NORMATIVE COMMITMENT AS A MEDIATOR DISTRIBUTIVE JUSTICE AND PROCEDURAL JUSTICE TOWARDS ORGANIZATION CITIZENSHIP BEHAVIOUR - Digital Library Universitas Muhammadiyah Purwokerto

  

NORMATIVE COMMITMENT AS A MEDIATOR DISTRIBUTIVE JUSTICE

AND PROCEDURAL JUSTICE TOWARDS ORGANIZATION CITIZENSHIP

BEHAVIOUR

  Alfato Yusnar Kharismasyah*, Bima Cinintya Pratama Universitas Muhammadiyah Purwokerto

• email: chipatoyusnar@gmail.com

  ABSTRACT

  Organizational Citizenship Behavior (OCB) is a crucial factor for efficiency, effectiveness, innovation, and the ability to adapt in a variety of organizations. OCB is a performance indicator that not only measures what an employee can achieve in terms of quantity required but also includes spontaneous and innovative behavior. Bank Negara Indonesia is one of the Goverment Company that are undergoing a good change in the operational system as well as human resources that aim to achieve maximum work. Inovation in the work system at the banking company provide stimuli for employees from basic staff until management position to always be active and has advantages in understanding their job desk. The extraordinary behavior called Organizational Citizenship Behavior is expected change the mindset where an employee is not just mastering one ability to work but can know the ability of other units outside their job desk. Therefore, the purpose of this study is to analyze the influence of Distributive and Procedural Justice on OCB through Normative Commitment.

  This research is descriptive and verifikative analysis. Descriptive research is conducted to obtain a description of Distributive Justice, Procedural Justice, Normative Commitment, and OCB. While verifikative research is done for knowing the relationship between variables through statistical calculations. The method used is survey method, while the sampling technique is random sampling with 65 respondents. Data analysis in this research using Partial Least Square (PLS) analysis and found that Distributive Justice, Procedural Justice has a significant effect on Normative Commitment that affects the OCB.

  There are several researchers who have researched OCB from a human resource point of view useful for the company. The contribution of this research is to help managers to formulate strategies and implementation of policies related to the proper management of Human Resources and create a new Human Resources with all the best ability to play an extra role in doing the job.

  Keywords : Justice, Commitment, Organizational Citizenship Behaviour

  INTRODUCTION The good companies always pay attention to all aspects that can improve the quantity and quality of the company to be able to achieve the target company, especially in maximizing the potential for each employee. However, the current development and the increasingly fierce competition of work demanding every employee on the company itself to be able to deliver high performance in its effort where the behavior of the organization owned is able to exceed the work standards set by the company. The banking company in this case is Bank Negara Indonesia is one of the government enterprises that are experiencing a period of change that always leads to better in operational systems and human resources which aims to achieve maximum work, especially on the human resources required to work more than just jobdesk that has been set. The extra ordinary behavior commonly called Organizational Citizenship Behavior is expected to change the mindset where an employee not only master one's ability in work, but can master some ability or skill on other units outside of his job desk.

  Some researchers have examined the relationship between Organizational Citizenship Behavior may be influenced by other variables, one of which is research conducted by Baker et al (2006) who examines about OCB influenced by Distributive Justice and Procedural Justice. The results of this study indicate that the relationship of Distributive Justice and Procedural Justice to OCB is not very significant, therefore it needs to be considered further. From the exposure can be made a problem statement that is the limitations of research conducted by Baker et al (2006) which examines the effects of Distributive Justice and Procedural Justice on OCB and suggest adding Normative Commitment as a mediator. then in this research formulated the problem as follows:

  1. How is the effect of Distributive Justice on Normative Commitment?

  2. How is the effect of Procedural Justice on Normative Commitment?

  3. How is the effect of Normative Commitment as a mediator between Distributive Justice? The next section of this paper will discuss about literature review, method of the research, result, discussion, conclusion, and implication of business or management that can be taken from this research.

  LITERATURE REVIEW AND HYPOTHESIS DEVELOPMENT Organizational Citizenship Behavior

  1. Definition of Organizational Citizenship Behavior (OCB)

  Organizational Citizenship Behavior (OCB) is an individual contribution beyond the demands of workplace roles direward by the acquisition of task performance. Organizational Citizenship Behavior (OCB) is a crucial factor for organizational efficiency, effectiveness, innovation and adaptability in a variety of organizations (Organ, 1988; Rifai, 2005). Freund (2003) Defines that Organizational Citizenship Behavior (OCB) is a behavior that is given beyond the formal function and task that has been assigned to employees of an organization, such behavior is indispensable because with it will contribute better in organizational performance. Podsakoff & Mackenzie (1994) argue that OCB may decrease the organization's need to reduce the resources used in performing the work.

