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ijcrb.webs.com INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS COPY RIGHT © 2013 Institute of Interdisciplinary Business Research 133 APRIL 2013 VOL 4, NO 12 Organizational Justice, Organizational Commitment and Trust in Manager as predictor of Organizational Citizenship Behavior Herman Sjahruddin Department of Management School of Economics, STIEM Bongaya Makassar, South Sulawesi of Indonesia Armanu, Achmad Sudiro and Normijati Department of Management, Faculty of Business and Economics in Brawijaya University, Malang East Java of Indonesia Correspondence author: Herman Sjahruddin 09 Jl. Tanjung Alang I, Makassar South Sulawesi, INDONESIA 90134 Abstract The current study explored the relationship between organizational justice and organizational citizenship behavior (OCB) mediated by trust in manager and organizational commitment. Survey data were collected from a sample of 134 nurses in Makassar City Hospitals of Indonesia. The results of variance-based SEM with Partial Least Square analysis (PLS) showed that the hypothesized model fit the data very well. Organizational commitment and Trust in manager were good mediators between organizational justice and OCB. There was a positive and direct relationship between trust in manager, organizational commitment and OCB, and in organizational justice there are non-significant. Keywords: Organizational justice, Organizational commitment, Trust, Organizational Citizenship Behavior 1. Introduction The nursing service paradigm shifts from vocational services (services based on skills only) toward professional services (services with mastering the science and technology and nursing specialties). This creates a shift in hospital work dynamics, individual work to teamwork. This condition can only be done by individuals who have a high collectivity value or togetherness, more concern to group interest rather than individual interest. Therefore, the nurses, as healthcare that directly interact with patients and hospital management must be able to display extra-role behavior. Many studies have noted the importance of organizational citizenship behavior (OCB). Some even argue that the benefit of OCB is key to ensuring an organization’s survival (Organ, 1988). Theoretical basis to assess and examine relationship between this study variables refer to organizational behavior theory that focuse on OCB. OCB Theory in organization is also known as extra-role behavior, and the behavior is often known as OCB employee (good citizen). Extra-role behavior (OCB) is a work behavior outside formal job description but highly valued by employees if it done because it can increase the effectiveness and viability of organization (Katz, 1964). Furthermore, employees desire to implement OCB caused by organizational justice (Katz and Kahn, 1978; Pillai et al., 1999; Robbins and Coulter, 2005). Then, Blau (1964) Dansereau, Graen, & Haga (1975), Holmes (1981) suggested that trust is result of social exchange process that very favorable, with subordinates having trust in manager, resulting OCB in organization. In addition, organizational commitment is an important factor to realize OCB (Greenberg and Baron, 2000; Luthans, 2006). This is consistent with Dirks and Ferrin (2000) that relationship between trust and attitudes on outcomes (organizational commitment) is much stronger than relationship between trust and OCB. Therefore, we conclude theoretically that organizational justice, trust and commitment are deciding factors to increase OCB.

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Organizational Citizenship Behavior

Transcript of OCB

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Organizational Justice, Organizational Commitment and Trust

in Manager as predictor of Organizational Citizenship

Behavior

Herman Sjahruddin

Department of Management

School of Economics, STIEM Bongaya

Makassar, South Sulawesi of Indonesia

Armanu, Achmad Sudiro and Normijati

Department of Management, Faculty of Business and Economics in Brawijaya

University, Malang East Java of Indonesia Correspondence author:

Herman Sjahruddin

09 Jl. Tanjung Alang I, Makassar

South Sulawesi, INDONESIA 90134

Abstract

The current study explored the relationship between organizational justice and organizational citizenship

behavior (OCB) mediated by trust in manager and organizational commitment. Survey data were collected

from a sample of 134 nurses in Makassar City Hospitals of Indonesia. The results of variance-based SEM

with Partial Least Square analysis (PLS) showed that the hypothesized model fit the data very well.

