The Relationship SHRM Roles with Compensation Justice

The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 201 Organizations must be able to learn quickly and constantly, continuously innovate and take new strategic move faster and more convenient Ulrich 1998. A study ofLaursen and Foss 2013 explained that the causal mechanisms underlying the relationship between HRM and innovation remains exclusive, so further research is needed. Based on empirical studiesNasiripour et al. 2013 variables of knowledge sharing has a positive effect on innovation. This indicates that the variables of knowledge sharing can handle business matters. This study begins to explore the factors that affect innovation. This is in line with research of Naghavi et al. 2014 which proves that there is a significant positive relationship of knowledge management processes for organizational innovation. Something that can not be avoided by the organization is facing constant change, means the organization must make a discomfort with the status quo, the ability to detect trend emerging competition more quickly, the ability to make quick decisions, and agility to find new ways of doing business. It is unlikely to be realized in the absence of harmonization of all parties that have a strategic role. Therefore, it is expected that there is a positive relationship between unified knowledge sharing with organizational innovation. Hypothesis 2. The improved implementation of the unified knowledge sharing will improve the implementation of organizational innovation.

2.4. The Relationship SHRM Roles with

Organizational Innovation People are not the product, they are the main asset of an innovative organization Gupta and Singhal 1993. HR is involved in the whole process of innovation, because 1 it is considered that the innovative capacity of a company to be in intelligence, imagination and creativity of employees Mumford 2000, 2 the implications and their support is needed for the development and implementation of innovation Vrakking 1990. Several studies Jiang et al. 2012; Jime´nez-Jime´nez and Sanz-Valle 2008; Tan and Nasurdin 2011 explained that there is a positive relationship between HR and innovation. Research conducted bySanders et al. 2010 revealed that satisfaction on HR practices, especially satisfaction with influence and work content, positively related to innovative behavior, but the satisfaction of the primary benefits is negatively related to innovative behavior. With the existence of the gap in this paper raises the variable unified knowledge sharing, to mediate between the strategic role of HR relationship with organizational innovation. With reference to previous studies, it is expected that the relationship between the strategic role of HR in organizational innovation is positive. Hypothesis 3. The more intense the strategic role of HR, the better implementation of organizational innovation.

2.5. Perceived Organizational Support HR management should be responsible for the

orientation and training of line management on the importance of high morale and how to achieve it. In addition, the new HR employees should pay attention to the voice in the discussion of management; offers employees the opportunity for personal and professional growth; and providing resources that help employees meet their demands. Thus it would be more constructive communication openness impact on perceived organizational support is better. Individuals are more likely to form a belief as to the extent to which the organization values their contributions and cares about their well-being Eisenberger et al. 1996.Some individuals may base their perceived organizational support POS on factors such as the desire of the members of the organization to provide special assistance or special equipment to complete an activity. Other people may develop a strong sense based on the willingness of the members of the organization to provide additional opportunities for training that appeals to them. In addition, employees are often sensitive to environmental constraints and related organizations that may limit their ability to provide the desired benefits. Perceived organizational support associated with the belief that it will fulfill its obligations by giving awards to employees Settoon et al. 1996. There are two aspects to determine the condition of perceived organizational support employee. Both of these aspects are: appreciation of the contribution of the employee organization and the organizations attention to the welfare of employees. The need for innovation in organizations has resulted in a new focus on the role of a leader in shaping the nature and success of the creative effort Mumford and Licuanan 2004.While the creative ideas of individual employee level, does not always lead to the success of the creative idea at the organizational level. But at least it provides a starting point for organizational innovation Zhou and George 2001. Therefore, for individual employees perceived organizational support will encourage the implementation of a unified knowledge sharing. And it also shows that the perceived organizational support will be positively related to organizational innovation. Hypothesis 4. The improved perceived organiza tional support will further encourage a unified knowledge sharing. Hypothesis 5. The improved perceived organiza tional support will further encourage the implementation of organizational innovation. The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 202