  2. Dimensions of Organizational Citizenship Behavior (OCB)

  Many researchers outline the dimensions Organizational Citizenship Behavior (OCB). Organ (in Diefendorff et al., 2002) outlines the five dimensions of Organizational Citizenship Behavior (OCB), namely: a. Altruism, is a willingness to give help to others.

  b. Civic Virtue, members give contribution on the political issues in the organization in a responsible manner.

  c. Conscientiousness that members are discipline in time, have high percentage of attendance, and perform more than normal needs and expectation.

  d. Courtesy, is kind and respect to others, including such behaviors as helping someone prevent a problem and making strategic steps in order to soothe/reduce a problem.

  e. Sportsmanship, is a behavior that emphasizes positive aspects of organization rather than the negative aspects, indicates a behavior that is not pleased with process, does not complain, and does not exaggerate small problem.

  Normative Commitment Normative commitment describes feelings of attachment to stay within the organization.

  Members of organizations with high normative commitment will continue to be members within the organization and never move to another, because he felt he should be in the organization. Normative commitment is a reflection of feelings a person's responsibility to remain part of the organization. Normative Commitment occurs when employees in an organization feel willing to remain in the organization concerned, employees have a strong awareness of the organization and they remain with the organization because they feel they should do so. Normative commitment with respect to employee feelings about the obligation to remain with the organization (Meyer and Allen, 1991). In other words as stated by Meyer & Allen (1990) that employees have a normative commitment level because they feel they should already work maximally in the company.

  Procedural Justice

  As the term is used within justice research, a procedure is a series of sequential steps used to guide allocation behaviors or judgments. As individuals participate in these procedures, they form opinions about their fairness. Thus, procedural justice can be defined as the fairness of the means by which an allocation decision is made. Procedural justice is defined as perceived fairness of the processes and procedures used to allocate decisions (Kreitner and Kinicki, 2003). A person who feels treated fairly by the company is fair in his job status, work conditions that are in accordance with his personality can encourage employees to work more optimally because employees feel comfortable with their work. Justice in providing work procedures or giving work status prioritizes how employees get justice where their ability to work is directly proportional to the career achievements that will be obtained (Rifai, 2005), which one work performance is a dominant element in procedural justice. Rifai explained the level of measurement from Procedural Justice is as follows: 1. Assessment of work performance according to the implementation of work.

  2. Justice of work achievement assessment 3. Accuracy of performance evaluation work.

  4. Errors in work achievement assessment

  Distributive Justice

  Kreitner and Kinicki (2003) define distrbutive justice as perceived fairness of how resources and rewards are distributed or allocated. Distributive justice is closely related to the wages of employees, organizations that want to realize maximum performance for their employees must be able to meet pay equity, as suggested by Carraher et al (1992). Distributive justice addresses the perceived fairness of those verdicts. Generally speaking, individuals judge the fairness of their outcomes with respect to some referent standard (Kulik & Ambrose, 1992; Stepina & Perrewe, 1991). People do not always divide things the same way. For this reason, allocations can be judged against the outcomes produced by certain allocation rules. Three rules in particular have received a great deal of attention: equality, need, and equity (see Deutsch, 1985; Kabanoff, 1991; Skitka & Tetlock, 1992). When using an equality rule, distributive fairness occurs when every member of a given social group receives the same outcomes. When using a need rule, distributive fairness occurs when the most needy receive the most compensation. When using an equity rule, fair compensation is based on individuals' contributions or inputs. Here are the indicators of Distributive Justice :

  1. Compensation is relevant with contribution to organization

  2. Compensation is relevant with responsibility

  3. Compensation is relevant with education level and training

  4. Compensation is relevant with work achievement

  5. Compensation is relevant with work risk

  Hypothesis Development Assessment of justice in organizations has an impact on attitudes and reactions to employees.

