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Relationship between Performance Based Pay, Interactional Justice and Job Satisfaction: A Mediating Model Approach
Journal article   Open access

Relationship between Performance Based Pay, Interactional Justice and Job Satisfaction: A Mediating Model Approach

Azman Ismail, Hasan Al-Banna Mohamed, Norashikin Sahol Hamid, Ahmad Zaidi Sulaiman, Antonia Girardi and Muhammad Madi Bin Abdullah
International journal of business and management, Vol.6(11), 170
2011
DOI: https://doi.org/10.5539/ijbm.v6n11p170
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CC BY V4.0,  Open Access

Abstract

This study was conducted to examine the influence of interactional justice in the relationship between performance based pay and job satisfaction using 334 usable questionnaires gathered from employees who work in Malaysian private institutions of higher learning (PRIVATE INSTITUTION), Malaysia. Exploratory factor analysis confirmed that the measurement scales used in this study met the acceptable standards of validity and reliability analyses. Further, the outcomes of Stepwise Regression analysis showed two important findings: First, performance based pay (i.e., participation in pay systems and adequacy of pay) significantly correlated with job satisfaction. Second, linking performance based pay (i.e., participation in pay systems and adequacy of pay) to interactional justice significantly correlated with job satisfaction. Statistically, this result demonstrates that interactional justice does act as a partial mediating variable in the relationship between performances based pays and job satisfaction in the studied organizations. In addition, discussion, implications and conclusion are elaborated.

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