3. CONCEPTUALIZATION OF THE MODEL

The concept of unified knowledge sharing is to share knowledge in an integrated manner by the leadership of the organization, in order to implement organizational innovation in each unit of work in order to synergy the integrity of the building innovation compiled by the organization. Therefore innovation in each unit needs continuity with organizational innovation. This requires support from both organizational factors and individual factors. Figure 1. Research Model Organizational factors in this case is the strategic role of human resources in organizations. Human resources strategic role is the leader in every unit. While individual factors are how individuals who have a strategic role, have a positive attitude towards the organization by having pride in accomplishments that have been achieved, understand that the organization cares about the welfare of employees, the contributions of employees, consider the goals and values of employees, giving attention to employees and willing to help if there are employees who require special assistance Eisenberger et al. 2001. In this study, it is categorized as a POS, which is an experience-based attribution concerning the benevolent or malevolent intent of the organizations policies, norms, procedures, and actions as they affect employees. Therefore, the proposed model is expected to lead to the realization of organizational innovation which involves both organizational factors and individual factors. On the whole model can be presented as in Figure 1. In this figure, it appears that the unified knowledge sharing is a variable that can mediate the relationship between variable resource strategic role for organizational innovation and POS relations to organizational innovation. The model of this research can be applied to a wide range of manufacturing and services industries. The respondents of this study is the line manager who has the authority in decision-making. But in the near future, the research will be conducted at universities and colleges respondents leaders ranging from laboratory coordinator, head of the study program, dean, head of the bureau and some leaders who have a strategic role in the achievement of higher education innovation. The leaders are strategic human resource which has the authority to make decisions. The leaders are playing a strategic role that leads to strategic support for the achievement of organizational goals, in this case is the innovation organization.

4. MEASUREMENT VARIABLE

Measurement of the strategic role of human resource variables using the indicators established by Ulrich 1998, which consists of a role as a Strategic Partner, b Administrative Expert, c Employee Champion, and d Change Agent. The indicators used to measure the unified knowledge sharing, there are four items, the first item: a willingness to cooperate,that is the item proposed in this study, and three subsequent items adopted fromMathuramaytha 2012. The following indicators of unified knowledge sharing: willingness to cooperation, willingness to share, capability to learn, capability to transfer knowledge. Organizational innovation in this study were divided into three main dimensions, namely: product innovation, process innovation and administrative innovation based on the types that have been discussed in previous literature Jime´nez-Jime´nez and Sanz-Valle 2008. POS was measured with items adopted from Eisenberger et al. 2001, consists of: a The organization proud of my accomplishments, b The organization really cares about my well-being, c Organization appreciate my contribution to the welfare, d Organization is considering the goals and values of me, e The organization showed little concern to me R, f The organization is willing to help me if I need special assistance.