Organizational commitment and Trust in manager were good mediators between organizational justice and

OCB. There was a positive and direct relationship between trust in manager, organizational commitment

and OCB, and in organizational justice there are non-significant.

Keywords: Organizational justice, Organizational commitment, Trust, Organizational Citizenship Behavior

1. Introduction

The nursing service paradigm shifts from vocational services (services based on skills only) toward

professional services (services with mastering the science and technology and nursing specialties). This

creates a shift in hospital work dynamics, individual work to teamwork. This condition can only be done by

individuals who have a high collectivity value or togetherness, more concern to group interest rather than

individual interest. Therefore, the nurses, as healthcare that directly interact with patients and hospital

management must be able to display extra-role behavior.

Many studies have noted the importance of organizational citizenship behavior (OCB). Some even argue

that the benefit of OCB is key to ensuring an organization’s survival (Organ, 1988). Theoretical basis to

assess and examine relationship between this study variables refer to organizational behavior theory that

focuse on OCB. OCB Theory in organization is also known as extra-role behavior, and the behavior is

often known as OCB employee (good citizen). Extra-role behavior (OCB) is a work behavior outside

formal job description but highly valued by employees if it done because it can increase the effectiveness

and viability of organization (Katz, 1964).

Furthermore, employees desire to implement OCB caused by organizational justice (Katz and Kahn, 1978;

Pillai et al., 1999; Robbins and Coulter, 2005). Then, Blau (1964) Dansereau, Graen, & Haga (1975),

Holmes (1981) suggested that trust is result of social exchange process that very favorable, with

subordinates having trust in manager, resulting OCB in organization. In addition, organizational

commitment is an important factor to realize OCB (Greenberg and Baron, 2000; Luthans, 2006). This is

consistent with Dirks and Ferrin (2000) that relationship between trust and attitudes on outcomes

(organizational commitment) is much stronger than relationship between trust and OCB. Therefore, we

conclude theoretically that organizational justice, trust and commitment are deciding factors to increase

OCB.

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2. Review of literature and conceptual model

2.1. Organizational Citizenship Behavior

Organizational Citizenship Behavior (OCB) has been studied since the late 1970s. Over the last three

decades, research interest toward this behavior had increased substantially. Katz (1964) stated that based on

historical roots, OCB is a form of cooperative behavior, such as: (1) Willing to join and stay, willingness to

join and remain in a system (organization), (2) Dependable performance is a behavioral role that can be

used to be able to meet and even exceed the minimum criteria, qualitatively or quantitatively, (3)

Innovative and spontaneous behavior as a form of behavior outside the roles required by a job that person

concerned can resolve duties. According to the Organ (1988), OCB consists of five dimensions: (1) Assist

co-workers (altruism), (2) kindness (courtesy), (3) organization looking toward positive rather than the

negative (sportsmanship), (4) Awareness citizenship (civic virtue), (5) Meet or exceed the minimum

requirements the desired role of organization (conscientiousness).

However, research findings Hassan and Noor (2008) found that extra role behavior does not affect

significantly the distributive, procedural and informational justice. Based on the arguments outlined the

previous researches, the hypothesis is:

H1. Organizational Justice has significant positive effect toward OCB

2.2. Organizational Justice

Organizational justice theory was originally derived from the similarity theory developed by Adams in

1965. The theory states that fair treatment will appear if the ratio between results achieved with input he

gave for an exchange is considered balanced when compared to others (other referent) (Welbourne et al.,

1995). Theories of justice based on social exchange theory where individuals expect that they will get the

business exchange and fair remuneration of organization (Tyler, 1994).

