Interactional justice as a mediator of the relationship between pay for performance and job satisfaction

Azman Ismail, Azizul Hakim Mashkuri, Ahmad Zaidi Sulaiman, Wong Kee Hock

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Purpose: This study was conducted to examine the effect of pay for performance and interactional justice on job satisfaction. Design/methodology/approach: A survey method was used to collect 107 usable questionnaires from employees who work in the US subsidiary manufacturing firm operating in a silicon valley in East Malaysia, Malaysia. Findings: The outcomes showed two important findings: first, relationship between interactional justice and adequacy of pay significantly correlated with job satisfaction. Second, relationship between interactional justice and participation in pay systems significantly correlated with job satisfaction. Statistically, this result confirms that interactional justice does act as a mediating variable in the pay for performance models of the studied organization. Originality/value: Most previous research tested a direct effect of pay for performance on job satisfaction. Unlike such research approach, this study discovers that interactional justice has strengthened the effect of pay for performance on job satisfaction in a compensation system framework.

Original languageEnglish
Pages (from-to)213-235
Number of pages23
JournalIntangible Capital
Volume7
Issue number2
DOIs
Publication statusPublished - 2011
Externally publishedYes

Fingerprint

Job satisfaction
job satisfaction
justice
performance
Malaysia
research approach
manufacturing
employee
Pay-for-performance
Mediator
Interactional justice
Personnel
firm
organization
Silicon
participation
questionnaire
methodology
Values

Keywords

  • Interactional justice
  • Job satisfaction
  • Pay for performance

ASJC Scopus subject areas

  • Accounting
  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management
  • Organizational Behavior and Human Resource Management
  • Education

Cite this

Interactional justice as a mediator of the relationship between pay for performance and job satisfaction. / Ismail, Azman; Mashkuri, Azizul Hakim; Sulaiman, Ahmad Zaidi; Hock, Wong Kee.

In: Intangible Capital, Vol. 7, No. 2, 2011, p. 213-235.

Research output: Contribution to journalArticle

Ismail, Azman ; Mashkuri, Azizul Hakim ; Sulaiman, Ahmad Zaidi ; Hock, Wong Kee. / Interactional justice as a mediator of the relationship between pay for performance and job satisfaction. In: Intangible Capital. 2011 ; Vol. 7, No. 2. pp. 213-235.
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