5. CONCLUSION

The final section of this paper confirms that the unified knowledge sharing is a variable that can encourage organizations to achieve organizational innovation. This is in line with several studies that have been conducted Lin 2007; Majchrzak et al. 2004; Nonaka et al. 2000. In order to realize an organizational innovation required organizational factors and individual factors. Without the support of these two variables, it is difficult to capture, organize, reuse, and transfer of knowledge based on existing experience in every interaction of individuals in the organization. Study ofMajchrzak et al. 2004also prove how the reuse of knowledge in the event of a change of innovation. Individual Factors Organizational Factors The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 203 Managerial implication is that the need for harmonization and coherence in knowledge sharing, in order to realize synergies of innovation happening in the various levels of the organization. Both at the level of the bottom to the top level of the organization. In addition, if a problem occurs in a work unit, by the unified knowledge sharing, it can be quickly resolved. Future research can refer this article to build the realization of organizational innovation, ie taking into account both organizational factors and individual factors. This is important because the organization consists of various working units and individuals that potentially contribute to organizational change. Although there are several possible variables that can be developed for future research. REFERENCES Alvesson, M., and D. Karreman. 2001. 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Harvard Business Review January-February:124-134. Vrakking, W. J. 1990. The innovative organization. Long Range Planning 23 2:94-102. Zhou, J., and J. M. George. 2001. When Job Dissatisfaction Leads to Creativity: Encouraging the Expression of Voice. Academy of Management Journal 44 4:682-696. The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 205 Organizational Commitment Among Professions Retno Setyowati 1 1 Doctoral Students of Diponegoro University - HRM, Indonesia retnosetyofk.undip.ac.id ABSTRACT Organizational Commitment as one of Human Resource Management theory is an intriguing subject to discuss. It is one that organization should aware to acknowledge employee’s attachment. Literaturs of organizationa commitment showed different result e.g., organization, occupation, union on its essence, the antecedents and consequences , and its development. Organizational Commitment’s impact on employee is arguable. This study presents a sum of organizational commitment among different profession. The result of the implication on Human Resource practitioner are discussed. Keywords : Organizational Commitment, employee’s attachment, profession Organizational commitment is one of the most commonly examined attitudes in the organizational sciences literature and has particularly interested researchers since Meyer and Allen proposed a three- dimension model of the construct. The matter on commitment is no longer about being employee of an organization, but more about the emotional energies toward the profession occupation to which they belong Meyer and Allen 1998 Today’s business means dealing with which way to pleased customers in various field that put human being’s roles and aspects within its programs. Human being is a beautiful compound of emotion and intelligence. This explain the background of every human ca pital’s mindset thus makes it important to promote indepth researches on the consequences of commitment based on employee’s different mindset. Human capital is a source of inovation and strategies source of an organization. Human capital leads the organiz ation to invent and recognize it’s basic value Ghorbanhosseini 2013. Organizational commitment is beyond loyalty. It implies the employee’s intention to stay and continue to work in organization. Employee might stand for organization even over his her material awareness as well as his her social psycological benefit. Organizational commitment arised when organization goals and values were identified. High committed employee will voluntary involved within hisher daily work without questioning the effect reward. They will expend their material and physical matter Rusu 2013; Balay and Ipek 2010. This is seem to be too good to be true but yet it is possible to achieve. It is no doubt that leading employees to attached to their organization is a big work. Persons within organization will socially interact within their workinghood and curved their attitude and behavior Dineen, et al, 2007. At close range, the organization’s future might depend on a good set of human capital. Organization in recent days are willing to spread even a higher remuneration mixed with distinctive career growth to keep the human capital inside Permarupan 2013. Organizations are becoming more dependent on a committed employee in order to get its competitive advantage. It is arguably more important to understand the nature, development and implication of employee commitment Meyer and Parfyonova 2010. The purpose of this article is to describe organizational commitment situation among various professions. Workforce in different professions are potential to have different mindset about issues, as in this research the issue will be organizational commitment. Commitment is a force that binds an individual to a course of action of relevance to a target which can be accompanied by different mindset that play a role in shaping behavior Meyer and Herscovitch 2001. Previously, Meyer and Allen had specifically explain the organizational commitment’s dimension. Supported by other researches, the organizational commitment seem to be more colorful. It always be associated with high scoupe of positive effects Shagholi 2011. Nevertheles, on certain aspects of it dimensionality, negative effects also appear. For example, the affective commitment shows strong contribution for organizational readiness for change. It means that the employee’s connection to organization may reflects different degree to the whole components. The more The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 206 employees feel attached to their organization, the more they will committed to organization and the more they are willing to embrace the organizational change Nordin 2011. And yet in detail , continuance commitment effects negatively on job satisfaction and performance Namasivayam and Zhao 2007. There were change of nature of commitment from organizational to professional. It was the impact of faith in and acceptance of goals and values of the profession; willingness to incur the effort in the implementation of the profession and the desire to remain in the profession. People feel that they will live better under a sense of stability. Decreasing and loosing the