fyp

University of Engineering and Technology, Lahore

Final Year Project

Impact of Organizational Justice on Organizational Trust with the mediating role

of Job Satisfaction

A study on private Banking sector of Pakistan

Thesis Presented to


In partial fulfillment

Of the requirement for the degree of

Bachelor of Business Administration

By

Mr. Bilal Waheed BBA-FAL-12-135

Mr. Bilal Sarwar BBA-FAL-12-129

Miss. Hafsa Khalid BBA-FAL-12-096

Miss. Irsa Yousaf BBA-FAL-12-143

Miss. Samra Mohsin BBA-FAL-12-025

Miss. Shafaq Zaheer BBA-FAL-12-099

Miss. Sana Akhtar BBA-FAL-12-024

Spring, 2016

Final Approval

1


Final Year Project

This thesis titled

Impact of Organizational Justice on Organizational Trust with the mediating role

of Job Satisfaction

A study on private Banking sector of Pakistan

By








Has been approved

For University of Engineering and Technology, Lahore

External Examiner:

Supervisor:

Advisor:

Director IB&M:

2


Final Year Project

DECLARATION

We (Mr. Bilal Waheed BBA-FAL12-135, Mr. Bilal Sarwar BBA-FAL12-129, Miss. Hafsa Khalid BBA-FAL12-096, Miss. Irsa Yousaf BBA-FAL12-143, Miss. Samra Mohsin BBA-FAL12-025, Miss Shafaq Zaheer BBA-FAL12-099 and Miss. Sana Akhtar BBA-FAL12-024) hereby declare that we have produced the work presented in this thesis, during the schedule period of the study. We also declare we have not taken any material from any other source except refer to whatever due that amount of plagiarism is within acceptable range. If a violation of HEC rules on research has occurred in this thesis, we shall be liable to punishable action under the plagiarism rules of HEC.

Date:

<<Date of Thesis Submission>>

Signature of Students:








3


Final Year Project

CERTIFICATE

It is certified that Mr. Bilal Waheed BBA-FAL12-135, Mr. Bilal Sarwar BBA-FAL12-129, Miss. Hafsa Khalid BBA-FAL12-096, Miss. Irsa Yousaf BBA-FAL12-143, Miss. Samra Mohsin BBA-FAL12-025, Miss Shafaq Zaheer BBA-FAL12-099 and Miss. Sana Akhtar BBA-FAL12-024 have carried out all the work related to the thesis under my supervision at Institute of Business and Management. University of Engineering and Technology, Lahore and the work fulfills the requirements for award of BBA Degree.

Date:

<<Date of Thesis Submission>>

Supervisor:

Mr. Aftab Shaukat

(Lecturer)

Director:

4


Final Year Project

DEDICATION

We (Mr. Bilal Waheed BBA-FAL12-135, Mr. Bilal Sarwar BBA-FAL12-129, Miss. Hafsa Khalid BBA-FAL12-096, Miss. Irsa Yousaf BBA-FAL12-143, Miss. Samra Mohsin BBA-FAL12-025, Miss Shafaq Zaheer BBA-FAL12-099 and Miss. Sana Akhtar BBA-FAL12-024) dedicate our dissertation work to our supervisor Mr. Aftab Shaukat and advisor Miss. Rizwana Hameed, who has assisted, us in carrying our project work and helped us throughout whenever we needed their assistance, we dedicate our dissertation to our respected Director and other faculty members who has helped us and made correction in our work when needed. We will always appreciate what they have done.








5


Final Year Project

ACKNOWLEDGEMENT

We (Mr. Bilal Waheed BBA-FAL12-135, Mr. Bilal Sarwar BBA-FAL12-129, Miss. Hafsa Khalid BBA-FAL12-096, Miss. Irsa Yousaf BBA-FAL12-143, Miss. Samra Mohsin BBA-FAL12-025, Miss Shafaq Zaheer BBA-FAL12-099 and Miss. Sana Akhtar BBA-FAL12-024) wish to thanks first of all Allah Almighty who granted us health and capability to fulfill this research and then we would like to thanks Mr. Aftab Shaukat, our supervisor and Miss. Rizwana Hameed our head supervisor for their countless efforts they put to help us complete this project and their precious time that they gave us for finishing our project successfully, we are very thankful for their encouragement and peace during the whole process.

We would also like to acknowledge and thanks our department and university for allowance to conduct this research and for the assistance provided when required and we would also like to thanks all of our faculty teachers whose guidance and feedback helped us a lot in improving and completing our project.

6


Final Year Project

ABSTRACT

This study impact of Organizational Justice on Organizational Trust with mediating role of Job Satisfaction in the private banking sector of Pakistan has been done to assess the impact of organizational justice on the organizational trust along with a mediator Job Satisfaction. The reason behind this study was to check the direct relationship between Organizational Justice (Independent Variable) and Organizational Trust (Dependent Variable) through a mediator Job Satisfaction.