  Rifai (2005) suggests that both distributive justice and procedural ju stice have effect on employee engagement to stay in the organization evaluation from supervisor. This research also found that distributive justice has a major influence on commitment to the organization. Besides that, Pareke et al (2003) in his research suggests that normative commitment is a mediating variable of correlation between distributive and procedural justice againts OCB. Nadiri and Tanova (2010) investigated the effect of organizational justice perceptions (distributive, procedural, and interactional justice) of hotel employees with job satisfaction, OCB, and turnover intention. Their study found that distributive justice was the stronger predictor of all various work related variables (job satisfaction, OCB, and turnover intention) than procedural justice With this knowledge of distributive justice, it can help managers to be fair in distributing financial awards and promotions so that employees feel obliged to contribute maximally to the company (Kreitner and Kinicki, 2003).

  Hypothesis 1: Distribu tive justice has effect on normative commitment.

  Cobb in Sugiarti, (2005) explains that when the employees are treated fairly, they will have attitudes and behaviors needed for successful organizational change even in difficult conditions though. Conversely, when organizational decisions and managerial actions are considered unfair workers will feel not appreciated by the company so that the sense of ownership and obligation to berkonstribusi to the company will be reduced. Alexander and Ruderman (1987) prove the relationship between procedural and distributive justice factors and six organizational variables, including job satisfaction, commitment organization evaluation of supervisor, conflict-harmony, turnover intention, trust in management, and tension-s tress, they confrm that procedural fairness is associated with low conflicts and disharmony within the organization. This is in line with Samad's (2006) study examines the relationship of influence between procedural justice and distributive justice to the work of the employees which includes normative commitment and job satisfaction.

  Hypothesis 2: Procedural justice has effect on normative commitment.

  Organizational citizenship behavior can be defined as the contribution of employees to the organization beyond the formal commitment in work. Rifai, 2005) in his research found that three dimensions of commitment (affective commitment, normative commitment, continuance commitment), affective commitment had the most powerful influence with citizenship behavior, then followed by normative commitment, however continuance commitment is not related in the behavior. OCB can arise from various factors in organization, among others are due to employee‘s work satisfaction and high organization commitment (Robbin, 2006). When employees feel satisfed with their work, the employee will work optimally to complete his work, even doing some things outside his job desk (Robbin and Judge, 2007). Many researchers have indicated that there are many factors that can affect organizational citizenship behaviors and turnover intention. They have suggested that organizations offering better and improved organizational justice are more likely to succeed in attracting and retaining valuable staff (Abu Elanain, 2010a; Ince & Gül, 2011; Lambert et al., 2010). The reason is that organizational justice is associated with organizational commitment (Azeem, 2010), employee job satisfaction, and organizational citizenship behaviors (Olkkonen & Lipponen, 2006). Research conducted by Kuehn and Al-Busaidi (2002) found that Normative Commitment is a significant predictor of OCB. This is also supported by the research of Bakker et al. (2006) who argued that affective commitment and normative commitment can be a mediating variable between Distributive justice and Procedural justice to OCB.

  

Hypothesis 3: Normative commitment can mediate between Distributive Justice and Procedural Justice

  on OCB Based on the hypothesis that has beenexplained earlier, the research model that will be studied in this research is shown in the following fgure:

  

1. Research Framework

RESEARCH METHOD Type of the Research

  It belongs to survey research. Survey research is used to clarify the causal relationship among variables through hypothesis testing (Singarimbun and Effendi,1995).

  Type and Source of Data

  The data used in this research were primary data. Primary data are original data collected by a researcher to answer research problem (Istijanto, 2005).

  Method for Collecting Data

  Questionnaire is a technique for collecting data by administering questions to respondents in order for them to give response for those questions (Umar, 2000). The questions of the questionnaire in this research were asked to know respondents‘ response against variable distributive justice, procedural justice, normative commitment, and OCB.

  Sample

  The sampling technique used in this research was saturation sampling (census). Saturation sampling is when all population members are used as the sample (Sugiyono, 2003: 61). The researcher used this method because the numbers of the employees of PT. Bank BNI (Persero) Kebumen Branch were 65 persons (less than 100).

  Defnition and Measurement of Research Variables and Indicators

Table 3.1. Definition of Variable Concepts and Operations

  Variable Concept and Operational Definition Indicator (1) (3) (4)

  Conceptual : relevant

  Distributive

  1. Compensation

  justice Perceived justice about how resources with the contribution to and rewards are distributed or allocated organization.

