The Moderating Effect of Perceived Alternative Job Opportunities between Organizational Justice and Job Satisfaction: Evidence from Developing Countries

Abstract

Purpose – This study examines the relationship between organizational justice and employee job satisfaction and the extent of its moderation by perceived alternative job opportunities. Research design, data, and methodology – This is a cross-sectional study utilizing survey questionnaire data from 220 bank employees, which included scales measuring organizational justice, job satisfaction, and perceived alternative job opportunities. Results – The data is analyzed using correlation and hierarchical regression. Results demonstrated that organizational justice has a direct positive impact on employee job satisfaction further, distributive justice explains more variance in job satisfaction, followed by procedural justice and interactive justice. Perceived alternative job opportunities moderate the relationship between organizational justice and job satisfaction. Conclusions – Generally, organizational justice increases bank employees’ job satisfaction; however, when they perceived more job opportunities, their job dissatisfaction increased notwithstanding fairness. Therefore, perceived job opportunities moderate the relationship between organizational justice and job satisfaction. Retaining skilled employees has become difficult, especially when there is market demand for skilled workers. Human resource (HR) managers should consider market situations before formulating policies; otherwise, they may lose the competitive advantage of skilled employees and workers.