Effects of Organizational Justice and Organizational Citizenship Behavior on Employee Turnover Intention

Abstract

Employee turnover is an on-going concern among researchers due to its negative impacts towards organizations. Given the rising rate of employee turnover in a utility company in Malaysia, some attention should be paid on the factors that might influence the employees to leave the organization. Underpinned by social exchange theory, the study was aimed to identify the relationship between organizational justice, organizational citizenship behaviour, and turnover intention. Besides, this study aims to test the mediation effects in the research framework. Research hypotheses are tested by conducting a cross-sectional survey at the utility company located in Klang Valley. Using convenience sampling method, 750 employees were involved which yielded 391 usable responses. Partial least squares structural equation modeling technique was applied to test the proposed research hypotheses. The results have confirmed that distributive justice was significantly related with the turnover intentions of the staff, whereas the other three dimensions of organizational justice were not in the hypothesized negative direction. The results also confirmed the mediatory effect of organizational citizenship behaviour directed at individuals on the relationships between procedural justice and turnover intention. This study provides useful insights for managers and HR practitioners to take remedial measures to retain the employees for long-term.