  (Kreitner and Kinicki, 2003). relevant

  2. Compensation Operational: with responsibility Perception of the employees of

  3. Compensation is relevant BNI Branch Kebumen about with education level and rewards and compensation received training. from the organization

  4. Compensation is relevant with work achievement

  5. Compensation is relevant with work risk

  Procedural Conceptual :

  Procedural justice is defned as of work

  justice

  1. Assessment justice that is felt from the process achievement consistent and procedure used to allocate with work realization decision (Kreitner and Kinicki, of work

  2. Justice 2003) achievement assessment of work

  3. Accuracy achievement evaluation Operational : in work

  4. Errors Feeling or perception of justice achievement assessment felt by the employees of BNI

  5. Justice in determining Branch Kebumen against the position system used to allocate rewards for themselves

  Normative Conceptual : Comitment Employee feelings about the

  1. Dedication obligation to stay together with his

  2. Loyalty organization (Meyers and Allen,

  3. Keep working on the 1996) organization Operational :

  4. Not moving to another The feeling of BNI employees of organization Kebumen Branch about their to the

  5. Contribution obligation to stay together with their organization organization.

  Organizational Conceptual :

  1. Altruism

  Citizenship OCB is formulated to describe

  2. Conscientiousness

  Behavior employees‘ interest in working more

  3. Sportsmanship than usual and exceeding the role

  4. Courtesy they are responsible to (Organ,

  5. Civic virtue 1988). Operational Interest of the employees of BNI Branch Kebumen to perform the job more than they are expected to.

  Partial Least Square Analysis

  This research used Partial Least Square (PLS) to analyze data using SmartPLS software. PLS is structural equation modeling (SEM) based components or variance. According to Ghozali (2006), PLS is alternative approach that moves from SEM approach based covariance into variancebased. Covariance-based SEM generally test causality/theory, meanwhile PLS is predictive model. PLS is an powerful analysis method because it is not based on many assumptions (Ghozali, 2006). For example, data is not always normally distributed and sample should not always be big. Besides to confrm theory, PLS can also be used to clarify the correlation among laten variables. PLS can at once analyze construct formed with reflective and formative. It cannot be performed by covariance-based SEM because it will be unidentifed model.

  RESULT OF THE RESEARCH AND DISCUSSION Partial Least Square Analysis

  The calculation using smartPLS 2.0 generates the following result:

1. Convergent Validity Test

  In convergent validity test, indicator that has correlation value less than 0,500 should be taken out of the model because it is considered to be unreliable and insignifcant. After that, re estimation to model will be carried out. The result of this research is that all indicators in the variable have two correlation values more than 0,500 so that it can be used as measurement tool.

  Figure 2 : Convergent Validity model

  PJ: Procedural Justice; DJ: Distributive Justice; NC: Normative Commitment; OCB: Organizational Citizenship Behaviour

2. Discriminant Validity Test

  Discriminant validity can be recognized by comparing square root of average variance extracted value of each variable with correlation coefcient value of other variables. Model is assumed to have sufcient discriminant validity, if square root of average variance extracted value is higher than correlation coefcient value among variables.

  Table 2. Discriminant Validity Table Average Square Root variance of Average extracted Variance Distr. Just Proc. Just Nor. Com OCB (AVE) Extracted Distr. Just 1.000

  0.762 0.873 0.724 1.000 0.736 0.858

  Proc. Just Nor. Com 0.474 0.454 1.000 0.805 0.897 OCB 0.266 0.533 0.675 1.000 0.640 0.800

  Based on the data on Table 2, it can beseen that square root of average variance extracted value of all variables are higher than correlation coefcient value among variables. Thus, it can be said that variable distributive justice has met discriminant validity.

3. Composite Reliability Test

  Composite reliability test is done to test reliability of research variables. In addition, the result of composite reliability test can be seen in Table 3

  Table 3. The result of Composite Reliability Test Composite Reliability Distr. Just 0.941 Proc. Just 0.937 Norm. Comm 0.933 OCB 0.898

  Composite reliability test is said to be reliable if composite reliability value is higher than 0,700. Based on the data in Table 3, it can be seen that composite reliability value of variable distributive justice, procedural justice, normative commitment and organizational citizenship behavior is higher than 0,700. Thus, variable distributive justice, procedural justice, normative comitment, and organizational citizenship behavior are reliable.

  Structural Model Analysis

1. First Hypothesis Testing

  greater than the value of t

  Procedural justice has a significant effect on normative commitment on PT. Bank Negara Indonesia (Persero), Tbk. Branch Kebumen. This shows that the better the company's management implements policies relating to procedural justice, the employees will be more committed to work on PT. Bank Negara Indonesia (Persero), Tbk. Branch Kebumen. The results of this study are also

  Distributive justice has a significant effect on normative commitment at PT. Bank Negara Indonesia (Persero) Tbk. Branch Kebumen. It shows that the better the management of the company applies policies related to distributive justice, employees will feel obligated to contribute and work on PT. Bank Negara Indonesia (Persero), Tbk. Branch Kebumen. The results of this study are consistent with the results of research conducted by Kreitner and Kinicki, 2003 which proved a significant causal relationship between distributive justice with normative commitment.