bind of the relationship of employee and organization is in the great extant caused by market condition and organizational issue. When one is touched by positive stimuli and conditions that allow him her to satisfy hisher needs, the development of comitment occurs. In this case, the organization need to maintain conducive condition of work in order to preserve the motivation to work Bienkowska 2012. Many aspects may effect the employee’s attachment to organization, such as organizational culture, emotional intelligence, office design, job experience, tenure, age, gender etc. To some extant of researches review, this point out to a conclusion that organizational commitment may effects differently in different type of professions. It is interesting to analyse the organizational commitment among professions. Optimizing the multi – sector professional relies on the collaboration of program managers , human capital, acquisition, and business and finance professional Kangas 2009. When professionals work in bureaucratic organization, they experiece conflicting goals and feel compelled to choose one loyalty over another. Under such circumstances , they were expected to be more committed to their profession than to the employing organization.This article presenting the impact of organizational commitment among professions by any aspects it may costs. The extant review of some researches, this article presenting organizational commitment among multi-professions. Multi – sector professionals are working under different organizational culture and organizational structure. This had lead researchers to harvest vary interesting result of their research. In accordance to organizational culture, teachers perceived support , power , role and achievement culture respectively. Balay Ipek 2009 found that primary schools do not have a specific or a bold organizational culture, they share overall tendencies to a certain extend. Above of all oeganizational culture, teachers of primary schools perceive support culture more than achievement culture. In fact achievement culture were found at the lowest level. It means that teachers show a moderate organizational commitment to their school. Class teachers experience more achievement and support culture orientation and feel organizational commitment at identification and internalization level. Married teachers were found more committed to school than the single teachers. In the aspects of age and tenure, senior teachers in high school delivered more organizational commitment. Only that the longer the senior teachers stay, the less they have career change. There is a concern of losing job in the middle age and the pressure form work environment that affect organizational commitment. Within this they give high loyalty and feel of belonging which generate them strongly to devoted them selves and intention to stay. T he education and dedication is teacher’s consciousness and natural obligation which were irrelevant to school charactheristics. The organizational sense of identity and intention to stay were showed most by senior teachers. Director posessed higher organizational commitment then the team leader and general teachers Wang and Hwang 2007. Staff professionals seem to be working under conditions in which they have captured control over the objectives of their work and participate in policy making and thus directly helping their employing organization. Loyalty to the employing organization appears to dependent on professional’s oppotunities for career advancement. Work motivation is the most important determinant of professional commitment for staff lawyers. Lawyers working in nonprofessional organizational are less committed to profession. Professional and non professional organization are different in making decision on to their professional career especially in career promotion. This is what differ the organizatonal commitment level among lawyers Wallace 1995. Organizational commitment among finance professionals were unrelated to performance and result disatisfying outcome for the involve stakeholders in professionals service delivery. They work under a competitive environment that focus more on individual issue. Finance professionals serves customer individually and provide intense and professional relationship to them thus tie them in to a deeper bond with customer. This condition enable them to spend more time with customer and make them able to understand the customer in person. The employed finance professional then must face commitment issue that questioned them either their employees committed to them or to customer. Furtmueller et al 2011, suggested the organization to invest more to permanent worker and long – term employment relationship to permanent worker. Organization also need to create bonds with professionals that might minimize The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 207 commitment conflicts and provide sufficient number of professional’s incentives thus strive to develop it in order to keep the finance professional. The higher those professionals were professionally awarded the more they will concidered to leave the organization Furtmueller 2011. Other finance professional showed fruity result on organizational commitment. Gender become the issue to discuss in Mallon 2003. Reed’s et al study in 1994 on finance accountant. The study found that female accountant were no less committed to organization than were males. Female accountant with external orientation were found to be less comfort to their position and intent to find another opportunities. One’s tenure and job experience positively associated to organizational commitment. Short tenure was positively associated with job satisfaction for female and positively associated with organizational commitment with male. A lengthy tenure was found positively associated woth organization commitment for female. The longer an accountant work , they will endure their contract with organization. Female with external orientation need to actualized them selves thus a higher achievement is a must. Moreover, the role of female on organizational commitment resulted differently on army. Soldiers perceive that the army is supportive of their family has significant direct and indirect impacts on the level of commitment the soldier feels toward the army. Organizational commitment among soldiers is unconditionally. However, the role of the soldier’s wife is inevitable factor due to soldier’s commitment. Army – family conflict affected the organizational commitment of soldiers mediated by wife’s commitment. Soldier’s orgainzational commitment influence by the army’s family support policies. The army’s policy will also lead to a lower conflict between the military and the family. It is delivering message that family is considered as a part of the army’s family. Soldiers must obtain their duty for country, such as being