The methodology used for the research information was a convenience sampling because of the time and cost constraints. A structured questionnaire was used and floated among different branches of private banking sector located in Lahore, Pakistan like Habib Bank Limited (HBL), United Bank Limited (UBL), Allied Bank Limited (ABL) and Muslim Commercial Bank (MCB). The study population was employees and the study population was 200-250. The responses obtained and used for the data analysis were investigate through SPSS.

The study proved that the independent variable (Organizational Justice) has significance impact on the dependent variable (Organizational Trust) and also the mediator has significant impact on relationship between the dependent variable and independent variable.

Keyword: Organizational Justice, Organizational Trust, Job Satisfaction

7

TABLE OF CONTENT

Chapter 1

1.1 Introduction ………………………………………………………………………

Chapter 2

2.1 Literature Review …………………………………………………………………

2.1.1 Organizational justice …………………………………………………………...

2.1.2 Job Satisfaction ………………………………………………………………….

2.1.3 Organizational Trust …………………………………………………………….

2.2 Definitions …………………………………………………………………………

2.2.1 Organizational Justice …………………………………………………………..

2.2.2 Job Satisfaction ………………………………………………………………….

2.2.3 Organizational Trust …………………………………………………………….

2.3 Problem statement …………………………………………………………………

2.4 Objective of the Study …………………………………………………………….

2.5 Research Framework ………………………………………………………………

2.6 Hypothesis …………………………………………………………………………

Chapter 3

3.1 Methodology ………………………………………………………………………

3.1.1 Research …………………………………………………………………………

3.1.2 Research Design …………………………………………………………………

3.1.2.1 Instrumental Design …………………………………………………………..

3.1.2.2 Types of study …………………………………………………………………

3.1.3 Time setting ……………………………………………………………………...

3.1.4 Study Population …………………………………………………………………

3.1.5 Sampling Technique ……………………………………………………………..

8

3.2 Sample and procedure ……………………………………………………………..

3.3 Data Collection ……………………………………………………………………

3.4 Limitation ………………………………………………………………………….

3.5 Coding of Data …………………………………………………………………….

Chapter 4

4.1 Data Analysis and results ………..………………………………………………..

4.1.1 Reliability analysis ………………………………………………………………

4.1.2 Frequency analysis ………………………………………………………………

4.1.3 Descriptive analysis …………………………………………………………….

4.1.4 Regression analysis ……………………………………………………………..

4.1.4.1 Organizational justice and organizational trust ……………………………….

4.1.4.2 Job satisfaction and organizational trust ………………………………………

4.1.4.3 Organizational justice and job satisfaction ……………………………………

4.1.4.4 Coefficients …………………………………………………………………...

Chapter 5

5.1 Questionnaire sample …………………………………………………………….

5.2 Introduction ………………………………………………………………………

5.3 Objectives of research …………………………………………………………….

5.3.1 Questionnaire …………………………………………………………………..

Chapter 6

6.1 Results ……………………………………………………………………………

Chapter 7

7.1 Conclusion ……………………………………………………………………….

7.1.1 Recommendations ……………………………………………………………...

7.1.2 Recommendations for future research direction ……………………………….

9

References

10

LIST OF TABLES

Table 4.1 Reliability Statistics ………………………………………………….

4.1.2 Frequency analysis ………………………………………………………..

Table 4.2 Gender of responder …………………………………………………

Table 4.3 Age of responder …………………………………………………….

Table 4.4 Income of responder ………………………………………………….

Table 4.5 Descriptive Statistics …………………………………………………

Table 4.6 Model summary ………………………………………………………

Table 4.7 ANOVA ………………………………………………………………

Table 4.8 Model summary ………………………………………………………

Table 4.9 ANOVA ………………………………………………………………

Table 4.10 Model summary ……………………………………………………..

Table 4.11 ANOVA …………………………………………………………….

Table 4.12 Model summary ……………………………………………………..

Table 4.13 ANOVA ……………………………………………………………..

11

LIST OF FIGURES

Figure 4.1 Gender of responder ………………………………………………….

Figure 4.2 Age of responder ………………………………………………………

Figure 4.3 Income of responder …………………………………………………..

12

LIST OF ABBREVIATIONS

Full Forms Abbreviations

Organizational Justice OJ

Job Satisfaction JS

Organizational Trust OT

13

CHAPTER NO 1

1.1 INTRODUCTION:

Organizations are social systems where human resources are the most important factors for

effectiveness and efficiency. Organizations need effective managers and employees to achieve

their objectives. Organizations cannot succeed without their personnel efforts and commitment

(Rad &Yarmohammadian, 2006).

Employee job satisfaction is considered to be key variable that impact on organizational justice

and organizational trust. In highly competitive global businesses must strive to identify factors

that influence the organization performance and job satisfaction of employees such factors are

organizational justice and organizational trust; which describes the individual’s perception of the

fairness of treatment received from an organization and their behavioral reactions to such

perceptions (Fernandes and Awamleh, 2006). Employees were more satisfied when they felt they

were rewarded fairly for the work they have done by making sure these rewards were for genuine

contributions to the organization and consistent with the reward policies.