  CONCLUSION, LIMITATION AND IMPLICATION Conclusion

  Third Hypothesis Testing Based on the analysis result of Partial Least Square, the value of t statistic of variable normative commitment against organizational citizenship behavior was 9,767, higher than that of t table. Thus, Ho was rejected and Ha was accepted which means that partially variable normative commitment had signifcant effect on organizational citizenship behavior and the third hypothesis which states that normative commitment had signifcant effect to mediate between Distributive Justice and Procedural Justice on OCB, was accepted. The result of structural test generates loading factor at 0,675. This number is above 0,40 which shows that the effect of normative commitment on organizational citizenship behavior was signifcant. 67,5% of normative commitment factor was very meaningful for organizational citizenship behavior while 32,5% was determined by other factors.

  Based on the analysis result of Partial Least Square, the value of t statistic of variable procedural justice against normative commitment was 1,732, higher than that of t table. Thus, Ho was rejected and Ha was accepted which means that partially variable procedural justice had signifcant effect on normative commitment and the second hypothesis which states that procedural justice had signifcant effect on normative commitment, was accepted. The result of structural test generates loading factor at 0,234. This number is above 0,40 which shows that t he effect of procedural justice on normative commitment was signifcant. 23,4% of procedural justice factor was meaningful thing for normative commitment while 76,6% was determined by other factors.

  . Thus, Ho was rejected and Ha was accepted which means that partially distributive justice has a significant effect on normative commitment. and the first hypothesis that distributive justice has a significant effect on normative commitment, was accepted. The result of structural test generates the value of loading factor at 0,305. This number is above 0,40 which shows that the effect of distributive justice on normative comitment is signifcant. 30,5% normative commitment was meaningful for distributive justice while 69,5% was determined by other factors.

  table

  statistic

  Structural model analysis is performed by evaluating the estimation result of path coefcient parameter and its signifcance level. In addition, the result of signifcance test of path coefcient of each variable can be seen in Table 4.15.

  distributive justice variable against the normative commitment of 2.082 where the value of t

  statistic

  From the results of Partial Least Square analysis obtained value t

  0.675 0.687 0.059 9.767 Using signifcance level at 95% (α = 0,05) and degree of freedom (n – k), the value of t table is ±1,669.

  Nor.Comm -> OCB

  0.234 0.275 0.135 1.732

  Proc. Just -> Nor.comm

  0.305 0.291 0.146 2.082

  Table 4. Parameter Coefcient and Statistical Values among Variables

original sample estimate Mean of subsamples

Standard deviation T-Statistic Distr. Just -> Nor.comm

2. Second Hypothesis Testing

  consistent with the results of Samad's research (2006) which has proven the relationship between procedural factors and distributive justice against normative commitment. Normative commitment has a significant effect on organizational citizenship behavior on PT. Bank Negara Indonesia (Persero), Tbk. . Branch Kebumen. This shows that the higher level of normative commitment owned by employees, the higher the organizational citizenship behavior of the employees of the company. The results of this study are consistent with the results of research Kuehn and Al- Busaidi (2002) found that Normative Commitment is a significant predictor of organizational citizenship behavior. Implications

  As an effort in improving the employees normative commitment, the managers at PT. Bank Negara Indonesia (Persero) Tbk. Branch Kebumen should give more attention to polices related to the implementation of distributive justice and procedural justice. The ways that can be done, among others is by providing career opportunities that are clear and transparent in accordance with the performance and employment of these employees, as well as reward in the form of both financial and non-financial based on the contribution of each employee to the organization. Assessment of working achievement should be given properly both for permanent employees and contracted employees. Assessment procedure of working achievement should be done correctly and procedure of determining position should be done appropriately and equitably based on the criteria that are underlain on the values of work professionalism.

  As an effort to optimize organizational citizenship behavior of its employees, the managers at PT. Bank Negara Indonesia (Persero) Tbk. Branch Kebumen should give more attention to polices related to the implementation of normative commitment by growing the positive value of employees to the organization for all the fulfillment of their rights as employees and to give appreciation to employees related to the implementation of their work activities.

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