education Limited.

McShane, S., Olekalns, M., Newman, A., and Travaglione, T. 2015. Organisational behaviour, 5e; emerging knowledge. Global insights. McGraw-Hill Education Australia.

Meyer, J.P., and Allen, N.J. 1997. Commitment in the workplace: Theory, research and application. Thousand Oaks – California: Sage Publication, Inc.

Moorman, R.H., Blakely, G.L., and Niehoff, B.P. 1998. Does perceived organizational support mediate the relationship between procedural justice and organizational citizenship behavior? Academy of Management Journal, 41(3), pp.351-357

Najwa A.A.R., Rahim, A., Sapian, R.Z.Z., Anuar, A., and Ismail, A. 2016. Relationship between performance based reward and organizational commitment in banking industry. Acta Universitatis Danubius. Economica, 12(3), 18–29.

Newman, J.M., Gerhart, B., and Milkovich, G.T. 2016. Compensation, 12th ed. United States: McGraw Hill Education.

Pignata, S., Winefield, A.H., Provis, C. and Boyd, C.M., 2016. A Longitudinal Study of the Predictors of Perceived Procedural Justice in Australian University Staff. Frontiers in Psychology, 7, 1271.

Rizal, M., Idrus, M.S., Djumahir, and Mintarti, R. 2014. Effect of compensation on motivation, organizational commitment and employee performance (studies at local revenue management in Kendari city ). Int. J. Bus. Manag. Invent., 3(2), pp.64–79.

Salim, S.S., Roszaide, S., Ismail, A., and Yussof, I. 2015. Peranan sistem ganjaran berdasarkan prestasi dalam meningkatkan komitmen organisasi: Kajian kes penjawat awam di Putrajaya dan Selangor, Malaysia. Malaysian J. Soc. Sp., 11(10), pp.51–62.

Sekaran, U., and Bougie, R. 2015. Research methods for business: A skill-building approach, 6th Ed. US: Wiley.

Singh, P.S.P., and Rana, S. 2015. The impact of performance appraisal on effectiveness of communication. Int. J. Sci. Res., 4(4), 2964–2967.

Singh, S.K.G. 2009. A study on employee participation in decision making. UNITAR E-Journal, 5(1), pp.20–38.

Tyler, T.R., and Blader, S.L. 2003. The group engagement model: Procedural justice, social identity, and cooperative behavior. Personal. Soc. Psychol. Rev., 7(4), pp.349-361.

Wainaina, L., Iravo, M., and Waititu, A. 2014. Effect of participation in decision making on the organizational commitment amongst academic staff in the private and public universities in Kenya. Int. J. Adv. Res. Manag. Soc. Sci., 3(12), pp.131–142.

Walumbwa, F., Wu, C., and Orwa, B. 2008. Contingent reward transactional leadership, work attitudes, and organizational citizenship behavior: The role of procedural justice climate perceptions and strength. Leadersh. Quarterly, 19, pp.251-265.

Downloads

Published

2017-09-16

Issue

Section

Articles