The reward could include a variety of benefits and perquisites other than monetary gains.

Employees with higher job satisfaction were important as they believed that the organization

would be of tremendous future in the long run and care about the quality of their work; hence

they were more committed to the organization, have higher retention rates and tend to have

higher productivity (Fatt, Khin and Heng 2010).

According to Hoy and Tarter (2004), organizational justice is defined as ‘trust affects

organizational justice both positively and negatively. There is no justice without trust.’

Palaiologos, Papazekos and Panayotopoulou (2011), defined organizational justice as

‘organizational justice namely procedural, distributive and interactional justice is connected to

various elements of performance appraisal

14

Smith (2005) defined organizational trust as ‘Organizational trust on employees of an accountin

department by the managers is very important to achieve.’ Pucetaite, Lamsa and Novelskaite

(2010), defined organizational trust as ‘Organizational trust and various other management

ethical tools are related to each other.

Sutherland (2013) defined Job satisfaction as ‘Job satisfaction is different in different employment

status group which are not treated as double variables. Self-employed and paid workers are

positively affected by Job satisfaction.’ Linz (2003), described Job satisfaction as ‘Job satisfaction

increases labour productivity and decreases labour turnover and vice versa. Job satisfaction can be

developed through reward system, different training programs in order to produce effective outcome.’

.Basically, our aim is to examine the effect of Organizational Justice on Organizational Trust, the effect of

Organizational Justice on Job Satisfaction and the effect of Job Satisfaction on Organizational Trust. On

the basis of above literature review following is the proposed model which shows the effect of

Organizational Justice on Organizational Trust, Organizational Justice on Job Satisfaction and

Organizational Trust affected by Job Satisfaction.

15

CHAPTER NO 2

2.1 LITERATURE REVIEW:

2.1.1 Organizational Justice:

According to Hoy and Tarter (2004), organizational justice is defined as ‘trust affects

organizational justice both positively and negatively. There is no justice without trust.’

Palaiologos, Papazekos and Panayotopoulou (2011), defined organizational justice as

‘organizational justice namely procedural, distributive and interactional justice is connected to

various elements of performance appraisal. Organizational justice also strongly relates elements

of satisfaction.’ McDowall and Fletcher (2004), describes organizational justice as ‘Procedural

justice effects on UK global fairness perception and attitudinal measures. Valuable framework is

proved by procedural justice’. Crow, Lee and Joo (2012), defined organizational justice as

‘organizational justice influences on organizational commitment and job satisfaction among

South Korean police officers.’

Dimensions of organizational justice:

Procedural justice

The idea of fairness in the processes that resolve disputes and allocate resources. One aspect

of procedural justice is related to discussions of the administration of justice and legal

proceedings.

Distributive justice

16

Concerns the nature of a socially just allocation of goods in a society. A society in which

incidental inequalities in outcome do not arise would be considered a society guided by the

principles of distributive justice.

Interactional justice

Defined by sociologist John R. Schermerhorn as the "...degree to which the people affected by

decision are treated by dignity and respect. (John R. Schermerhorn, Organizational behavior)

The theory focuses on the interpersonal treatment people receive when procedures are

implemented.

2.1.2 Job Satisfaction

Sutherland (2013) defined Job satisfaction as ‘Job satisfaction is different in different

employment status group which are not treated as double variables. Self-employed and paid

workers are positively affected by Job satisfaction.’ Linz (2003), described Job satisfaction as

‘Job satisfaction increases laborproductivity and decreases labor turnover and vice versa. Job

satisfaction can be developed through reward system, different training programs in order to

produce effective outcome.’ Droussiotis and Austin (2007) describe Job satisfaction as ‘Job

satisfaction in Cyprus organization influences by self-fulfilment, independence and Job

environment. It assumes that Job satisfaction is higher in private sectors. It is useful to

employees that their manager ensures high satisfaction with their job.’

Dimensions of job satisfaction

There are some variables that effect the job satisfaction (Lee andWilkins, 2011;Shen, 2010)

1. Empowerment and participation

2. Working conditions

3. Reward and recognition

4. Teamwork

17

5. Training and individual development

Empowerment and participation:

Empowerment allows employees to do their jobs independently and also help employees to

achieve their goals by participating in decision making process (Ampofo-Boateng et al., 1997)

Working conditions:

Some physical working conditions such as ventilation lightening and temperature comfortable

workplace better and cleaner workspace and bigger office space influence employee job

satisfaction (Ceylan,1998) when these factors provided by the firm employee satisfaction will be

increased (De Troyer, 2000)

Reward and recognition:

According to Pascoe et al. (2002) Systems of reward and cognition should be developed by the

firm to increase employee job satisfaction. Lack of reward and recognition reduces the employee

job satisfaction

Teamwork:

Motivation, employee performance and self efficacy of employees could be increased by

effective teamwork. Bonding with team member’s employee autonomy is the result of teamwork.

