Perception of Justice and Commitment: Cross-Sectional Survey of Outsourcing Employees in Banking Sector, Bandung, Indonesia

Abstract

This research aimed to see how organizational justice and organizational commitment affected employee satisfaction. The authors examined outsourcing workers in banking companies to explore the dimensions of organizational justice on organizational commitment and employee job satisfaction. Employees of four banking organizations in Bandung, West Java, made up the research population, sampled using simple random sampling with as many as 200 participants. The data was analyzed using a component-based structural equation modeling (SEM). The findings revealed that organizational justice impacted both organizational commitment and employee happiness at the same time. However, when looked at more closely, organizational justice had varied effects on organizational commitment and employee happiness. For example, organizational justice substantially impacted emotional commitment but had little effect on normative commitment. Furthermore, distributive justice had little effect on emotional commitment, although procedural justice and interaction justice significantly impacted it. This study is a contribution to clarify that top managers of the company must provide organizational justice to employees of outsourcing which is expected to improve organizational commitment that can increase employee satisfaction. More research is needed to incorporate several characteristics that impact employee happiness