sent to the middle of war and other duties that might risky for their lives. Under this circumstance, they must leave their family in a long term. Therefore they need their family to encourage them and support them through the hard duty. Soldiers committed to their family as well to their country institution. They will be more committed to institution when their family is concerned Bourg and Segal 1999. The army situation showed that fimancial issue is no longer matter to show higher organizational commitment. Organization need to support financially and emotionally to employees in order to keep their employees. Despite of the financial award or emotinal award , office redesign is also one the factor that may enhamce employee’s organizational commitment. An office redesign environment is significant in improving employee’s commitment. Employees enjoying work in a comfortable environment thus may increases employee’s performance. A comfort and less distraction make them feel like they want to stay longer inside the office. Nevertheles, organization’s award in expressing appreciation for the sacrifice employees also generates power d ue to increasing employee’s commitment Morrow 2012. A positive relationship between emotional intelligence and organizational showed by other professions. Emotionally , Turkish nurses showed higher organizational commitment , while emotional appraisal showed no effects. This study is contrary to Morrow’s study among Army. Nurses are willing to help other in self-awareness and understand their own behavior. By having good emotional capacity, nurses will be able to control their feeling and understand other’s feeling as well , thus enable them to be effectively dealing with other’s feeling Guleryuz and al 2008. As social worker, caregiver should deliver services compassionately. Any particular award in term of this emotion service is less concerned because nurses perceive this as part of their job and thus become nurses nature’s culture. Previous research showed that subculture associated strongly to organizational commitment among nurses. Innovative and supportive subcultures were found positively impact commitment, while a bureaucratic subculture had moderate impact to commitment. Higher order needs such as level of control, amount of interaction and the level of relationship to organizational commitment . Organizational subculture had stronger effect to organizational commitment while organization culture had less effect. The study also showed that age showed small effect on commitment. Other factors such as education , length of position and years of experience did not show any relationship with commitment Lok and Crawford 1999. Nurses need to be acknowledged by other profession within hospital. The higher-order needs such as level of control enable them to be watched off thus lead a further interaction to others. While Doctors in Turkey concider the patterns of leaders effect hospital’s organizational culture but the The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 208 harmony of leadership behavior and the organizational culture did not efect organizational commitment. Their loyalty is not affected by organizational culture. They embraced the organization culture may have been low. Turkish Doctors also work at private clinics outside the working hour in hospital. This what assume to be the reason of the lower concideration of the hospital organizational culture by doctors. As the doctor’s perception of leadership behavior is high, the level of organizational commitment will rising up as well. In accordance to this situation, hospital must establish a full participation scheme among its employees Gocke and al 2014. Other research on executive Doctors revealed dual commitment among them. This dual commitment reflecting other work attitude that encouraged success in management role. The research found that executive Doctors are able to balancing both organizational and professional commitment. They showed commitment when the work environment is comfortable and supportive Timothy J Hoff 2001 Organizational commitment lays on every span of organization. People within organization at every hierarchical level perceived organizational commitment differently. A research among different organization in India found that more job autonomy on employees, then job commitment will high as well. Employees in higher level showed higher commitment if they were giving job autonomy. Lower level employees showed lower job commitment even though they were on high job autonomy. The variable of job autonomy is an effective variable only on higher hierarchy group and ineffective variable incase of low hierarchy group of employees Sisodia and Das 2013. Employees with greater job autonomy is like being trusted by organization. Employees are able to manage their own job and free to make decision related to the job. Therefore, they feel like their efforts were appreciated by organization. A study among public and private organizations in different field showed that affective commitment directly effect professional efficacy and influenced turnover negatively. It also reduces professional burnout and withdrawal behavior. Continuance commitment positively affect cynicism , resistant to change and witholding effort and effect negatively to propensity to turnover. Employees spent emotional exhaustion when organization give less attention on employment alternative. Within this situation, employees will concidering their commitment to organization. Normative commitment was the predictor of cynicism, while cynicism enhaces the intention to change resistant among male. Both male and female positively affect professional efficacy indirectly and negatively affect propensity to turnover. Witholding effort is what makes lower professional efficacy, higher emotional exhaustion and frequent cynic behavior Endriulaitiene 2014. Different combinations of multiple commitment has now become a challenging issue within organization. The focus of many employee’s commitment were driven down to smaller organizational such as division, branches and teams Meyer and al 1998. In summary to this article, different perspective of organizational commitment among professions may implies on to managerial policy. The manager bridging employees and organization in terms of achieving better performance and fulfilling the organizational goals. Due to asses the organizational commitment among professions , organization need to assert some policies. The extant review of this article and other research, the policies to establish are : 1. Educational organization such primary school and high school must create a speciffic culture that will determine or ganization’s colour and able to promote competitive performance among teachers. 2. Lawyer’s employed organization should provide definite status among its employees. Professional management within organization is unconditionally. 