According to Rahman and Bullock’s (2005) team has positive effect on employee morale.

Training and individual development:

Individual development and abilities for more efficient could be increased by providing

opportunities of employee training (Jun et al., 2006).

2.1.3 Organizational Trust

18

Axelrod, (1984) risk should be assumed or not or whether to b trusted or not many authors have

discussed that trustee will judge by his trustworthiness through personal intention who attributes

should be mentioned in a relation to trust the person is technically competent he is morally

responsible or not (Barber, 1983, p.165). model of trust with two types of trust cognitive and

affective trust was first purposed by Mcallister(1995).calculus based trust and rational based trust

were distinguished whether risk is assumed are simply evaluated or whether the trustees

intention are also be considered (Mcallister,1995,Rousseau et al. 1998).

Smith (2005), defined organizational trust as ‘Organizational trust on employees of an

accounting department by the managers is very important to achieve.’ Pucetaite, Lamsa and

Novelskaite (2010), defined organizational trust as ‘Organizational trust and various other

management ethical tools are related to each other. Organizational trust affects level of

satisfaction or employees and develops a positive perception. According to Parra, Nalda and

Perles (2011) organizational trust is defined as ‘Developing organizational trust on employees

and other human is very important as they feel free to make choices and they should be included

while making a decision as they are the main asset of a company. According to Agarwal (2013),

organizational trust is defined as ‘In order to have strong positive public relations organizational

trust plays a vital role.’

Dimensions of organizational trust

Competence

The ability to do something successfully or efficiently.

Integrity

The quality of being honest and having strong moral principles.

Consistency

Consistent behaviour or treatment.

Benevolence

The quality of being well meaning; kindness.

19

Openness

Collaborative or cooperative management and decision-making rather than a central authority.

2.2 DEFINITIONS:

2.2.1 Organizational Justice

Organizational Justice is essentially the perception of fairness and the reaction to those

perceptions in the organizational context (Greenberg, 1987).

2.2.2 Job Satisfaction

Job satisfaction focuses on the role of the employee in the workplace. Thus he defines job

satisfaction as affective orientations on the part of individuals toward work roles wich they are

presently occupying (Vroom, 1964).

2.2.3 Organizational Trust

The presence of trust in the workplace is essential to organizational performance and

competitiveness in an increasingly global economy (Lamsa & Pucetaite, 2006).

2.3 PROBLEM STATEMENT:

20

Assessing the impact of Organizational Justice on Organizational Trust with mediating role of

Job Satisfaction

2.4 OBJECTIVES OF THE STUDY:

To study the impact of organizational justice on job satisfaction

To study the impact of job satisfactions on organizational trust

To study the impact of organizational justice on organizational trust

To study whether job satisfaction mediates the relationship between organizational justice

and organizational trust or not

2.5 RESEARCH FRAMEWORK:

21Procedural Justice

Distributive Justice

Interactional Justice

Empowerment

Working conditions

Reward recognition

Teamwork

TTTTraining

Job Satisfaction

Competency Integrity Consistency Benevolance Opennes

2.6 HYPOTHESIS:

Hypothesis No 1:

Relationship between Organizational Justice and Organizational Trust

Organizational Justice and Organizational trust in any Organization is very important to gain

employees loyalty. Management Control System (MCS) of an organization is based on the role

of organizational justice and employees trust. The people who conducted this research their

purpose was to check that whether there is a connection between organizational justice and

organizational trust or not. According to the purposed theory employees trust depends on

procedural and distributive justice. If managers gain Sharing Plan is fair and just than employees

trust on managers will increase. If organizational trust in employee’s perception is positive and

high than employees turnover rate will be reduced. To check this issue they organize a survey,

the outcome came from the inspection illustrates that if gain Sharing Plan is fair than it will

positively affect the employees perception. The most important restraint of the study is that if

there is no trust in the organization than employee’s turnover intention will be high. Overall the

result shows that organizational justice of Management Control System (MCS) has positive and

negative effect on employee’s attitude and perception. If it is positively linked than it leads

success for Management Control System (MCS). On the other hand if it is negatively linked then

there will be failure of the Management Control System (MCS).

Organizational Justice has significant impact on Organizational Trust

22

Organizational Justice

Organizational Trust

Hypothesis No 2:

Relationship between Organizational Justice and Job Satisfaction

Organizational Justice has a positive effect on satisfaction of employees which in turn increase

employee’s job satisfaction level. The purpose of this research was to check that is there a

relationship between organizational justice and job satisfaction. According to the study both

procedural justice and distributive justice affects the employee’sbehaviour positively. The main

point of this study is to help Casino management to check employee’s ethical behaviour for the

sake of benefit to the industry. To fulfil this purpose a questionnaire was designed and was

distributed among 37 Casino employees working in diverse departments. The outcome came

from the inspection illustrates that job satisfaction of Casino employees is positively affected by

procedural and distributive justice. But distributive is slightly strong motivator for job

satisfaction. This research suggests that Casino employee’s ethical behaviour is motivated by

both distributive and procedural justice. On the other this study shows that distributive justice

plays a significant role in developing ethical behaviour of Casino employees which in turns

develop a positive perception and leads to job satisfaction.