Generally, researchers of organizational justice focuse on three main issues to assess the organizational

justice: outcomes, process and interpersonal interactions (Luthans, 1996). Judgment relating to the

reasonableness or justice of result allocation referred to distributive justice, in other words, distributive

justice refers to the justice toward what received (Greenberg, 1990). The second issue is the assessment of

organizational justice refers to process elements, and termed procedural justice. Procedural justice refers to

justice the process where decision is taken (Konovsky, 2000). Furthermore, the third issue is the assessment

of justice toward the interpersonal relationships referred as interactional justice. In this study, the use of

organizational justice theory refers to Greenberg (1987) that organizational justice is view of organization

members toward justice in distributing available resources. This theory is used as an employee outline to

evaluate the justice of three classifications events (Greenberg, 1990), namely: (1) distributive justice

(results they receive from organization), (2) procedural justice (formal policy or process in achieving

something that has been allocated by organization), (3) interactional justice (treatment taken by the decision

makers in organization interpersonal).

The findings of different studies presented by Konovsky and Pugh (1994) indicated that relationship

between distributive justices and trust in managers was insignificant, while procedural justice affected

significantly the trust in managers. In addition, Rezaiean et al. (2010) found the insignificant effect of

interactional justice toward trust in managers. Based on the theoretical and empirical findings of previous

research the hypothesis proposed in the study are:

H2. Organizational Justice has positive significant effect toward trust

Organizational justice has significant effect toward organizational commitment. Instead, Pare (2007); Noor

et al. (2011); Jamaluddin (2011) found that distributive justice and procedural justice did not affect

significantly the organizational commitment. Thus, the hypothesis is:

H3. Organizational Justice has significant positive effect toward commitment

Relationship between procedural justices with OCB through trust in managers is positive and significant.

But relationship between distributive justices and OCB through trust in managers is not significant

(Konovsky and Pugh, 1994).

H4. Trust in managers affect significantly as mediator the relationship between organizational justices and

OCB.

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Relationship between organizational justice and OCB through organizational commitment (Zeinabadia and

Salehi, 2011) is significant, but the findings (Moorman et al., 1993) had no significant effect.

H5. Organizational commitment affects significantly as mediator the relationship between organizational

justices and OCB.

2.3. Organizational Commitment

The key to an organizational success depends on the commitment of employees toward organization.

Commitment toward organization is more than just a formal membership; it encompasses the attitude to

organization and willingness to pursue all things for the sake of organization. Organizational commitment

is a situation where an employee in line with a particular organization as well as the goals and wishes to

maintain membership in organization (Robbins and Judge, 2007).

Organizational commitment is an attitude with various definitions and measuring range. Limitation toward

the definition of organizational commitment are: (1) a strong desire to become a member of a particular

organization, (2) the desire to suit with organization and (3) certain beliefs and acceptance to values and

goals of organization

Allen and Meyer (1990) argued that employees who have a commitment will work with full dedication,

making the employee has power and desire to give more responsibility to support welfare and success of

organization. Organizational commitment emerged as a result of psychological bond between employees

and organization. Robbins and Judge (2007) stated that organizational commitment consists of three

dimensions: (1) Affective commitment is emotional feelings toward organization and beliefs on the values

contained in organization, (2) Continuance commitment is the value of economic received, will staying in

organization when compared with leaving organization, (3) Normative commitment is a commitment to

stay in an organization for reasons of moral or ethical.

These results are supported by Chen and Francesco (2003); Cardona and Lagomarsino (2003); Gautam et

al. (2004) Kim Sangmook (2006) who found that affective and normative commitment affects positively

OCB, whereas continuance commitment affect insignificantly OCB. Thus the hypothesis is:

H6. Commitment has positive and significant effect toward OCB

2.4. Trust

Trust in managers is crucial to mobilize subordinate commitment in realizing a leader vision. Confidence

depends on the perceived expertise of the leader, but it also relies on the consistent leader in statements and

actions. Cummings and Bromiley (1996) states that belief originated from the word Trost (German)

meaning Comfort, trust is widely used on a personal level, between groups, organizations and communities.

Trust is the most important part of a bond. According to Blau (1964) trust is built in two ways, namely: (1)

perform duties on a regular basis (reply to the benefits received from the other party), and (2) the

development of exchanges in accordance with the passage of time. The trust is often expressed as a single

concept, but in a social or organizational context, trust has a systemic effect of structure, process, and

operational effectiveness. Trust is part of the norms and values of organization, and is expressed to behave

related to goal setting, risk taking, exchange of information, decision-making, performance management,

and collaboration.

