The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction

In the era of fourth industrial revolution, remuneration management has become an important organizational strategy for achieving organizational objectives. The purpose of this study is to explore the influence of performance-based remuneration management on employee’s job satisfaction through the m...

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Main Authors: Mohd Ridwan Abd Razak,, Azman Ismail,
Format: Article
Language:English
Published: Penerbit Universiti Kebangsaan Malaysia 2018
Online Access:http://journalarticle.ukm.my/20170/1/26175-88575-1-PB.pdf
http://journalarticle.ukm.my/20170/
https://ejournal.ukm.my/pengurusan/issue/view/1093
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spelling my-ukm.journal.201702022-10-21T03:21:51Z http://journalarticle.ukm.my/20170/ The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction Mohd Ridwan Abd Razak, Azman Ismail, In the era of fourth industrial revolution, remuneration management has become an important organizational strategy for achieving organizational objectives. The purpose of this study is to explore the influence of performance-based remuneration management on employee’s job satisfaction through the mediating role of procedural justice. A cross-sectional technique was employed to collect primary data from 232 employees of private higher educational institutions in Peninsular Malaysia who experienced the implementation of performance-based remuneration. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used in the data analysis. The outcomes displayed three important findings: first, the relationship between management of performance-based remuneration and procedural justice was significant. Second, the relationship between management of performance-based remuneration, procedural justice and intrinsic job satisfaction was significant. Third, the relationship between management of performance-based remuneration, procedural justice and extrinsic job satisfaction was significant. Statistically, this result confirms that influence of management of performance-based remuneration on job satisfaction is indirectly affected by procedural justice in the studied organizations. This study provides empirical evidence on the importance of procedural justice in managing performance-based remuneration. It is an important input to enhancing employee’s job satisfaction in the organization. Further, the study concludes with a discussion on the contributions, limitations and suggestions for future research. Penerbit Universiti Kebangsaan Malaysia 2018 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/20170/1/26175-88575-1-PB.pdf Mohd Ridwan Abd Razak, and Azman Ismail, (2018) The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction. Jurnal Pengurusan, 52 . pp. 85-101. ISSN 0127-2713 https://ejournal.ukm.my/pengurusan/issue/view/1093
institution Universiti Kebangsaan Malaysia
building Tun Sri Lanang Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Kebangsaan Malaysia
content_source UKM Journal Article Repository
url_provider http://journalarticle.ukm.my/
language English
description In the era of fourth industrial revolution, remuneration management has become an important organizational strategy for achieving organizational objectives. The purpose of this study is to explore the influence of performance-based remuneration management on employee’s job satisfaction through the mediating role of procedural justice. A cross-sectional technique was employed to collect primary data from 232 employees of private higher educational institutions in Peninsular Malaysia who experienced the implementation of performance-based remuneration. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used in the data analysis. The outcomes displayed three important findings: first, the relationship between management of performance-based remuneration and procedural justice was significant. Second, the relationship between management of performance-based remuneration, procedural justice and intrinsic job satisfaction was significant. Third, the relationship between management of performance-based remuneration, procedural justice and extrinsic job satisfaction was significant. Statistically, this result confirms that influence of management of performance-based remuneration on job satisfaction is indirectly affected by procedural justice in the studied organizations. This study provides empirical evidence on the importance of procedural justice in managing performance-based remuneration. It is an important input to enhancing employee’s job satisfaction in the organization. Further, the study concludes with a discussion on the contributions, limitations and suggestions for future research.
format Article
author Mohd Ridwan Abd Razak,
Azman Ismail,
spellingShingle Mohd Ridwan Abd Razak,
Azman Ismail,
The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
author_facet Mohd Ridwan Abd Razak,
Azman Ismail,
author_sort Mohd Ridwan Abd Razak,
title The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_short The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_full The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_fullStr The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_full_unstemmed The mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
title_sort mediating effects of procedural justice on the relationship between performance-based remuneration management and job satisfaction
publisher Penerbit Universiti Kebangsaan Malaysia
publishDate 2018
url http://journalarticle.ukm.my/20170/1/26175-88575-1-PB.pdf
http://journalarticle.ukm.my/20170/
https://ejournal.ukm.my/pengurusan/issue/view/1093
_version_ 1748181776432365568
score 13.211869