Organizational Justice has significant impact on Job Satisfaction

Hypothesis No 3:

Relationship between Job Satisfaction and Organizational Trust

Job satisfaction is directly linked with the trust. Job satisfied leader’s produces maximum

outcome through trust developed by Job satisfaction. The research was conducted to check

whether Job satisfaction effect the organizational trust. According to the study empowerment and

23

job satisfaction in leaders motivate their follower who in turns gets a positive impression of trust

through them. The study was also checked through a survey in which questionnaire was designed

and was distributed among 150 operators of Australian call centers and they were told that their

performance would be rated through their response by their supervisor to add as a part of study.

109 questionnaire responses were selected for further analysis. Another survey shows that Job

satisfied leaders positively motivate their workers which show a strong positive affect of

transformational leadership.

Job Satisfaction has significant impact on Organizational Trust

Hypothesis No 4:

Job Satisfaction mediates the relationship between Organizational Justice and

Organizational Trust

24

CHAPTER NO 3

3.1 METHODOLOGY:

This chapter shows the research methodology used for researching the impact of Organizational

Justice on Organizational Trust with mediating role of Job Satisfaction. Research Methodology

used for the research as follows:

3.1.1 Research:

The major reason is to find out the impact of Organizational Justice on Organizational Trust;

Where Job Satisfaction is playing the role of mediator, in the private banking sector of Pakistan.

The main reason of study was the purpose of research. The study conducted was correlation

which is used to measure the relationship among different variables. Study has been conducted in

actual environment and there has been no change in the environment by the researchers. Unit of

analysis of this study is the employees of the Private banking sector of Pakistan.

3.1.2 Research Design:

3.1.2.1 Instrumental Design:

We have used questionnaire for data collection in our study. Total questions were 15 out of

these five were related to Organizational Justice, Five were related to Job Satisfaction and fve

were related to organizational Trust.

3.1.2.2 Types of study:

This type of study is correlation as this explores the relationship between the variables “rules

out” the alternative variables that play role in between these variables.

3.1.3 Time Setting:

25

The study setting is non-contrived, because interference is minimum because it has been done in

actual environment.

Study was also cross sectional study because data was only collected once from the population.

3.1.4 Study Population:

Study population was the employees of private banking sector of Lahore Pakistan.

3.1.5 Sampling Technique:

Sampling technique was random sampling where we selected a sample from a population.

3.2 Sample and Procedure:

The instrument used was a structured questionnaire, with close ended questions. Research was a

quantative study because statistical test application can be done. Sample size was 200-250.

3.3 Data Collection:

The test used in this study included Frequency Analysis, Reliability Analysis, Correlation,

Regression Analysis and Descriptive Statistics.

3.4 Limitations:

The research was manly conducted in Lahore which is highlighting the convenience sampling.

Due to constraints of time and budget we had to limit within the boundaries of Lahore.

3.5 Coding of Data

The table given below shows the codes that have been used to generate the result of study for

items of variables.

Table 1-Coding (Likert Scale) used for data

Very

Dissatisfied

Dissatisfied Neither satisfied

nor dissatisfied

Satisfied Very satisfied

1 2 3 4 5

26

Table given below indicates the coding of the variables that have been used in the software and

document for study

Table 2-List of codes used for variables in software

`

Please mark the

appropriate choices in

boxes (according to

your level of job

satisfaction)

Very

Dissatisfied

1

Dissatisfied

2

Neither

satisfied

nor dissatisfied

3

Satisfied

4

Very

satisfied

5

JS1

1

The physical

conditions in

which you work.

JS2

2

Freedom to choose

your own working

methods.

JS33

Your fellow

workers.

JS4

4

The recognition

you get for good

work.

JS55

Your immediate

manager.

Please mark the

appropriate

choices (according

to organizational

justice).

Strongly

disagree

1

Disagree

2

Neutral

3

Agree

4

Strongly

agree

5

OJ6 6 My work schedule

27

is fair.

OJ77

I think that my

level of pay is fair.

OJ8

8

I consider my

work load to be

quite fair.

OJ9 9 Overall the

rewards I receive

here quite fair.

OJ10 10 Outside pressure

does not

impudence

performance

evaluations

Please mark the

appropriate

choices (according

to organizational

trust).

Strongly

disagree

1

Disagree

2

Neutral

3

Agree

4

Strongly

agree

5

OT11 11 There is

atmosphere for

honest cooperation

among employees.

OT12 12 Clear expectation

connected with

results and aims

from all employees.

OT13 13 Employees are

willing to share

knowledge.

OT14 14 Employees openly

admit and take

28

responsibility for

their mistakes.

OT15 15 Employees avoid

participating in

gossip and unfair

criticism of others.