Trust is the result of a process of very favorable social exchange. High level of trust held subordinate to

superiors within organization resulting higher subordinate OCB (Blau, 1964; Holmes, 1981). Various

measures are helful to create trust between the employer and employee, employee trust, supervisor with

organization. According to Blomqvist and Stahle (2000), trust can be created in a way to build credibility

(honesty, competence and inspiring) and trust in the integrity, character and ability to direct supervisor,

while confidence in organization is done by individual beliefs synergized with organization, and through

experience of positive behavior of people who believed (Robbins and Coulter, 2005).

Research conducted by Podsakoff et al. (1996) also supported statement that trust in manager’s effect was

not significant toward OCB dimension of altruism, conscientiousness, and civic virtue sportsmanship.

Different results are found by Robinson and Morrison (1995) that trust in managers significantly correlate

with OCB to civic virtue dimension. Based on the theories and arguments from previous research is:

H7. Trust in managers has significant positive effect toward OCB

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Based on the theoretical and empirical review, the relationship of each variable can be demonstrated by

research conceptual framework and research hypothesis in Figure 1.

3. Method

3.1. Sample

The population was all nurses stayed in Makassar City, namely 418 people. The sample was determined by

using the Slovin formula in Uma Sekaran (2000), as follows: n = 204.4 or 205 people (rounded). Data were

collected from a sample of 134 registered nurses in five hospitals in Makassar City that had acquiesced

to our request that they participate in this study. The sampling technique is proportionated random

sampling, selected in each Makassar City Hospital. The sampel was determined by drawing all

populations 5% precision level of 5%. A total of 205 questionnaires were distributed in different units in

the five hospitals; 134 usable questionnaires were returned.

3.2. Measures

Measurement of Organizational Justice variables based on equity in distribution of existing resources by

using organizational justice variables, cognitive evaluations conducted by nurses toward superiors using

procedural, distributive and interactional setting. The indicators measure the distributive and procedural

and interactional justice (Niehoff and Moorman, 1993).

Measurement variable trust in managers was adopted from Mahn Hee Yoon and Jaebom Suh (2003). It uses

nine indicators: Mastery of work, Good decisions, Experience, Reliable, Resolve conflicts, Supports,

spamming, Respect and Fair. Furthermore, organizational commitment is the level of trust and acceptance

of nurses toward organizational goals and the desire to remain within organization. This variable was

developed by Meyer and Allen, (1991) by using three indicators; affective, continuous and normative

commitment. Finally, OCB is a wise behavior (discretionary) addressed directly to improve the

effectiveness of hospital. These variables were developed from measurement of Organ, Podsakoff and

MacKenzie (2006), using five indicators: altruism, civic virtue, conscientiousness, courtesy, and

sportsmanship. The scale of measurement is a Likert scale. To measure attitudes / opinions of respondents,

this study used five Likert scale with following criteria: (1) Strongly agree scored of 5, (2) Agree score 4,

(3) Neutral score 3, (4) Disagree score 2, (5) Strongly Disagree score 1.

4. Results

There are five models indicating a direct relationship established in this research: (1) organizational justice

has positive and significant effect toward OCB, (2) organizational justice has positive and significant

effect toward trust in managers, (3) organizational justice has positive and significant effect toward

organizational commitment, (4) trust in managers has positive and significant effect toward OCB, and (5)

organizational commitment has positive and significant effect toward OCB. Based on the results of

statistical hypothesis test in Table 1, the direct effect of each variabel relationship shows positive and

significant correlation. Organizational justice has no positive and significant effect toward OCB as

indicated from p-value > 0.05. So the hypothesis that organizational justice has positive and significant

effect toward OCB is unacceptable or unsupported by empirical facts.

