Investigate the Perceived Effects of Reward Equity (Organisational Justice) on Affective Organization Commitment and Intrinsic Job Motivation
Date
2014-01-20
Authors
Mpofu, Zibonele
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Abstract
This study investigates the perceived effect of reward equity on affective
organisational commitment and intrinsic job motivation amongst IT employees
within the financial services industry. Standard Bank IT employees have been
used as the sample for the study.
Affective organisational commitment with its many antecedents has been
extensively studied, but there are very limited studies that investigate the
perceived effect of reward equity on both affective organisational commitment
and intrinsic job motivation of employees within the financial services industry in
South Africa. This study seeks to fill this gap.
To assess the effect of reward equity perceptions on affective organisational
commitment and intrinsic job motivation, the study uses correlations, structural
equation modelling. Mediation and moderation effects were also explored.
The data was collected through a paper-based survey. This was designed to
improve the probability of getting responses from employees. The sampling was
random.
The study found evidence to support a positive relationship between distributive
justice and affective organisational commitment. There is no evidence in the
study data to support a positive relationship between procedural justice and
affective organisational commitment. Reward equity was also found not have a
relationship with intrinsic job motivation as proposed in the study.
The study also found evidence of a statistically significant mediation relationship
between distributive justice and intrinsic job motivation through affective
organisational commitment. Moderation effects were also found to be
statistically significant with Qualifications and Intrinsic Job Motivation as
moderators, wherein both types of justice where independent variables and
affective organisational commitment a dependent variable. This moderation
effect was such that, employees with higher levels of education (Qualifications)
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and Intrinsic Job Motivation displayed higher levels of affective organisational commitment for a small positive change in justice level and vice-versa.
The key message from the study is that reward equity does have an effect on affective organisational commitment, though this effect appears to be statistically significant with distributive justice only in this study. Reward equity does not have a statistically significant relationship with intrinsic job motivation.
Qualification acts as a moderator such that there is a stronger positive relationship between both forms of justice and affective organisational commitment, for employees with higher qualifications.
Intrinsic Job Motivation acts as a moderator such that there is a stronger positive relationship between both forms of justice and affective organisational commitment, for employees with high intrinsic job motivation.
Description
MBA thesis
Keywords
Work motivation, Reward equity