29

CHAPTER NO: 4

4.1 DATA ANALYSIS AND RESULTS

4.1.1 Reliability Analysis

This measures the overall consistency of the items that are used to define a scale. As a result, we

are given sample size, number of items and reliability coefficients. Model- Alpha (Cronbach) is

the most popular. A measure is said to have a high reliability if it produces similar results under consistent

conditions. And It should be greater than 0.7. It does not include the questions which are deleted or eliminated

by individual factor analyses

Table 4.1

Reliability Statistics

Reliability Statistics

Cronbach's

Alpha

N of Items

.808 16

4.1.2 Frequency Analysis:

Table 4.2

Gender of Responder

30

Table 4.3

Age of Responder

Table 4.4

Income of Responder

Figure 4.1

Gender of Responder

31

Figure 4.2

Age of Responder

32

Figure 4.3

Income of Responder

33

4.1.3 Descriptive Analysis

Table 4.5

Descriptive Statistics

Statistics

OJ JS OT

NValid 250 250 250

Missing 3 3 3

Mean 3.3048 3.4616 3.4133

Median 3.3000 3.6000 3.3333

Mode 2.80a 3.60 3.33a

Std. Deviation .70913 .56530 .78291

Variance .503 .320 .613

a. Multiple modes exist. The smallest value is shown

Evaluating mean median mode and standard deviation:

Mean, median, and mode are three kinds of "averages". There are many "averages" in statistics,

but these are, the three most common. The "mean" is the "average" you're used to, where you

add up all the numbers and then divide by the number of numbers. The "median" is the "middle"

value in the list of numbers. To find the median, your numbers have to be listed in numerical

order, so you may have to rewrite your list first. When the totals of the list are odd, the median is

the middle entry in the list after sorting the list into increasing order. When the totals of the list

34

are even, the median is equal to the sum of the two middle (after sorting the list into increasing

order) numbers divided by two. The "mode" is the value that occurs most often. Standard

deviation measure the amount of dispersion of variable. A low standard deviation indicates that

the data points tend to be very close to the mean and a high standard deviation indicates that the

data points are spread out over a large range of values.

4.1.4 Regression Analysis:

4.1.4.1 Organizational Justice and Organizational Trust

Table 4.6

Model Summary

Model Summaryb

Model R R Square Adjusted R

Square

Std. Error of the

Estimate

Durbin-Watson

1 .520a .270 .267 .67024 1.553

a. Predictors: (Constant), OJ

b. Dependent Variable: OT

Durbin Watson test, its value should be between 1.5 to 2.5. It the test statistic used to detect the

presence of autocorrelation. And autocorrelation is a relationship between values separated from

each other by a given time lag, it includes all those variables which are not part of our study but

they do have relation with our independent variable (OJ) variable. The Durbin–Watson statistic

indicates the presence of serial correlation of the residuals. In our study the value our D.V and

I.V has passed Durbin Watson test. In our study the Durbin Watson value is 1.553 which is

between 1.5 to 2.5 which is good sign. And the standard deviation is 0.67, close to 1 which is

also a good thing as it shows how much values of variables are deviating from each other.

35

http://en.wikipedia.org/wiki/Autocorrelation

http://en.wikipedia.org/wiki/Test_statistic

Adjusted R square, often called the coefficient of determination, and is defined as the ratio of the

sum of squares explained by a regression model and the "total" sum of squares around the mean.

Most people refer to it as the proportion of variation explained by the model which is .270 R

square is the proportion of variance in the dependent variable (OT) which can be explained by

the independent variables (OJ) which is 0.270. Hence H1: Organizational justice significantly

effects Organization trust. This is an overall measure of the strength of association and does not

reflect the extent to which any particular independent variable is associated with the dependent

variable.

Table 4.7

ANOVA

Model Sum of Squares Df Mean Square F Sig.

1

Regression 41.214 1 41.214 91.745 .000b

Residual 111.408 248 .449

Total 152.622 249

a. Dependent Variable: OT

b. Predictors: (Constant), OJ

The significance tells that whether the relation is hit or flop. It is also called P.Value. The value of sig should

be greater than 50% or 0.5 (P.Value<α). The value of α is 5%. If the P.Value is greater than 5% than the

relation is flop. But if the P.Value is less than 5% than it relationship will hit. Thus our relation is hit because

of 0.0000 values.

36

Organizational Justice has significant impact on Organizational Trust Accepted

4.1.4.2 Job Satisfaction and Organizational Trust

Table 4.8

Model Summary

Model Summaryb


Square

Std. Error of the

Estimate

Durbin-Watson

1 .485a .235 .232 .68609 1.306

a. Predictors: (Constant), JS

b. Dependent Variable: OT

In our study the Durbin Watson value is 1,306 which are in between 1.5 to 2.5 which is good

sign. And the standard deviation is 0.68 close to 1 which is a good thing as it shows how much

values of variables are deviating from each other.