The effect of organizational justice toward trust in managers is significant, this is reflected from p-value

<0.000. Path coefficient is positive, with a value of 0,742 and it shows linear direction. So it can be

interpreted that the higher organizational Justice and the higher the nurse confidence in supervisor can be

accepted or supported by empirical facts. Similarly, there is a significant effect between organizational

justice on organizational commitment with p-value <0.000. Path coefficient is positive with a value of

0.680. The organizational commitment affects OCB. It can be seen from the p-value <0.000. The test result

is positive coefficient path with coefficient path of 0,395, this mean the higher organizational commitment

can improve OCB nurses. Trust in manager has significant effect on OCB with p-value <0.000. The path

coefficient test with a value of 0.352 is positive, meaning an increased trust in manager positively and

significantly enhances OCB Nurses in positive direction. The results of path coefficient validity test on

each path for direct effect are presented in Table 1.

In Table 2 shows path coefficient of indirect effect among the variables. Indirect effect on organizational

justice through trust in manager is positive and significant trust in manager with path coefficient of 0.352.

The result means that trust in manager mediates the effect of organizational justice on OCB nurse. The

effect of organizational commitment on OCB is significant so that organizational commitment is perfect

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mediating variable (complete mediation), the effect of organizational justice on OCB. These results

illustrate that organizatioanal commitment and trust in manager control plays an important role in OCB

nurse.

Testing the effect of organizational justice toward OCB suggests that high organizational justice tends to

increase Nurses OCB. Results of this study demonstrate that organizational justice has positive but

insignificant effect toward nurses OCB. The findings of this study support the claim (Katz, 1964) that

organization that able to give awards to employees is an organization that be able to motivate employees to

perform their duties properly. Therefore, employees are encouraged to bring extra role behavior. However,

if the award given to employees are not comparable with respect to other employees, this can lead to low

extra role behavior because of injustice.

The findings of this study do not support Pillai (1999) who states that employee wishes to display OCB due

to unfair treatment they received from organization. Results demonstrate that treatment of higher

organizational justice not directly and significantly increase Nurses OCB. But when mediated by trust in

managers or organizational commitment, OCB nurse higher. This means that organizational justice has no

significant direct effect toward OCB improvement, but effect of organizational justice toward

organizational commitment and OCB is higher when trust in managers higher.

Results of this study support organizational justice theory proposed by Greenberg (1987) on the importance

to understand the phenomenon of allocating rewards toward outcome obtained by hospital nurses, formal

policy or process in achieving something that has been allocated by hospital management and treatment

were taken by decision makers across personal within organization. Results of this study support the

previous study findings (Niehoff and Moorman, 1993; Hassan and Noor, 2008), that interactional justice

affect insignificantly OCB. The study also rejected the argument that employee wishes to demonstrate

OCB due to some organizational justice they received in workplace (Pillai et al., 1999; Robbins and

Coulter, 2005; Luthan, 2006).

5. Discussion

Organizational justice is a response to nurses feelings represented by fair or unfair treatment from

employers and hospitals in workplace. The nurse wishes to display OCB due to unfair treatment received

from organization. The findings of this study do not support Pillai (1999) who states that employee wishes

to display OCB due to unfair treatment they received from organization. Results denote that treatment of

higher organizational justice does not directly and significantly increase Nurses OCB. But when mediated

by trust in managers or organizational commitment, OCB nurse higher. This means that organizational

justice has no significant direct effect toward OCB improvement, but effect of organizational justice toward

organizational commitment and OCB nurse when trust in managers higher.