3. A comfortable “working hood” , decreasing contract employees and establishing bond among employees will likely a blend of actions that finance professionals organization should be provided. 4. Army’s institution need to establish family programs, so that soldier’s family feel like they are embraced as an internal part of the institution. Exhibiting family gathering or any similar activity is recommended. 5. Building a state minded culture is likely recommended to hospital. As Doctors perceived less organizational culture while Nurses are more dependable to organization subculture. The role of the leader is important due to this policy. 6. Due to other professions, employed organization must increase trust to their employees by giving more job autonomy. Organizational culture need to be strengthened in order to rise stronger and competitive situation among employees. This article has come in to some conclusions : 1. Primary school does not have speciffic organizational culture. Teachers perceived The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 209 supportive culture higher than achievement culture. They showed lower organizational commitment. Marital status did influence their organizational commitment. Married teachers more committed to organization. The longer they work and the older they were become important indicators in establishing organizational commitment. Senior teacher showed more organizational commitment compare to the younger one. Organization need to create speciffic culture that will enhance teacher’s motivation on performance and organizational commitment. 2. Lawyers perceived the institution status as predictor to their commitment. Their loyalty depends on their career development. Lawyers in nonprofessional institution showed lower organizational commitment. Organization must establishes career development among their employees lawyers. Employees need a certain status of their employment. 3. Finance professionals concidered organizational commitment less effect to their performance. Employed organization found difficulties in employe e’s commitment because oftenly they spent indepth relationship with clients. Female accountants are less committed to organization, especially those with external orientation. The comfortable working environment was also a predictor to employee’s commitment. Under this condition, organization must concider to reduce contract workers, establish sufficient reward for emplpoyees and also provide comfortable workinghood. The more employees feel comfortable within the workplace, the longer they will stay. 4. Soldiers perceived family support by the institution as predictor to organizationl commitment. They committed more to organization when their family were supported. Organizational commitment is lies under their vein. Organization need to enhance more family programs for soldiers. Organization need to make bond with soldier’s family. 5. Hospital subculture influence nurse’s commitment. They do not need any emotional awards, because affection is what they deliver daily as a caregiver. They need to be recognized and being fully involved. Hospital should promote stronger culture that even lies on wards or department s within the institution. Hospital also need to establishes nurse’s involvement in hospital’s decision making. 6. Doctors concider organizational commitment based on the leader behavior. They perceived organizational culture in lower level. The background is that they also work at private clinic outside the working hour. There was a conflict of culture because they work at more than one organization. Therefore their organizational commitment is low. 7. Other professionals in service field showed commitment were based on job autonomy. They feel free to develop and manage their job, and thus makes them enjoy the job. Job autonomy were given to higher level officer , this showed that higher level officer established higher commitment. Moreover, affective commitment influence professional efficacy and negatively influenced turnover, professional burnout and witholding behavior. Continuance commitment promote cynicism behavior and change resistant, especially to male. Witholding effort is what promotes lower professional efficacy , burnout and change resistant. Under this circumstance, organization need to established trust among employees by giving sufficient job autonomy. Thus deliver stronger positive culture within the organization. An indepth review about organizational commitment among professions within this article was unable to cover all professions. It is realized that there were more professions to review. Nevertheles, this fruitful review representing organizational commitment on social workers at most. Further review on other profession is recommended for the future study. 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The Journal of Human Resource and Adult Learning 3 2. pPierro and al 2013,Vale´au 2012 qiQi and al 2014, Stockdale 2003, The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 211 Mediating Role of Job Satisfaction on Effects of Compensation Distributive Justice, Compensation Procedural Justice, Person Organization Fit PO-Fit on Organizational Commitment Survey on Regional Offices of Ministry of Religious Affairs West Sulawesi Province Nur Wahyunianti Dahri 1 Heru Kurnianto Tjahjono 2 1 Department of Management Universitas Muhammadiyah Yogyakarta heruutilitasyahoo.com 2 Department of Management Universitas Muhammadiyah Yogyakarta niantidahrigmail.com ABSTRACT Regional Offices of Ministry of Religious Affairs West Sulawesi Province is the government agency tasked to carry out goverment duties and development in the field of religion in the province of West Sulawesi that consistently enforce labor discipline as well as a variety of comprehensive programs to increase employee commitment to the organization. The most important factor to ensure that employees are held to support the organizations commitment is equity compensation, a match between the value of an individual with the organization or person-organization fit PO-Fit and job satisfaction. This study was conducted to determine the mediating role of job satisfaction on effect of distributive justice compensation, procedural justice compensation, P-O Fit to organizational commitment. Poupulasi used are all permanent employees in the Ministry of Religious Affairs Regional Office in West Sulawesi province by using purposive sampling technique in sampling.To analyze the data, data analysis techniques used in this study is the method of SEM Structural Equation Modeling . Keywords: Regional Offices of Ministry of Religious Affairs West Sulawesi Province, Job Satisfaction, Compensation Distributive Justice, Compensation Procedural Justice, Person Organization Fit P-O Fit, Organizational Commitment, SEM Structural Equation Model