Adjusted R square, often called the coefficient of determination, and is defined as the ratio of the

sum of squares explained by a regression model and the "total" sum of squares around the mean.

Most people refer to it as the proportion of variation explained by the model which is 0.235. R

square is the proportion of variance in the dependent variable (OT) which can be explained by

the independent variables (JS) which is 0.235

Table 4.9

ANOVA

Model Sum of Squares Df Mean Square F Sig.

1

Regression 35.883 1 35.883 76.230 .000b

Residual 116.739 248 .471

Total 152.622 249

37


b. Predictors: (Constant), JS

The significance tells that whether the relation is hit or flop. It is also called P.Value. The value

of sig should be greater than 50% or 0.5 (P.Value<α). The value of α is 5%. If the P.Value is

greater than 5% than the relation is flop. But if the P.Value is less than 5% than it relationship

will hit. Thus our relation is hit because of 0.0000 values.

Job Satisfaction has significant impact on Organizational Trust Accepted

4.1.4.3 Organizational Justice and Job Satisfaction

Table 4.10

Model Summary

Model Summaryb


Square

Std. Error of the

Estimate

Durbin-Watson

1 .552a .305 .302 .47229 1.502

a. Predictors: (Constant), OJ

b. Dependent Variable: JS

38

In our study the Durbin Watson value is 1.502 which is between 1.5 to 2.5 which is good sign. .

And the standard deviation is 0.47, close to 1 which is also a good thing as it shows how much

values of variables are deviating from each other. Adjusted R square, often called the coefficient

of determination, and is defined as the ratio of the sum of squares explained by a regression

model and the "total" sum of squares around the mean. Most people refer to it as the proportion

of variation explained by the model which is 0.305. R square is the proportionof variance in the

dependent variable (JS) which can be explained by the independent variables (OJ) which is

0.336.

Table 4.11

ANOVA

Model Sum of

Squares

Df Mean

Square

F Sig.

1

Regression 24.252 1 24.252 108.722 .000b

Residual 55.319 248 .223

Total 79.571 249

a. Dependent Variable: JS

b. Predictors: (Constant), OJ

The significance tells that whether the relation is hit or flop. It is also called

P.Value. The value of sig should be greater than 50% or 0.5 (P.Value<α).

The value of α is 5%. If the P.Value is greater than 5% than the relation is

flop. But if the P.Value is less than 5% than it relationship will hit. Thus

our relation is hit because of 0.0000 values.

Organizational Justice has significant impact on Job Satisfaction Accepted

4.1.1.4 Coefficients

39

Table 4.12

Coefficientsa

Model Unstandardized Coefficients Standardized

Coefficients

t Sig. Collinearity

Statistics

B Std. Error Beta Tolerance VIF

1(Constant) 1.517 .202 7.495 .000

OJ .574 .060 .520 9.578 .000 1.000 1.000


Table 4.13

Coefficientsa


Coefficients

t Sig. Collinearity

Statistics


1(Constant) 2.007 .143 14.071 .000

OJ .440 .042 .552 10.427 .000 1.000 1.000

a. Dependent Variable: JS

Table 4.14

Coefficientsa


Coefficients

t Sig. Collinearity

Statistics


1(Constant) 1.089 .270 4.036 .000

JS .672 .077 .485 8.731 .000 1.000 1.000


40

CHAPTER NO 5

5.1 Questionnaire Sample:

5.2 Introduction:

Organizational Justice is an integral part of the banking sector. With the help of

Organizational Justice Organizational Trust can be enhanced and employees can be satisfied.

The impact of Job Satisfaction can be more increase with the help of Organizational Justice.

5.3 Objectives of the Research

To assess the impact of Organizational Justice on Organizational Trust with mediating role of

Job Satisfaction.

5.3.1 Questionnaire

Research Questionnaire

This survey is based on the relationship between organizational justice and organizational

trust with mediating role of job satisfaction. The aim of this study is to understand the

employee satisfaction so that it can be helpful to build positive employee relations and a

positive work environment.

Gender: Male Female

41

Age: 18-20 25-30

20-25 30 and above

Income: 10,000 to 30,000 30,000 to 60,000

60,000 to 80,000 80,000 and above

Please take a few minutes to tell us about your job and how the organization assists you.

Indicate the degree of your agreement or disagreement with each statement by circling your

answer that best represents your point of view.

Please mark the

appropriate choices in

boxes (according to your

level of job satisfaction)

Very

Dissatisfied

1

Dissatisfied

2

Neither satisfied

nor dissatisfied

3

Satisfied

4

Very

satisfied

5

1

The physical

conditions in which

you work.

2

Freedom to choose

your own working

methods.

3Your fellow

workers.

4The recognition you

get for good work.

5 Your immediate

42

manager.

Please mark the

appropriate choices

(according to

organizational

justice).

Strongly

disagree

1

Disagree

2

Neutral

3

Agree

4

Strongly

agree

5

6My work schedule

is fair.

7I think that my level

of pay is fair.

8

I consider my work

load to be quite fair.