Organizational justice and trust in managers have a reciprocal relationship between the two. Individuals

have high confidence to superiors because organizations and employers give equal treatment to the

individual, and vice versa. (Rezaiean et al., 2010). Descriptive variables of trust in managers indicators

suggest that supervisor appreciation to nurse who worked well presents the highest score among the nine

measurement indicator trust in managers. Meanwhile, the lowest score is an indicator of nurse to explain

work. Based expectation nurse that supervisor observes the problems facing in work. Indicators leader

appreciation to nurses that working well was already good when used as a measure or indicator of variable

trust in managers, so it was to be maintained. The global employees view the organization justice, working

conditions, relationship between managers and co-workers, impact on organization commitment (Meyer

and Allen, 1991; Niehoff and Moorman, 1993). The test results proved that organizational justice has

positive and significant effect toward nurse organizational commitment at Hospitals in Makassar. The

conclusion that increased organizational justice can positively and significantly increase organizational

commitment can be supported by empirical facts. Results are consistent with theory of organizational

commitment proposed by Allen and Meyer (1990), that an employee who has a commitment will work with

full dedication, making the employee has the power and the desire to give more responsibility to support

the welfare and success of organization. The findings of this study support the social exchange theory

which states that an individual voluntarily provides benefits to others that led to the emergence of other

parties obligation to reciprocate by providing some benefit to the giver (Blau.,1964).

The research was conducted at hospital in Makassar, using nurses as respondents. This provides a limitation

in generalizing the findings of this study. Measurement of variables based on the perception that research

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conducted is determined by the memory of respondents (nurses) and assessment toward himself. It may

create bias in measurement. The empirical analysis conducted in this study used the survey data to analyze

relationship at one point in time (cross-sectional). While attitudes and behaviors is very dynamic, so to

analyze the attitudes and behaviors it needs longitudinal observation. Therefore, further research studies

needed to re-analyze the changing relationship between variables studied in this research.

6. Implications

This study provides implications for a more integrated model of the relationship between organizational

justice toward OCB by inserting trust in managers and organizational commitment as mediating variable,

where on previous researches examined separately. Organizational justice has insignificant direct effect

toward OCB, but the organizational justice affects OCB when there is high level trust in managers and

organizational commitment. Therefore, it can be concluded that high organizational justice has no

significant direct effect to increase Nurse OCB in positive direction, but with mediation of trust in

managers and organizational commitment, organizational justice significantly increases OCB. From the

two mediator variables, the leader confidence in nurses has important role to mediate the relationship

between organizational justice and OCB compared with organizational commitment.

This study provides practical implications toward nurses and management of Hospitals in Makassar, among

others, require a change in behavior and hospital management paradigm oriented toward better attitude and

professionalism. To this effect, nurses and hospital management are required to make changes in positive

direction toward organizational justice, trust in managers and organizational commitment to improve the

nurses performance through increased OCB. Improved treatment of organizational justice can be done by

nurses to increase high interactional justice, through honorable superior treatment toward decisions making

about nursing work and consistency in decision-making to all nurses.

7. Conclusion

Organizational justice does not significantly increase Nurses OCB. Trust in managers and organizational

commitment mediates the relationship between organizational justice and OCB. This means organizational

justice directly has insignificant effect increased OCB, but organizational justice affects OCB when

mediated by high trust in managers and organizational commitment. Therefore, it can be explained that

honorable superiors treatment directly unable to make changes to avoid behavior problems with co-

workers. But it could be achieved through a supervisor award to nurses who worked well and the nurse

emotional attachment toward hospital is high.

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Appendix:

Figure 1.Conceptual framework

Table 1. Hypothesis testing and path coefficient for PLS

No. Direct Influence Path

Coeficient p-value Empirical

Evidance

1. Org. Justice

OCB 0,189 0,089 Not

Significant

2. Org. Justice Trust in Manager 0,742 0,000 Significant

3. Org. Justice Org. Commitment 0,680 0,000 Significant

4. Org. Commitment OCB 0,395 0,000 Significant

5. Trust in Manager OCB 0,352 0,000 Significant

Table 2. Test for The Impact of Mediating Variable

No. Exogenus Mediation Endogenus Path

Coeficient

Nature

of

Mediation

Empirical

Evidance

1. Org. Justice

Trust in Manager

OCB 0,261

Complete

Mediation Significant

2. Org. Justice Org. Commitment OCB 0,269 Complete

Mediation

Significant

Organizational

Commitment

Organizational

Justice

OCB

Trust in Manager