1. INTRODUCTION

Regional Offices of Ministry of Religious Affairs West Sulawesi Province is the government agency tasked to carry out government duties and development in the field of religion in West Sulawesi province that continues to develop and improve systems management capabilities in developing human resource for development organizations committed to the fullest directing employees to work effectively and efficiently in order to achieve organizational goals, namely to create a Community of West Sulawesi religious and malaqbi . A variety of important tasks to be carried out by the Regional Office of the Ministry of Religious Affairs of West Sulawesi province and thus require good performance of each employee. Regional Office of the Ministry of Religious Affairs of West Sulawesi province consistently enforce labor discipline as well as a variety of comprehensive programs to increase employee commitment to the organization. One of the most important factors to ensure that employees are held to support the performance and organizational commitment in the Regional Office of the Ministry of Religious Affairs of West Sulawesi province is compensation justice. Justice researchers has consistently identified three types of perceptions of justice, namely: distributive, procedural, and interactional Byrne et al Colquitt in., 2003. Value of distributive and procedural justice have become important factors in the decision. Perceptions of distributive justice is a comparison with another Marshall, et al., 2001, whereas the individuals perception of procedural justice individuals within the organization while procedural rules that exist in the organization are met by the policy makers. Conversely, if the procedures in the organization are violated, the individual will perceive injustice Sabbagh, 2003. Tjahjono 2010, said that the values of justice is a very important element in managerial decision making. Decision- making in the form of compensation, promotion career, formal performance appraisal and other managerial decisions. Not only notice to compensation justice, a match between the value of an individual with the organization or person-organization fit PO-Fit is The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 212 important because it will have implications on the rise in the organizational commitment of employees while on duty at the Regional Office of the Ministry of Religious Affairs of West Sulawesi Province. Individuals who feel an injustice will perform negative actions in response to the treatment organization. If these measures do not restore fair treatment of the company, the employee will be inclined to take action to resign. PO-Fit is key to maintaining a flexible and committed work force that is necessary in a competitive business environment and a tight labor market Iplik, Kemal and Azmi, 2011. Besides PO-Fit, high level of job satisfaction will affect employees organizational commitment towards the organization. Employees who are satisfied it will have organizational commitment made to work optimally in achieving organizational effectiveness thus improving organizational outcomes. In this case the organization to get a number of outcomes such as productivity, commitment and performance while individuals get satisfaction on a number of policies such as compensation systems, career, work environment and others. In this context, organizational outcomes associated with something that is earned by the employees personal outcomes and relates to something that is obtained by the organization organizational outcomes generally in research proxy for organizational commitment Tjahjono, 2010. Job satisfaction refers to a persons attitude towards his job. Employees with a high level of job satisfaction showed a positive attitude towards work which they are responsible. Belief that satisfied employees will take effect for the company, making job satisfaction becomes aware of the company. According to Meyer and Allen 1991, the relationship will provide a sense of effective employee motivation, the next will result in job satisfaction job satisfaction, which will result in a commitment to remain in the organization. The success of an employee is determined by job satisfaction, so that when the satisfaction and success achieved, the employees are committed to the organization. One of the factors to increase the commitment is to provide compensation in the form of salaries, incentives and benefits in accordance with the wishes and needs of employees. Employees also expect fairness and transparency in the system and the process of compensation. Research on equity compensation indicates that the individual will show the level of performance and a higher level of commitment, and job satisfaction increase in payments, an increase in the level of trust, and the attitude of members of the organization when they feel that the decision-making process is fair, and they were treated fairly Rupp and Cropanzano in Byrne et al., 2003. 2. BASIC THEORY 2.1 Job Satisfaction According to Luthans 2006 job satisfaction is an emotional state that is happy or positive emotions derived from the assessment of a persons job or work experience. Rival and Mulyadi 2012 states that job satisfaction is an assessment of how far the workers on the job as a whole satisfy their needs. Spector 2006 in this case states that job satisfaction Sese describe how you feel about the work and other aspects of the job. This is a need-asan of liking satisfied or dislike not satisfied to their work and other aspects in their work, such as salary, job characteristics, work colleagues, and superiors. There are three dimensions of job satisfaction according Luthans 2006, as follows: a Job satisfaction is an emotional response to the situation and kondisikerja. Thus, job satisfaction can be seen and to be expected; b Job satisfaction is often determined by how well the results achieved met or exceeded expectations. For example, if members of the organization feel that they are working too hard than others in the department, but receive fewer rewards, then they might have a negative attitude towards work, leadership, or their co-workers. Conversely, if they feel that they are treated well and paid appropriately, then they will probably have a positive attitude towards their work; c Job satisfaction represents several related attitudes. Luthans 2006 suggested that high employee satisfaction levels tend to have better physical health, learn the tasks associated with the new job more quickly, have a bit of work accidents, improve performance, and reduce absenteeism. Ways to improve job satisfaction, including: a Make work fun; b Have a salary, benefits, and fair promotion opportunities; c Adjust the people with jobs that match their interests and skills, d Design work so interesting and fun. Job satisfaction is an individual orientation that influencing role in the work and the characteristics of the job. Job satisfaction is a reflection of ones feelings towards his job. Individuals who join the organization will bring a set of desires, needs, desires that shape employment expectations Tett Meyer, 1993. Job satisfaction showed concordance between ones expectations that arise with regard to employment, as a set of feelings. The 2015 International Conference of Management Sciences ICoMS 2015, April 23, UMY, Indonesia | 213