9 Overall the rewards

I receive here quite

fair.

10 Outside pressure

does not impudence

performance

evaluations

Please mark the

appropriate choices

(according to

organizational

trust).

Strongly

disagree

1

Disagree

2

Neutral

3

Agree

4

Strongly

agree

5

11 There is atmosphere

for honest

cooperation among

employees.

12 Clear expectation

43

connected with

results and aims

from all employees.

13 Employees are

willing to share

knowledge.

14 Employees openly

admit and take

responsibility for

their mistakes.

15 Employees avoid

participating in

gossip and unfair

criticism of others.

Thank you.....

44

CHAPTER NO 6

6.1 RESULTS:

The entire four hypotheses have been confirmed with the support of situational analysis. After

the analysis of results it can be observed that organizational justice has significant impact on

Organizational Trust and Job Satisfaction plays a partial role in mediating the relationship

between Organizational Justice and Organizational Trust.

Referring to H1, the Organizational Justice has significant impact on Organizational Trust

because there exists positive correlation between them and the value of p is 0.000 which is less

than 0.005 and also the value of R is .270 which is showing a positive correlation between

Organizational Trust and Organizational Justice, So the hypotheses are accepted.

H2 was accepted because the value of p is 0.000 which is less than 0.005 and the value of R

is .235 which is showing simple positive correlation. Durbin Watson value showed the

significance between both the variable exists and its value is 1.305.

H3 and H4 were also accepted. In H3 the value of P was less than 0.005 and H4 indicated the

mediator’s role in relationship between the independent variable and dependent variable. As per

to the findings the mediator’s role between the independent variable and dependent variable is

partial.

45

CHAPTER NO 7

7.1 CONCLUSION:

The Researcher has provided us with the findings that Organizational Justice has a significant

impact on the Organizational Trust and the Job Satisfaction has the partial impact on the

relationship between Organizational Justice and Organizational Trust.

Relationship between Organizational Justice and Organizational Trust is enhancing by the

mediating role of Job Satisfaction because the results of analysis are positive. So if Job

Satisfaction variable is added the employees trust will be enhanced.

7.1.1 RECOMMENDATIONS:

There are various recommendations which prevail around the entire research work:

In Pakistan Organizational Justice is necessary for everybody so the employees and

executive bodies should try to use these variables as a main resource to satisfy their

employees. If the Organizational Justice is high than the Job Satisfaction of employees

will high and the organization will achieve their employees trust.

7.1.2 Recommendations for future Research Direction:

The sample comprised of employees of private banking sector only. It can be done

employees of other sector as well.

46

There has not been done allot of research on these variables together as Organizational

Justice also have very less research conducted it with respect to other variables further

researches can be done on these variables by addition of one or more variables.

We have used mediator for conducting the analysis, but in future studies a moderator can

also be used to see the relationship among the independent variable and dependent

variable.

REFERENCES:

1. Andrisani, P. (1978), “Levels and trends in job satisfaction, 1966-1972”, in Andrisani, P.

(Ed.), Work Attitudes and Labor Market Experience, Praeger, New York, NY.

2. Angel, H.L. and Perry, J.L. (1981), “Empirical assessment of organizational commitment

and organizational effectiveness”, Administrative Science Quarterly, Vol. 26, pp. 1-14.

3. Bagozzi, R.P. (1980), “Performance and satisfaction in an industrial sales force: an

examination of their antecedents and simultaneity”, Journal of Marketing, Vol. 15 No. 4,

pp. 65-7.

4. Bartol, K.M. (1979), “Professionalism as a predictor of organizational commitment, role

stress, and turnover: a multidimensional approach”, Academy of Management Journal,

Vol. 22, pp. 815-21.

5. Ambrose, M. L., Seabright, M. A., &Schminke, M. (2002). Sabotage in the workplace:

the role of organizational justice. Organizational Behavior and Human Decision

Processes, 89, 947–965.

6. Aremu, A.O. (2005), “A confluence of credentialing, career experience, self-efficacy,

emotional intelligence, and motivation on the career commitment of young police in

Ibadan, Negeria”, Policing: An International Journal of Police Strategies & Management,

Vol. 28 No. 4, pp. 609-18.

7. Mary Welch, (2006),"Rethinking relationship management", Journal of Communication

Management, Vol. 10 Iss 2 pp. 138 – 155.

8. Baier, A. (1986), “Trust and antitrust”, Ethics, Vol. 96 No. 2, pp. 231-60. Bennis, W. and

Nanus, B. (2003), Leaders, Harper Collins, New York, NY

9. http://ir.uiowa.edu/cgi/viewcontent.cgi?article=1799&context=etd

47

http://ir.uiowa.edu/cgi/viewcontent.cgi?article=1799&context=etd

10.http://mrp.ase.ro/no34/f7.pdf

11.https://www.psychologyafrica.com/2011/08/organisational-justice-people-

and-their-perceptions/

48

http://mrp.ase.ro/no34/f7.pdf

Documents

fyp