2.2 Compensation Justice

Compensation is everything received by employees as remuneration for their work Hanni Handoko, 2001. Where compensation programs are also important for the company because it reflects the organizations efforts to maintain its human resources. In addition, compensation in the form of wages and other remuneration is the biggest cost component-component and important. When wages and salaries are not administered properly it will have an impact on the loss of trained human resources and has consequences must train employees again. Researchers justice has consistently identified three types of perceptions of fairness, namely: distributive, procedural, and interactional Byrne et al Colquitt in., 2003. Perceptions of distributive justice refers to the fairness judgments about the results received by the individual. The findings of the study explained that distributive justice related to the individuals perception on its relationship with other individuals who have the resources Marshall et al., 2001. Tjahjono 2010; 2011 said that the values of justice is a very important element in managerial decision making. Structural decision-making in the form of compensation, promotion career, formal performance appraisal and other managerial decisions. Value of distributive and procedural justice have become important factors in the decision. The first theory is related to workers perceptions about the results is called distributive justice. A second theory of procedural justice that focuses on employee perceptions of fairness of the procedures used to make decisions. And the third theory is interactional justice that emphasizes the perception of fairness of interpersonal treatment received by workers. Distributive justice has evolved to develop the theory in relation to every aspect and employee perceptions regarding the results of the decisions taken by the organization and their responses to the basic form of this distribution justice Thornhill and Saunders, 2003. Compensation distributive justice is the allocation of employee perceptions of fairness salary they receive. From the aspect of distributive justice employees Consider the allocation of the salary distribution Tjahjono, 2009. Procedural justice is the perception of the fairness of the procedures used to the make decisions so that every member of the organization was Involved in it. Procedural justice is about the perception of employee equity compensation mechanism allocation process or the salary they receive. Compensation procedural justice effect on their attitudes Tjahjono, 2009; Palupi, 2013. Procedural justice relates to a process or procedure to distribute the awards. The theory of procedural justice with regard to the procedures used by Organizations to distribute the results and organizational resources to its members. Bass 2003 stated that procedural justice departed from the psychological processes experienced by the employee, the employees how to evaluate procedures related to justice. Gilliland in Pareke 2003 stated that the perspective of the structural components saying that procedural justice is a function of the extent to which a number of procedural rules obeyed or violated. These rules have important implications because it is seen as a manifestation of the values of the basic processes in the organization. So individuals in the organization will perceive procedural justice when the procedural rules that exist in the organization are met by the policy makers. Conversely, if the procedures in the organization are violated, the individual will perceive injustice.

2.3 Person Organization Fit P-O Fit